www.ipaydayloansonline.com

Calling all loan brokers - how are you finding trading conditions at the moment? According to reports, many brokers who once had access to many unsecured and secured loan products have found that many lenders have considerably reduced the number of finance services for them to sell to their customers meaning there's a big commission gap to fill in many cases. Although the same reports also suggest that many lenders are coming back into the market with some interesting packages - mainly in the secured loan and remortgage areas - business is certainly nowhere near what it was 3-4 years ago.

Some loan brokers may have turned to the 'payday loan' market to replace lost incomes and this has proved a successful change of direction for many. The demand for short term loans has rocketed since the banks cut much of their lending, and many professionals are doing very well in this market.

However, there is some uncertainty over the future of this particular type of lending and many companies offering payday loans are being scrutinized over their business practices. The main concern is that these types of loans come with astronomical rates of interest - typically 3500-4000%. In real terms, as long as the customer complies with their agreement and repays the loan on their 'payday' then the amount of costs incurred is usually reasonable. However, should a customer default on their payments, the amount owing to the creditor can balloon very quickly out of control due to the extortionate interest being added.

There are a couple of solutions that loan brokers should consider. Firstly, if a client is desperate enough to be seeking a 'payday loan' then it's probably because they've already tried the mainstream lenders and been turned away. If they've been rejected for a 'normal' loan, then this is most probably due to poor credit rating or over-commitment on credit already. Therefore, it could make sense to offer the client a debt solution rather than an expensive loan - and with UKMS the broker would probably make a better commission choosing this route. Win-win for both client and broker!