Efforts to augment financial literacy within consumers engaging with the UK’s short-term lending sector by Cashfloat are paying dividends, with insights showing that the direct lender has been able to support 150,000+ borrowers with transparent lending.
The company concentrates on affordability-centric loan approvals, rather than defaulting to generic credit-scoring checks, and, with a wealth of free digital resources, has assisted thousands of consumers who benefit from straightforward information about their borrowing options.
The use of clear consumer communication to reinforce responsible lending
Cashfloat is leading change in the short-term lending industry by showing how fair, simple, and understandable loan affordability assessments help consumers make informed decisions and avoid applying for loans or consenting to hard credit searches when their applications are unlikely to be successful.
While all regulated, authorised lenders have a mandatory duty to provide certain information, such as the total cost of credit, the lender believes that many borrowers are confused by the terminology or don’t recognise the relevance of the information they are shown.
Chief Operating Officer Peter Kimpton says, “Our approach is all about equipping potential borrowers with vital information and guidance before they apply, rather than later on in the loan application process.
Tools like our free online affordability checker and loan calculators, for instance, mean that a consumer submitting an initial application already knows whether they are likely to meet our affordability criteria and how spreading their repayments over a longer period will impact the overall amount repayable.
Transparency isn’t just about compliance, but about supporting responsible loan applications and money management. When information is accessible, and customers understand what they’re agreeing to or applying for, they’ll know whether repayments will fit into their budget, which means better outcomes for all parties.”
Cashfloat’s investments in resources and guides for prospective borrowers
Alongside the tools mentioned, and video walkthroughs explaining how the application process works, Cashfloat actively encourages consumers to explore alternative repayment periods, loan amounts, and even products before they commit to applying, with integrated third-party resources built into the application journey. They include:
- Links to MoneyHelper.co.uk for borrowers worried about money or at risk of late repayments.
- Immediate information about APRs, repayment schedules and amounts.
- A user-friendly resource where borrowers can slide a scale to change the amount borrowed and repayment periods to see the effects.
The lender has developed several loan features to benefit its customers, including an optional Easy Start scheme that delays the first repayment, allowing borrowers to resolve financial emergencies or cash flow issues before repayments begin, with no fees or added interest.
Borrowers can also repay their loan account early at any time if their circumstances change, reducing the interest paid and, again, incurring no early settlement charges, admin fees, or other costs.
To date, the company has extended loans to 150,000+ people and is rated 4.8 out of 5 stars based on 894 reviews on Reviews.io, and with 98% of borrowers happy to recommend the firm, its novel approach is having a marked impact on consumer experiences.
More about Cashfloat
Cashfloat is a UK-based direct lender offering short-term loans to help consumers cover temporary financial gaps. It provides affordable, responsible lending, emphasising the importance of being able to comfortably manage repayments.
The company has redesigned the conventional loan application process to prioritise consumer education through numerous resources, including a library of online guides and articles, all of which are complimentary.
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.
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