Nov 25, 2013 Simon Williams
When sectors perform well, it's customary to see growth in the number of businesses that operate within those industries. The demand from consumers yields a larger supply - and this might mean anything from more products on the shelves to the emergence of new companies.
The latter has been the case within the short term lending sector in the United Kingdom recently. Because British citizens need help to make ends meet and are constantly being denied funding by traditional lenders and banks if they have anything lower than a perfect consumer credit score, they've had to look elsewhere. This has caused the alternative finance sector to experience a large boom in the days since the global recession of 2008.
Individuals who couldn't pay back loans at the height of the recession were being denied help and took to short term lending outlets, as these companies not only have a more relaxed application process, but they get people their money much faster than traditional channels.
A recent study published by Apex Insight revealed that the British alternative lending market has been growing substantially. The news source said that there are now more than 2,000 businesses in operation within this sector, as well as a number of very large chains with numerous locations, like The Money Shop, Albemarle & Bond and a number of others.
The report explained that this type of growth has occurred as a result of more demand, banks' increasing worries about taking on risk and more regulation and red tape within the traditional British lending industry, among other factors. Apex also noted that the continually falling price of gold has been a contributing element, and remains a reason why short term lending should continue to be popular and sought out in the U.K. for some time to come.