Borro.com (www.borro.com), today reports a sharp increase in the numbers of both prime and subprime borrowers using its services. Borro.com, which launched in July 2008, has been doubling its loan-book every 4 to 6 week over the last six months, and recently expanded its lending capacity to keep pace with accelerating demand.
Borro.com pledges to guarantee loans of up to £1m provided the customer has the assets to cover the advance - something the banks are seemingly unable or unwilling to do.
Paul Aitken, CEO and Founder of Borro.com said, "During the past 12 months, many prime market borrowers have been reverting to sub-prime lenders to secure cash advances - and it seems the situation is getting worse with even the sub-prime lenders turning down applications from credit worthy individuals. It doesn't seem to matter what your credit history is - lending has become the exception to every rule. The bottom line is that it's now virtually impossible to get a guaranteed loan on the high street these days."
Aitken continues, "Borro.com changes all of that. We are increasingly plugging ‘credit gaps' for prime and sub-prime consumers alike. The common denominator is that both have spent the last 15 years accumulating valuables which they can now use as collateral to guarantee short-term loans. As a result, we are becoming more and more mainstream every day."
Borro.com's online approach makes pawnbroking more accessible than ever. It is also discrete, safe and fast - with loans processed in 24 to 48 hours. The economic climate in tandem with its unique approach means that 75% of Borro.com's clients are completely new to pawnbroking. Its average loan is now around £800 which customers will typically borrow for a period of around three months, secured on an asset worth in the region of £2,000.
With the lower costs of operating online, Borro.com is also able to offer the lowest interest rates in the industry when compared to alternatives such as an unapproved overdraft, or ‘payday loans' (which can charge as much as 30% interest per month). On £1,000 loan, Borro.com charges a monthly interest rate of 4%, which is about the cost of a bank overdraft letter. Interest, however, is not compounded daily or monthly as with credit cards or payday loans, and there are no redemption penalties or credit checks.
