Lending Money

To lend money on QuickLoans.co.uk is to do so in a controlled environment. Whilst there risks attached to lending money, we do our best to mitigate those risks and ensure the maximum return to you our lenders.

We are upfront that most of our borrowers will be those individuals who have had problem getting credit in the past, this can be due to many reasons and some of them understandable. It’s our job to separate those who have previously fallen on hard times and those that have deliberately failed in their previous credit commitments. We go into details of exactly how we do this later on in this lenders section.

So you are thinking of lending to subprime borrowers, are you mad?

Well there is a saying in the financial markets that goes “There is no such thing as bad risk, just a bad price”. What this means is that you wouldn’t expect to lend your money to subprime borrowers at prime borrowers rates of 8% APR.

So how much would you expect to lend your money out at?

Most legitimate payday loan companies lend their money out at rates of up to 1800% APR. Now whilst this does seem excessive, it really isn’t because the loans are usually over a shorter period of something like 1 month. For example someone borrowing £80 and paying £100 back at their next payday will be paying 1737.2%APR.

With banks and building societies currently paying returns back of around 2-3% APR, you can see why funding payday loans is a good idea if done in a controlled environment such as the Quick Loans Marketplace.

What's more most borrowers are not stupid people and know that because they have fallen into the red on previous occasions that they are now higher risk and will get charged more for credit. For Borrowers, lending in a safe enviroment also benefits them as nobody is knocking on the door or calling at their work to collect the repayments in cash.