Cash-strapped British shopaholics are turning to short term loans to make sure they can snap up bargains.
Instant cash loans, or at least those that are granted within minutes of applying, are growing in popularity in the UK as rising inflation and other financial pressures mean householders have less spare cash to spend on life’s little luxuries.
People can now make an application for a short-term loan through their mobile phone while they’re in a shop, and if it’s approved they can make their purchase straight away.
Ferratum, the largest European microloan lender, has only been active in the UK for four months. Ian Porter, the company’s sales and marketing manager, said Brits still want to indulge in their favourite hobby – shopping. The ability to apply for an instant cash loan means they won’t miss out on bargains.
He went on to explain that Ferratum’s average customer is between the ages of 30 and 32 and in full-time employment. Although they have a regular flow of money coming in, every now and then cash flow becomes tight.
Ferratum’s payday advances have repayment terms of between 7 and 45 days and first time applicants can only borrow a maximum of £100. There are no hidden charges and customers are told from the outset how much their loan will cost.
Unlike some companies that offer no credit check loans, Ferratum does perform a credit check on applicants. Other than a good credit record, applicants need to be over the age of 18 with a bank account, email address and mobile phone.