Cashfloat, a UK-based lender that has operated as a specialist in short-term loans since 2014, has shared insights into its initiatives to spot and prevent harmful or irresponsible reliance on debt, with investments in support services, financial education, and fair, affordability-centric loan assessments.
The company, which is authorised and regulated by the FCA and part of the Western Circle Group, believes that information and signposting can help consumers avoid high-risk financial decisions and ensure that those with debt concerns receive the right support.
The Relevance of Money Management Help During Ongoing High Living Costs
While the cost-of-living crisis has been an issue for some time, the sustained increase in basic outgoings such as food and utilities has created a situation in which more and more people are relying on short-term debt and credit cards to finance everyday expenses.
This has been compounded by the sudden fuel price rises. While the government has announced a £50 million scheme to support households who pay for uncapped heating oil, the pressure on other utility prices is causing serious concern.
Short-term lenders are seeing more cycles of repeat borrowing, in some cases with consumers taking on credit to keep up with repayments elsewhere, frequent applications for payday loans to bridge income gaps at the end of each month, and patterns indicating a lack of financial stability.
Chief Operating Officer, Peter Kimpton from Cashfloat says, ‘As lenders, we have a duty of care to the consumers we serve. While it’s always great to be able to approve a loan that we can see is clearly affordable and within the individual’s ability to comfortably repay, focusing on approving as many loans as possible simply isn’t responsible.
We’re often the first to see indications of problems with a household’s financial well-being or that affordability assessments show a person shouldn’t be a candidate for more debt. Being able to connect people with debt advice charities and organisations or explain why a loan isn’t likely in their interests is far more important in some instances than any loan amount.’
Cashfloat’s Efforts to Drive Responsible Borrowing Behaviours
Today’s economic climate is strained, but Cashfloat has long advocated for proactivity in keeping borrowers informed, improving financial literacy, and sharing guides and tools that help individuals make sensible decisions based on their financial position. The firm achieves this by:
- Publishing free resources and guides covering topics such as budgeting and claiming benefits
- Sharing complimentary online tools like affordability checkers and loan calculators
- Signposting applicants with debt issues to charities and support organisations
- Providing quality customer services with experienced and friendly advisers
- Devising viable solutions for existing borrowers whose ability to repay is altered due to an unexpected change in personal circumstances
The company has a strong focus on clarity and transparency. It offers varied product features to make it easier for borrowers to see what a loan might cost, how much they might need to repay each month, and how adjusting their application, such as applying for a longer repayment period, will impact those figures.
Short-Term Loan Features From Cashfloat That Assist in Smart Money Management
Cashfloat provides fixed repayment structures that prevent monthly repayments from changing, the ability to repay a loan and close the account early with no penalties or charges, and an Easy-Start process that gives borrowers the option to delay their first repayment, again without increasing the interest payable or adding more fees.
This ensures that borrowers with a Cashfloat loan can settle the loan sooner and reduce the overall interest they pay, or get their finances back into a stable position before repayments begin.
Peter adds, ‘Short-term loans can be an essential way to support household finances when unexpected bills or costs crop up, but it’s essential that we, and all authorised lenders, take steps to help borrowers who are either already in or at risk of falling into repeat debt cycles.
Identifying earlier when a consumer might be struggling and offering advice right away can make a tremendous impact and support better financial outcomes.’
Cashfloat has been trading since 2014 and is a Western Circle brand, providing short-term, direct loans to consumers based on detailed affordability assessments, rather than relying solely on credit-scoring checks.
The company’s resource library is freely available on its website, including for consumers who have never applied for a loan with the firm, and includes tools like loan calculators and step-by-step explanations of how loan applications are processed.
About Cashfloat
Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by The Financial Conduct Authority.
