Cashfloat, the regulated direct lender within the Western Circle Group, has achieved significant growth in awareness and reputation over recent months, offering safe, transparent, and simple loans to over 100,000 UK households, with a commitment to assessing every application on its merits.
The firm, which has adopted an advanced AI decision-making system to expedite approvals for successful applicants while continuing to monitor and underwrite more complex loans individually, has become a contender against far larger lenders, which many perceive as difficult to deal with.
Understanding Barriers to Regulated Lending for British Households
There have long been issues in the short-term lending market, despite the Financial Conduct Authority (FCA) publishing new regulations, including interest and price caps, which came into effect in January 2015 and apply to most short-term loan products.
These reforms were primarily aimed at ending the unethical and sometimes predatory practices of unscrupulous lenders, but the Financial Ombudsman Service reported seven years later that it was still receiving complaints about lending that was either unaffordable, irresponsible, or both.
According to the rules, lenders can extend credit only when they are confident the applicant can afford their repayments and fully understands the cost of borrowing, the interest rate they’re paying, and when instalments fall due.
However, regulatory changes mean conventional banks and other mainstream lenders are more likely to automatically reject applicants without reviewing the circumstances or context of their applications, with 78% of adults aged 18 to 34 reported to have been turned down.
Of those, 12% were advised that insufficient credit history was an issue; 11% were turned down due to a lack of financial history; and a separate 22% had given up trying to secure urgent financing because they found the process too lengthy or difficult.
Unfortunately, this leaves a gap in lending provision: applicants who can afford repayments and have legitimate reasons for needing short-term financing are resorting to unregulated and unauthorised lenders, putting them at serious risk.
Cashfloat’s Fresh Approach to Providing Safe Short-Term Lending Products
Amid this environment, Cashfloat set out to rethink how short-term loans are assessed and approved. Over the last decade, it has become a well-regarded alternative to other lenders, with a mission to ensure that people who need to borrow can access funds quickly and responsibly.
In a shift away from traditional loan assessments, which in many cases turn down applicants with no further analysis if they have below a threshold credit score, Cashfloat analyses affordability as its primary decision-making factor:
- Each applicant must provide information about their income, outgoings, sources of income, and borrowing needs at the point of application. The form is concise, user-friendly, and 100% digital, avoiding the issues associated with scanning, printing, and posting documents.
- Borrowers can spread repayments over up to nine months and are provided with an affordability calculator to use before application to see how the duration affects their payments and whether they are likely to be granted the loan they have requested.
- Applicants with adverse credit or no borrowing history are not rejected out of hand, and if they have demonstrated they can confidently afford the repayments and aren’t overstretching their budgets, they have a good chance of approval.
The business is fully regulated and prides itself on parity, treating customers with respect, and offering a range of support through online guides and resources, educational publications, and access to a support team that can be contacted via email or phone.
Reflecting on Cashfloat’s Position as a Trusted Short-Term Direct Lender
Peter Kimpton, Chief Operating Officer from Cashfloat, says, ‘We know first-hand that a large proportion of first-time customers feel stressed, anxious and worried about applying for a loan, often because they are nervous about having their finances scrutinised, feel they need to justify their requirements, or assume they are going to be turned down.
Our focus is on fairness at every turn, and we recognise that even the most careful budgets can come under pressure.
While we apply our responsible lending policy with great care, and cannot always help, if we can, we will, and it has been an incredible milestone to record 100,000 successful loans, and clients who know that if an emergency strikes again in the future, we’re on their side.’
Cashfloat is rated 4.3 stars (excellent) on Trustpilot after 491 reviews and 4.8 out of 5 stars on Reviews.io after 799 reviews, with 98% of customers stating they would recommend the company.
Further information about lending products and policies is available via the Cashfloat website.
About Cashfloat
Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by the Financial Conduct Authority.
