In a world where economic certainty is a shaky reality, there are few industries that are growing at a rapid rate, and, not surprisingly, one of the industries that is thriving with a growth rate of more than 35% during the course of 2015, is the UK loans market.
With the ease of access to quick loans through online facilities, it is within the reach of more and more people, even people who would be considered risks by traditional financial institutions, to apply for and get loans.
From a quick ‘payday’ loan, payable in full at the next receipt of a salary, to home loan finance, it seems the net has cast far and wide to draw in customer for the money-lending market that have been sitting on the fringes of being able to borrow money from financial institutions.
This has expanded the market exponentially, and the growth rate is not showing signs of even slowing down any time soon.
The demand for money is endless. People cannot earn it fast enough to pay their debts, or buy the homes and cars they need to take care of their families. Unplanned events, such as health issues and accidents, create the need for the funds on hand, quickly, to get life back on track.
Previous generations would have saved money in a savings account for ‘rainy days’, and would have, to a large extent, have bene using their own money for the life events that seem to catch people today unawares. They would also only have approached a financial institution such as a bank for loans to buy big-ticket items such as homes or cars, and would have saved for their annual holidays, buying new appliances, or for their children to study at a college or university.
Something about the pace of life, and the unstable values of money, and the trend towards purchasing items not locally made, has increased the amount of money spent even daily worldwide, where people are spending money they’ve borrowed, rather than saved.
The amount of interest levied on loans money is astronomical, and the shorter the term, and the higher the risks attached to lending money to people who are usually turned down for finance from the traditional financial institutions, makes the money-lending industry a vast and lucrative one.
The culture of ‘buy now, pay later’ fuels the lending market because people are driven by their need for instant gratification, to have the things they can’t really afford right now, but intend to pay off over a period of time.
The money-lending market in the UK is literally banking on this culture, because it means more money lent out, and much more money paid back.
How many industries can boast a 35% growth in one year? Arguably, none, unless there a well-kept secret in another industry we haven’t heard of yet.
So, more and more companies are being established to offer money on loan to UK residents, and it looks like it’s the business of the immediate future to get involved in, for sure.