New Loans Such as Sunny

Many consumers who use the short term borrowing market do so as a result of a need to cover an unexpected cost. This could be anything from a broken car or a broken washing machine but the point here is that the cost is not one which could have always been planned for in advance. Short term loans which are available online has been a useful resource to consumers for nearly a decade and as a result many are familiar with the product and service which is on offer. Recent changes to who oversees this market place mean there is an increasing number of more responsible and better able lenders who are now ready to assist modern day consumers and their short term borrowing needs, one such lender for example is Sunny. This new breed of lenders focus their efforts on granting loans which are realistic and truly affordable rather than generic for all. The new governing body in question is the Financial Conduct Authority who have, for some time now, been observing the traditional practices of established lenders in an effort to understand where improvements could be made.

What has become obvious to the FCA (Financial Conduct Authority) is that many lenders who have been in operation for some time were in great need of guidance to ensure their product and practices are able to better meet the needs of consumers in a realistic and fair manner. The FCA continues to keep a sharp focus on this industry and through new guidelines and rules is helping shape a much better future for the short term loans market. Where new lenders such as Sunny have grown, some of the other more well-known lenders have had to face the reality of change in order to remain key players. One of the key findings of the FCA was that for the most part, short term loans were no longer effectively meeting the needs of the consumers using them. Although the principle of the product; to serve those individuals who needed a small loan for a short period of time, was justified, the delivery had become poor. Unlike new lenders like Sunny, many of the ‘classic’ lenders offered a product based on the understanding that a lump sum repayment is made in order to repay the amount borrowed. This lump sum was often repaid in under a month’s period, due to the fact lenders asked that customers make repayment on their employment pay date.

Through the guidance of the FCA the short term loans market is increasingly moving away from this dated model which repeatedly proved itself to be expensive and unrealistic and instead is creating a market which allows repayments to be made over an agreed period of time. Like the product offered by Sunny, this means instalment based loans. Instalment loans are proving a far more popular choice with borrowers because there is better control over the amount which needs to be paid; instead of a costly lump sum.