Whenever people are ever looking to borrow money they have to always consider a number of different things. That is just one reason as to why people should just never rush into applying for the first piece of finance that ever comes along their way. People have to always know that they definitely need the finance in question and then if so they have to only select a realistic amount to then borrow. Any amount that is obtained must be affordable for that person so they can look to then repay the debt. The actual type of finance can then be considered, for example is a short term loan someone is after or are they looking to borrow more over a longer period of time. Credit cards are another common finance type that people will try to obtain. As well as the type of finance being obtained the lender must then also be considered. There are so many different lenders in the market place offering their products to people. Lending Stream for example are just one of so many commonly used direct lenders that can potentially grant people finance when it is needed.
Lending Stream are a large UK based financial lender that has been in the financial market place since 2008. They aim at providing their borrowers with short term loans quickly when money is needed. This company can provide people with loans from amounts ranging from £100.00 to £450.00 for their first time borrowers or some loans up to £1000.00 if they are returning to Lending Stream for my finance. They have taken this borrowing market by storm and they have rapidly grown in the short term loans market place and if they keep offering what they currently do I can see them growing even larger in the near future. This company are a direct lender meaning they do not charge anyone for simply applying for loans this way and any loans approved by them will not be charged in order to get funded into their borrower’s bank account.
A massive benefit of Lending Stream is the speed in which people can be funded their loans once any application is approved. People can apply for the product solely online and to apply there should only take the average person a matter of a few minutes. Not only is the application quick it is easy for people to go through. If that application is then accepted then Lending Stream can often look to fund that person the very same day that the application was made. In fact this direct lender for their approved applications, can pay people in their bank account within a matter of quick minutes. This way people get the money so quickly and they can have the loan at their disposable to pay quickly for what they wish for. If anyone was to suddenly receive an unexpected bill for instance, at least if someone was to borrow this way they can have the money quickly to make that repayment.
There are a number of different steps which are taken in order to be approved for short term loans. Lenders in the modern day market place will look to assess and understand the applicant throughout the application process with the aim of ultimately deciding if the loan requested is suitable. Since the introduction of the Financial Conduct Authority (FCA) as the regulating body for the market as a whole, lenders who exist to offer short term loans must adhere to a number of requirements. This requirements has been set out in order to offer a lending resource which is truly fair to consumers and ensures the loans granted are done so in a manner which is affordable. Today we will be looking in more detail as to what the application steps for such borrowing is like in a typical example.
In order to understand the application steps of short term loans we must first look at the role played by the potential customer. In order to apply for a short term loan a short and step by step application form must be completed online. For most lenders, this application process is fully completed online and can be accessed by the applicant via a number of different means. This means the application is available over a number of different devices, whether that be a mobile phone, tablet or a laptop. The aim of the application process is to deliver a simple step by step guide to the customer for supplying the information needed to make an informed decision. Typically the application form for these type of short term loans takes no longer than 15 minutes to complete. In the past lenders would focus their quality of service on their ability to deliver a loan in the quickest time possible however nowadays this is definitely not the case. Instead, nowadays whilst short term loans lenders still aim to deliver a lending decision in a manner which is timely, the main focus is whether the loan applied for is truly suitable.
Whilst the application has been completed by the customer the short term loans lender will get to work in deciding if the customer is suitable for the loan. This is achieved through a number of different steps. These steps will be different depending on the lender but will typically look at things relating to the applicants previous credit history, current credit history and existing total commitments. This information will help to give the lender an idea of whether the applicant has the ability to repay the loan. Alongside credit based checks, short term loans lenders will also review information relating to the customers current employment and the amount they receive in wages. The combination of all this information makes sure the short term loans lender is able to ensure they have made adequate checks to assess the applicants current financial situation. It is only when all this information has been fully considered by the short term loans lender, will they deliver their lending decision to the customer.
When it ever comes to borrowing money people may or may not know that there are a number of different ways to borrow money. The process that existed of people going into their local branch and seeing their local branch manager for a loan have well and truly gone. So many different lenders are now out there offering finance to people, they offer different products and some lenders out there are clearly better at what they can provide to others. That is why anyone looking to apply for loans should consider in detail all the different avenues for finance before any application can then be submitted. For example what they are looking to borrow and from what lender. The type of finance as well as there are different ways to borrow different finance types.
