Credit and loans as you remember it from just a few years ago has changed rapidly because of the Internet, new regulations and empowering financial startups. Traditional ways of obtaining loans can be slow and inflexible and this has led to borrowers missing out on opportunities and projects because they do not get to acquire the needed finance fast enough.
Flexible finance has been introduced to give the borrowers the power to manage their finance in a way that will support their growth. A borrower is now able to choose how much loan they want and the period it will take for him to pay it. Peachy is excited to be part of this new movement by providing flexible finance to you. The Money Charity found that there has been a £90M increase in net lending to consumers which shows the growth of flexible finance in the UK.
We live in a day and age where everyone is used to having everything instantly and on their terms and why shouldn’t you? The financial services industry has been listening. Flexible finance is the outcome of sweeping changes in the industry that have led to the rise in responsible lending, that we are thrilled to be a part of. What makes flexible finance shine is the fact that you have the power to decide how and when to repay your loans.
How are we part of responsible lending?
We always look at your financial situation before we decide to jump in. Our criteria include choosing consumers who have a fixed income by having a job or being self-employed. We also demonstrate to the customer that the loan is affordable; and this is only done after taking full account of customers’ income. Peachy puts interests of customers at the core of what we do. Responsible lending is not just a buzzword. According to new research, 1.4m loans will be issued in the UK alone. It’s imperative that these loans are issued under the banner of responsible lending to avoid snowball debts and financial hardship.
How do you know that you are working with a responsible lender who believes in flexible finance?
There are a few key signs that you should look for if you want flexible finance with a responsible lender. They include:
- Customer choice: Responsible lenders will provide their services by allowing customers the amount of loan and the period of the instalment loans with their multiple repayment option.
- Compliant with regulations: All lenders should be registered with the Financial Conduct Authority (FCA).
- Data protection comes first: A truly responsible lender will always protect your data by following the Data Protection Act of 1998.
- Connected to professional associations: It’s so important for us to be part of the Consumer Finance Association. This means that we follow theCFA code of practice for lending, which protects and benefits you as the consumer.
The benefits of having an instalment loan
Instalment loans are loans that are repaid over time with a set number of scheduled payments. Customers prefer instalment loans because they offer flexible repayment period and can be easily acquired. A borrower can get a loan to either buy a car or use it for home improvements on the same day of apply it. They are easy to repay because it give you a right to pay on dates that suits you. Instalment loans are part of flexible finance because they empower you as the borrower in the following ways:
The customers gets interest rates that they can manage because the loan is cut up into affordable chunks
- Instalment loans are more reliable, easier to trust because you know the lender is giving you breathing room to repay the loan
- These loans allow the borrower to get cash fast whether it’s a small or big loan.
The benefits of multiple repayments
Multiple repayments have allowed the borrowers to be in control of their finances by allowing them to pay back the loan bit by bit. One of the most innovative things about multiple repayments that makes it part of the flexible finance family is the fact that you can use multiple repayment calculator to figure out exactly how much you need to repay.
Multiple repayments will have the annual percentage rate (APR) of your loan as interest added to it which means that you should be aware of how much you are repaying to avoid falling into financial difficulty. Other benefits of multiple repayments include that they allow you to maintain your lifestyle. We know how hard it can be to keep up with money. This is why multiple repayments exist to give you all the flexibility you need to ensure that you are happy.
Multiple repayments will suit you if you have many financial outgoings per month such as paying for food for your family and having dependents as well.
How flexible finance is a symbol of the new consumer world
Flexible finance is here to stay because it mirrors how you live your life. Technology, consumer goods products and now financial services are becoming even more flexible to meet people at where they want to be met. The rise of these types of loans and multiple repayments are proof of this.
How do you plan to benefit from flexible finance? Let us know!