Direct lender Cashfloat, a Western Circle Group brand, has reimagined how short-term loans are repaid by creating a service that enables borrowers to make informed decisions about when and how their repayments begin.
The Easy Start function is the latest from the Cashfloat team, which has also introduced a range of free digital affordability checkers, loan calculators, and a zero-cost early-repayment solution to ensure consumers are never penalised when they can settle their loans sooner than expected.
Exploring the benefits of Cashfloat’s easy start options for UK borrowers
Easy Start is optional, and loan applicants can choose whether or not it would be beneficial to them. It enables borrowers to pay less on their first repayment, if they wish, by adding a payment at the end of the loan term.
Reduced first instalments ensure that borrowers have more time before fixed monthly repayments begin. There is no interest added to the additional month, so the extended period does not incur any extra cost.
Borrowers can toggle Easy Start on and off when comparing repayment values and total repayable amounts. They can also review the impact clearly when selecting the loan they wish to apply for, with transparent calculations that show the loan duration and interest charges.
Using Easy Start does not affect any other terms or conditions of the loan, including the free early settlement option, and borrowers whose finances allow them to repay early will continue to pay less interest overall.
Peter Kimpton, Chief Operating Officer from Cashfloat says, “We recognised that a real issue for many borrowers was the timing between taking out a loan and beginning repayments. It was apparent that, because consumers often use short-term loans in times of financial stress, this was making it harder to restore their finances to good health.
There is absolutely no catch to Easy Start whatsoever, and we never charge interest for the additional repayment month. This ensures borrowers can take a little longer when they need it and can turn off Easy Start if it isn’t relevant, but, as a direct lender, we feel it is important that we give as much flexibility as possible so borrowers can decide what works best for them.”
Cashfloat’s non-standard approach to flexible loan repayments
The lender charges borrowers interest only for the days of actual lending, which allows the firm to accept early repayments without penalty, since the remaining interest the borrower would have paid simply isn’t incurred.
Across the UK lending industry, the norm is very different. A large proportion of mainstream lenders charge exit fees or early settlement charges, which penalise responsible financial management and make it less worthwhile to work towards paying off debt sooner.
Cashfloat’s guide to Easy Start clarifies that the total amount payable remains unchanged but is divided differently to make it easier for borrowers, with loan APRs often lower when Easy Start is applied.
The company also makes full use of the fintech advancements developed by parent firm Western Circle, with an accessible, user-friendly login area. This provides every borrower with a personalised dashboard to manage their loans and repayments, with options to make additional contributions, close the loan account early and see exactly how much interest they are saving.
About the short-term lending products available from Cashfloat
Borrowers can apply for a range of loans via Cashfloat, all available 100% online. The application process includes calculators and eligibility assessment checks to prevent consumers from applying who are unlikely to be approved.
Applications are processed rapidly using an innovative AI-enabled decision engine, with an average response time of 30 minutes. There are safeguards in place to ensure robust adherence to responsible lending policies, and applicants who do not demonstrate affordability are not accepted.
Products include short-term loans, temporary payday loans and loans designed specifically for applicants with low credit scores or adverse credit, with affordability regarded as the primary factor when determining whether an applicant can be accepted.
Full details about all Cashfloat loans, including terms, interest rates, and the Easy Start feature, are available on the company’s website, with a detailed How it Works page that explains key information in greater depth.
About Cashfloat
Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by The Financial Conduct Authority.
