Guarantor Loans have stepped into the space where it is difficult to apply for since
the onset of the Credit Crunch, particularly if you have poor credit. One group of people amongst the hardest hit are the Self Employed.
With most unsecured lenders requiring three years worth of chartered accounts, Guarantor Loans are making a difference with the approach they take.
Instead of asking for accounts, these loans require Self Employed applicants to provide three months worth of bank statements showing their income. This type of loan is becoming increasingly popular in today's market, as other unsecured lenders tighten their criteria and in some stop lending to all but existing customers.
This type of lending offers a cheaper alternative to other forms of credit such as Payday and Doorstep Loans. As the loan repayments are effectively guaranteed by the Guarantor companies offering Guarantor Loans Online will lend to customers that can not access credit elsewhere.
Despite their innovative approach to helping Self Employed customers, all applicants will have to pass rigorous checks. As a responsible lenders Guarantor Loans companies will credit search both the Self Employed applicant and their Guarantor as well as carrying out a full income and expenditure check as required by Office of Fair Trading guidelines.
An underwriting manager at a loans company said: "We find that many of our self employed customers for one reason or another can not produce three years worth of chartered accounts, but are still perfectly suitable for a this type of loan product. In the current economic climate we want to help as many customers as possible"
Another recent innovation in this market space is the delivery mechanism for the products. These typically involve using websites and with the introduction of a Livechat facilities. This enables customers to talk to its lenders and answer questions before making an application further enhancing the customer experience.