Why Lenders Are Increasingly Opting to go Online

Online payday loans can be incredibly helpful for individuals who fall on hard times and find that they just don’t have enough cash on hand to satisfy all of their needs. Late rent payments, not enough food in the cabinets, or even gas for the car to get to work are common reasons people seek out online payday loans.

However, more and more lenders who specialize in payday loans are moving online only and packing up their storefront options. Many of the lenders who are just starting up don’t even bother with traditional brick and mortar businesses, often just going the online route exclusively right from the beginning.

Keep reading to learn more about payday loans and why they’re increasingly common online only.

Speed

Online payday loans are much faster than in-store payday loans, especially for the individuals seeking one. That’s because a payday loan can be applied for online without leaving the house, and a decision could be reached before a person in a storefront shop could even have a chance to review the application.

Once your application is accepted, money can be sent to you in a few hours or less.

Cost

Payday loan centers that use brick and mortar shops cost lenders a significant amount since they need to actually rent the space. More than that, lenders need a good location if they want to find customers to give payday loans to.

For the company offering loans, a storefront is just an added expense that they don’t want to pay. When companies opt to supply only online payday loans they no longer have to foot the bill for an expensive retail space.

Safety Concerns

Storefronts that used to specialize in payday loans weren’t exactly the safest places. After all, it was well known to anybody that could read that the store would have cash inside and that many of the people coming out would have cash in their pocket.

For this reason, many companies have decided that lending money online is the safest option, where only the company and the person seeking the loan know about it.

Related Post: Why More People Are Turning to Online Payday Loans.