Now when it does come to borrowing money there are a number of different options and people can choose from these if they wish to. People can choose from both short term loans and instalment loans when they need to borrow in a loan format style. Here people can borrow a range of different loan amounts for repayments then due back over a number of different repayment terms. Both of these loans are very common as a way to borrow money and they will each have their own benefits and negatives with the product. Some direct lenders can offer people the chance to take out credit cards and this is another common way people borrow money. People here can pay for items as well as withdraw cash on credit up to a set limit via the card itself.
It seems that it is the short term loans that in recent years has grown in such a rapid way. Instalment loans are still the most common loan in the financial market place but at the moment it is also clear that more and more people are turning to this way of borrowing when they need small amounts of cash. The direct lenders that offer short term loans can often allow people the chance to borrow amounts ranging from £100 up to £1000.00 for repayments due then over repayment terms up to twelve months. People can then repay the debt therefore over a single month which is payday loan borrowing or others can repay the debt over anything up to that twelve months period of time. When selecting instalment loans people should already know, the longer people repay the debt over the more people pay back to the lenders in total. I like the loans where people repay the debt back over instalments as it gives them the flexibility they deserve when they repay the debt, they can then repay the debt back in instalments that are affordable for them to manage until that balance then becomes fully settled. When people immediately think about short term loans they do tend to think about payday loans and how they can be expensive when borrowed. However as I have shown this is not the only short term loan borrowing option that is out there.
For many year’s customers looking to borrow a small amount of money the lending resources available were somewhat limited. The online market for short term loans was, in the most part, made up of lenders who offered the classic payday loan. A payday loan was the first of its kind in the respect to the service and product which was offered. At a time when consumers were becoming more aware of the internet and its vast uses, short term loans became one of these tools. Over the years consumers have become increasingly familiar with this type of product and loan and as a result the market has served millions of consumers. As the years have passed the needs of the modern day consumer have changed, as a result the short term loans market has had to change as well. As a result of this fact the product offered in today’s market is very different to years gone by.
The original offering of the short term loans market was introduced with a view of offering a simple and easy to understand lending resource. This was delivered via an online application form which could be accessed night or day and therefore gave consumers the opportunity to consider their lending choices at a time and place which suited them. Before this consumers would have had to visit a bank or speak to a credit card provider on the phone. The application form itself was also simple in that it was usually made up of only a few stages which gathered the basic information concerning the applicant. This was likely to include name, date of birth, address, employment details and of course banking information. Typically the payday loan lenders allowed consumers to apply for amounts ranging from £50.00 through to £500.00 and if approved, could deliver the funds the same day. The repayment structure stayed true to the aim of being simple and easy to follow in that the customer agreed to repay the loan on their next employment pay date as a lump sum.
As the years have passed the payday loan product has encountered a number of issues. This is not so much in the delivery of the product but more so in the product offering itself. Although simple and easy to understand, many consumers struggled with the financial commitment asked of the payday loans and found that the lump sum repayment was often too costly. Nowadays short term loans have adapted to better combat this issue in terms of affordability. Although the application remains online based and therefore easy to access when is best suited, the product principles have changed. In order to ensure consumers applying for short term loans are able to maintained repayments detailed successfully, the repayment terms have changed. As a result instead of asking that consumers repay their loan as a lump sum, now, lenders are offering consumers the opportunity to repay their loan in a number of instalments instead. This means there is a much better sense of flexibility in the market place and with that comes consumer confidence.
There can always be times when people need money and most likely this can be down to so many different reasons. There can be some people who need a large amount of money as they are looking to make a large expensive one off purchase for items such as a new car or maybe even they are looking to put down a deposit on a new house. There can also be other people who just need a small amount of money as they are looking to tide their finances over until the next time they are paid by their employer. Whatever the reasons for anyone needing cash if they have the money saved away they can use this for what is required or at least put some of the money towards it. If that is not an option then the chances are people may need to borrow it.
When it comes to borrowing money there are a number of different borrowing options and some people may not actually realise this. People can take out for example where they can borrow small loan amounts and then repay the debt over short periods of time. Instalment loans can be a common borrowing alternative when people borrow small amounts and then repay the debt over longer periods of time. Credit cards are also a very common way to borrow money and here people pay for a range of different items or they can also withdraw cash on credit via the use of the card itself.
It is the short term loans that I am going to focus on during the rest of this article. The short term loan market for borrowing has grown rapidly and consistently over the last few years and I will feel it will continue to do so. A large amount of us can use these loans when the odd emergency funds requirement hits us. Short term loans are designed to help people over short term loan periods and should therefore never be used for a long term financial requirement. With these loans people tend to borrow amounts that range from £100.00 up to £1000.00 and then the repayment term for those loan amounts is usually between one single month, up to a twelve month maximum period of time.
