Loans Table, a new service allowing web users to lend to and borrow from each other directly, launched recently.
Following the success of internet banking, travel agencies, betting exchanges and online auction website eBay, Loans Table aims to cut out the middle man and let people lend and borrow directly from each other. Loans Table says the fact lenders and borrowers deal directly with each other will see both get a good deal, "because it puts lenders and borrowers in control of their money". It adds: "Lenders can choose what rate to lend at and, by looking at the markets, decide what sort of people to lend to and when.
"Borrowers can choose to take a rate offered or to wait and see whether the rates drop. Both avoid paying needless chunks of commission to Financial MegaCorp plc and can get better rates of interest as a result."
Lenders can put up as much as £25,000 whileborrowerscan take on debts of up to £15,000.Loans Table makes its money from getting borrowers to pay a one per cent fee to them up front, as well as from a commission from any sales of payment protection insurance. "Loans Table doesn't charge lenders a bean," it adds.
Based on the prospective borrower's credit rating - a score given to consumers by major firms based how reliably they repay loans in general - people are put into different risk categories. Lenders then choose which risk market they want to target, how much they want to lend, what rate of interest they will accept, and for how long the loan should be outstanding.
Loans Table then matches this to the borrowers requirements - with lenders offering small amounts of money to at least fifty borrowers and borrowers receiving funds from a group of lenders, thereby spreading the risks for both.
Loans Table, whose founders include several members of the original Egg management team, is backed by Benchmark Capital and Wellington Partners and adds the following reassurances to worried customers:
"Loans Table is not being launched on Friday 13th. Its name does not inadvertently translate to 'ruin' or 'damnation' in any of the world's 5,000 languages. Its registered offices are not on the site of a former graveyard callously built upon by money-grabbing developers.
"And while it's true, you should really never lend money to strangers, the full version of that saying is in fact 'never lend money to strangers who haven't been assessed by Loans Table for their creditworthiness and always lend to at least fifty people not one'."
And for those intrigued by the company's name, Loans Table explains that the term is a taken from business theory. "It stands for Zone of Possible Agreement and is the overlap between one person's bottom line (the lowest they're prepared to get for something) and another person's top line (the most they're prepared to give for something)."
Credit Finance: Bank Credit Card: Visa, Mastercard
A consumer is issued credit after an account has been approved by the credit provider, with which the user will be able to make purchases from merchants accepting credit cards up to a pre-established credit limit. Often a general bank such as HSBC, EGG, Barclaycard etc issues the credit card, but sometimes a captive bank created to issue a particular brand of credit card, e.g. Goldfish or Virgin Atlantic does so. When a purchase is made, the consumer agrees to pay the card issuer. The cardholder indicates their consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a Card not present (CNP) transaction.
Personal Loan: Debt Consolidation, Bad Debt Loan, Payday Loan
A loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the loan. Acting as an introducer to providers of loans is one of the principal tasks of this Website.
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