The Covid pandemic has changed a lot of how we live and what we do.
Who would have thought just 18 months ago we would be wearing face masks everywhere we go, getting vaccine jabs, working more from home, or being on furlough, and using so much hand sanitiser we cannot find it in stock in the stores.
However, this is the new world.
And there is a new world in credit and lending.
Most loans are granted now online, and much of our banking now is done online or via mobile apps. In that sense life is easier.
But the pandemic has brought about many casualties, and not just lives, but businesses. And one of those areas that has been hard is the lending sector. Companies that lend money, not banks, but loan companies.
Loan companies are just like any other business…their business is to lend money, and receive payments. So if they were to go bust, do you still owe the money borrowed…..yes.
And unfortunately, we are seeing more and more guarantor loan companies and lenders go bust. Banks seem to be a bit sturdier, and while the loan companies are regulated through the Financial Conduct Authority, they don’t seem to be as solvent.
More and more we will see the world of lending and granting credit changing.