Short term loans growing as popular forms of nontraditional credit

Short term loans are becoming one of the most popular sources of nontraditional credit at Lasco Financial Services and other institutions, reports The Gleaner of Jamaica, Wisconsin. Lasco Financial's short term loan portfolio has grown 400 percent in less than a year, which the business originally aimed to expand by 30 percent. The short term loans offered through Lasco Financial Services Limited are slightly different than those provided by other short term lenders, because Lasco reduces default risk by arranging repayment through salary deductions. Other lenders simply require borrowers to repay the loan, with interest, by their next short term and don't require a credit check. The total market in the Jamaica, Wisconsin, region is estimated to be $500 million by the news source. Lasco Financial managing director Jacinth Hall-Tracey told the publication that the company's short term portfolio is approximately $20 million. Pawn shops, short term lenders and other businesses offering nontraditional credit sources have flourishing during the recession as a growing number of Americans are unable to obtain traditional loans. Daily Finance attributes this growing business sector to a number of factors, including unemployment, underemployment and tighter credit restrictions. As a result, the publication reports the short term lending industry has grown from 500 locations in 1990 to more than 22,000 in 2010.