Why Peachy Have Got it Right

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Why Peachy Have Got it Right
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The market for online borrowing is now a
completely different place to what it once was,
the product has changed and with that so have the
lenders. Some of the more well-known lenders who
were most commonly associated with this market
are fast becoming replaced with more consumer
friendly and customer focused lenders, one such
lender is Peachy.
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For many years the online lending market
decreased in terms of its popularity with
consumers due mainly to its obvious inability to
truly meet the changing needs of the modern day
consumer. This once incredibly popular and useful
market developed over time into a resource which
was often used, simply as a result of a lack of
suitable alternative.
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The original product offered by the short term
loans market was a world away from the modern
type of online loan offered by the likes of
Peachy. The product of the early days was based
on a single payment repayment structure. This
meant customers who were approved for a loan were
asked to repay the amount borrowed, plus the
interest charged, as a one-off repayment. 
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Typically these loans allowed customers to borrow
the agreed amount until their next employment pay
date, meaning the loan repayment periods were
never longer than 31 days. The fundamentals of
these type of loans was always explained clearly
upfront but the issue was simply that for many
consumers, this style of repayment was
unaffordable.
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Usually interest was charged at about 30.00 for
every 100.00 which was borrowed and that meant a
300.00 loan would carry a repayment of 390.00
on the agreed date. For customers who later
expressed their inability to make the agreed
repayment, it was more than likely the amount
would increase at an alarming rate and
alternative repayment structures offered where
restricted and expensive to the customer long
term.
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Where Peachy loans are different is that like
other relatively new lenders to the market, their
repayments are made on an instalment basis which
is agreed up front. This means the new breed of
online loans are much more flexibility than ever
before and allows customers to make a more
informed and sensible borrowing choice.
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Many lenders in the modern market have moved away
from the old style of borrowing entirely and
instead now offer instalment based loans which
can be repaid over a range of repayment terms.
This could mean a few months or as much as a year
in the case of some lenders. Many lenders through
the support and guidance of the Financial Conduct
Authority also now go to extra lengths to ensure
the repayment terms offered are truly suitable to
the individual applying and their current
financial commitments.
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This is achieved through a number of mechanisms
but primarily the focus is the applicants
current credit reference file information and
budgeting information supplied at the point of
applying. This such data gives the lender the
opportunity to better understand what is
realistic and therefore possible for the
individual to repay. Thats why the likes of
Peachy loans are able to thrive whilst older
style lenders are rapidly falling behind.
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For more information find out more
www.trueblueloans.co.uk
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Thank You