Short term lending goes virtual as businesses open online ventures

One short term lending company is opening its business to the online world, and with the announcement of an internet-based short term loan aggregation site, it is clear they will be joining several other alternative credit providers from around the country.

From storefront to the digital sphere

A short term lending company based in West Chester, Ohio, is moving its business from storefront locations in Texas and Missouri to the world wide web. Cash Biz's website, cashbiz.com, will serve as loan approval hub for consumers seeking short term loans online. While the company anticipates expansion of brick-and-mortar locations, the statement release reflects an immediate opportunity for the short term lending industry in financing through the internet.

The Midwestern business is one of many short term lending companies testing the waters online recently, as BadCredit-PaydayLoans.net has also announced their internet-based loan approval business. The platform boasts fast approval for many consumers seeking short term loans, as the company has joined with a fresh group of lenders ready to issue advances to consumers efficiently, especially to those with credit scores too low to be eligible for traditional bank loans or credit card accounts.

The Online Lenders Alliance (OLA), which will host its Spring Summit from April 24-26 in Washington, D.C., offers detailed guidelines for business owners who want to make the leap to a web-based market through its Best Practices pamphlet.

Reaching an online market
The OLA says keeping their self-regulatory principles at the forefront of workers minds is key for short term lending companies to adhere to when working with customers online. The seven principles call for such businesses to make sure consumers have as much knowledge as possible about building healthy credit and the negative possibilities of taking out short term loans when such advances cannot be afforded. Customers should have as much control of alternative credit data as possible, and companies offering facilitating short term loans must, in accordance with the OLA, have consumers grant permission before any sensitive information is shared or reported to partner businesses.

Organizations like Cash Biz and BadCredit-PaydayLoans.net, if they are to be acknowledged by the OLA, should prevent many situations consumers often complain about when faced with poor practicing businesses - offering the time and resources for consumers to cancel short term loan plans without major financial penalty is just one of many terms the OLA suggests in the overreaching guidelines of their Best Practices manifest.