Increase in customers turning to Provident Financial

Over the past six months or so the credit crunch has really taken a hold in the UK, and many consumers have found that they are unable to get any form of finance due to their credit rating coupled with increased wariness from lenders when it comes to lending to those with damaged credit.

There are been reports of decreased approval levels with both loans and credit cards, and in the run up to Christmas many customers that that had been banking on being able to get credit found themselves financially strapped without the financial lifeline that they had been hoping for.

It seems that many of those struggling to get finance through the regular and traditional routes have turned to alternative lenders, including Provident Financial, which is a company that specialises in small, short term unsecured cash loans. These loans are between £50 and £500. The money borrowed is delivered to the home of the borrower via a local agent, and repayments are then collected by the agents on a weekly basis.

According to officials from Provident Financial the number of customers taking on finance through the company has gone up by 3.8% over the past year, and this reflects the number of people that have been turning to short term lenders such as this as an alternative to the traditional credit card or loan, which for many is far more difficult to get now than it was in the past.

According to one senior official from Provident Financial the firm is in a good position to help consumers in light of current market conditions because the company has plenty of funding. He added that business was currently booming for the firm.