The coronavirus pandemic has been a testing time for all different industries throughout the past year – lending being no exception to this.
Amidst a combination of compensation claims and COVID-19, many lenders have found it hard to operate at a profitable level, some even stopping completely.
While the past year has been a testing one for lenders, 2021 may be looking a little more optimistic – some even starting to lend again at 25% their typical lending capacity, or even higher than this, with some hoping for a 50% capacity as the world attempts to emerge from the global health crisis.
With lenders slowly but surely starting to come back from the damages of the pandemic, and payday loans likely to still be popular to the substantial figure of Brits who use them yearly (3 million), the industry could therefore see promising progression during 2021 onwards.
What Other Loan Options Are There During the Pandemic?
While the payday loan sector could see promising progression throughout the next year there’s a range of other loan options that those in need of finance might also want to explore – including loan options for people with bad credit.
The U.K. Government, for example, is currently offering a coronavirus Bounce Back Loan Scheme (BBLS). This scheme helps small- and medium-sized businesses to access the financial support they need throughout the coronavirus pandemic.
Businesses can borrow from £2,000 up to 25% their turnover (up to a maximum £50,000), with no interest or fees for the initial 12 months. Applications for this type of loan can be made up until the 31st March 2021.
While COVID-19 has significantly impacted both those in need of loans and lenders who help to provide them, with the providers starting to lend again, alongside a plethora of other loan alternatives, 2021 could be an interesting year for the industry.