Leadign UK lender Cashfloat opens new branch in Barcelona

The UK payday loans market is easily known to be one of the hardest markets to operate in worldwide. This is following a huge crackdown on lenders by the Financial Conduct Authority. Since January 2015, many new regulations have been introduced, making the sector much harder for payday loan providers to operate in. As a result, lots of UK payday lenders closed their doors to the public.

Western Circle Ltd, meanwhile, developed a new business lending model designed to flourish under the newer, stricter rules. These addressed key concerns of responsible credit and affordability while still focusing on the FCA principles of treating customers fairly.

The model comprises of a proprietary Loan Management System (LMS) built in-house from scratch to conform directly with even the toughest regulations. The LMS is designed to bridge customers’ interest and lenders’ business needs without conflict. 3 years and over 10,000 customers later, WCL has proven that companies can be profitable while still treating customers fairly.

Since the UK loans market is relatively harsh compared to others worldwide, WCL believes that their new model can be adapted successfully in other countries too – especially where regulations are not as strict. Western Circle’s model is unique because the focus is on their customers as opposed to how much profit they can make which builds the business’s sustainability and credibility.