Provident Financial Boosted By Credit Crunch

Thu, 20 Dec 2007

UK borrowers who are being rejected by high street banks for loans are bringing an increase in business towards ‘doorstep lender’ Provident Financial .

The poor credit lender, which specialises in small short-term unsecured cash loans – generally between £50 and £500 - has reported a big increase in business despite the current credit crunch.

The global credit crunch has resulted in tighter lending conditions, meaning more and more 'sub prime' borrowers who have previously been refused credit on the High Street now turning to firms like Provident Financial to receive finance .

The firm collects repayments on a weekly basis from borrowers' homes, and has seen customer numbers for loans surge by 3.8 per cent this year despite turning away around one-third of the applications it has received.

Chief executive Peter Crook explained: "The group is very well funded and able to take full advantage of current market conditions at a time when an increasing number of consumers in the UK are having difficulty obtaining credit from high street lenders."

"Strong credit management has produced an improvement in the level of arrears. The group is trading well and is expected to report strong profits growth for the year as a whole, in line with market expectations," he added.
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