A large benefit of short term loans is the speed people can get the money when they need it. People can apply for the product online or sometimes over the phone in a process that should only take a matter of minutes to complete. Then if that same application is then accepted the person can receive their money the very same of them submitting the original application. There can be some cases when people can apply for a loan and then when accepted they can be funded within a few minutes of them being approved. This is then considered by many as a perfect way to borrow small loans quickly over small time frames.
There can always be an occasion when someone needs to borrow money and upon doing so that person must always consider a number of different things before they can even look at applying for any finance. People should not that first of all they definitely need to borrow money in the first place and then if so only take out a realistic amount to repay and this amount must always be affordable so no repayments are ever missed on any debt. The actual type of finance can then be considered and there are different borrowing options. People these days can borrow both short term and instalment loans where people can borrow different loan values and then repay the debt over a number of different repayment terms. Another thing to consider would then be the lender to actually apply for the finance through. There are so many different lenders in the financial market place and believe me some are so much better than others. Below you will see further information regarding a lender named Sunny, I will explain what they offer people when they need to borrow cash.
Sunny Loans are a short term loan provider that allow people to borrow amounts ranging from just £100.00 up to £2500.00 depending on the customers status and their financial borrowing needs. People can then repay their loan over payment terms from one single month up to a fourteen month period of time, people have to borrow larger values for repayments back over those longer durations. A strong benefit of Sunny would be the fact that they offer same day funding to anyone who has their current applications accepted. Once any loan through them is approved they aim to fund that person in a matter of minutes in their chosen bank account that is provided in the application process. Any loan Sunny funds the same day they action this for free of charge. The same day funding option for this lender is one of the strongest benefits they offer.
Another benefit of short term loan borrowing would be the fact that they allow people the chance to take out loans even if the applicant has poor credit making it tough for them to get any other credit elsewhere. People obtain poor credit by taking out other types of finance and then not repaying the debt on time or missing the required repayments altogether. This makes their life harder at getting other loan applications accepted that they make in the future. Sunny Loans however may be able to help them get a small amount of cash though if they need it, they run credit checks on their application process however if they can see people have missed debt payments in the past they may still be able to offer the same people a loan. If the same people were to apply through major high street lenders such as Global banks then their applications will nearly always be declined.
The short term loans market has experienced a complete reboot in recent years, not only in terms of the type of product being offered but also the type of service which is delivered. Modern day consumers are greeted with a very different resource to that of borrowers in the early days of the market. Nowadays the loans being offered are built around choice and flexibility and have been backed by a new governing body. This governing body is called the Financial Conduct Authority and since their introduction some time ago the market place has had to adapt their overall approach to ensure their loans meet a much higher standard.
For many years the standard of service delivered by short term loans lenders has been considered somewhat poor, thanks in part there lack of focus to deliver a resource which was affordable. Although commonly the assumed reason for this was so as to allow the lenders to make even ‘more’ with high default interest and charges. In reality this is nowhere near the truth as customers who borrow money and do not pay back as agreed; are not profitable for the likes of Wonga or other short term lenders. Instead lenders too found themselves in a difficult position where increasing number of customer defaults left tougher and tougher collection practices as the preferred choice. In actual fact recent FCA (Financial Conduct Authority) guidelines and changes mean that going forward, the likes of Wonga, will be better able to assess their loan applicants and make more informed lending choices.
The guidance of the FCA extends to the type of product being offered as well and a number of key changes have been made in this area. Whereas the classic type of loan offered in this section focused on a single repayment loan; such as the loans which famed Wonga, nowadays the product is based on instalments. What the FCA brought to light through their research of the market was the fact that a vast majority of consumers who struggled to repay their short term loans, was due to the fact the financial commitment asked of them was too high. This meant modern day consumers were not able to effectively manage a repayment which asked for a lump sum, often in the region of £300.00 or more. Instead the FCA established in order to make short term loans more realistic and fair to consumers that a better range of repayment options needed to be offered. This meant considering a different type of lending based on instalments. Nowadays the vast majority of lenders consider loans on a more flexible basis meaning customers can select to repay over a range of terms. This could be anything from a few months’ worth of repayments through to a years’ worth in the case of some lenders. This new approach, coupled with better practices thanks to increased guidelines means as a whole the market is becoming a much more friendly consumer space.