Bad credit lender Provident Financial is expecting 'strong profits growth' after picking up high risk customers turned down by banks.
The 'door step' lender, which specialises in small short-term loans and then collects the repayments on a weekly basis from borrowers' homes, has revealed today that business is booming.
The global credit crunch has resulted in tighter lending conditions, and more and more 'sub prime' borrowers who have been refused credit on the High Street are turning to firms like Provident Financial.
Provident Financial specialises in short-term, unsecured cash loans – generally between £50 and £500. Local agents deliver the money to their customers’ homes and call every week to collect repayments, and has seen customer numbers shoot up by 3.8 per cent this year.
“The group is very well funded and able to take full advantage of current market conditions at a time when an increasing number of consumers in the UK are having difficulty obtaining credit from high street lenders," explains Peter Crook, Chief Executive of Provident Financial.
"Strong credit management has produced an improvement in the level of arrears. The group is trading well and is expected to report strong profits growth for the year as a whole, in line with market expectations.”
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