The Personal Loan Industry in the USA
The country’s personal loan industry has evolved and matured since 2007-08, when the recessionary trend pulled the country’s economy southward and there was scarcity of cash at retail level. The personal borrowing trend has retained its momentum since then, and has also morphed as an alternate financing concept.
When Do Americans Borrow Money, and for What?
The current personal borrowing pattern shows that it is mostly need-based. At the top of the borrowing chart is loan for vehicles, which accounts for 31 percent of the pie. Next is the ‘staying on top of the bills’ category, which consumes 26 percent of borrowed amount in the country.
Then there is the vast blue-collared mass that borrows for emergency and unforeseen needs, amounting to 21 percent of the pie. Tuition and study loans, at 19 percent, rank fourth, and finally, 15 percent of borrowers who borrow to consolidate debt.
A gender analysis of personal borrowing in the US reveals that 36 percent of adult men have resorted to personal loans, while this percentage is 33 percent among adult women.
A demographic perspective to the US’ borrowing trend shows that the Gen X is the largest cohort, which has an average personal loan amount of $8,592.
And finally, the married and domestic partners are the largest borrowing group, also with an average borrowing of $8,592.
The above statistics clearly indicate that:
- The US’ personal borrowing is largely need-based (64 percent)
- Both males and females contribute equally to the borrowing basket of the country
- The Gen X or those born between 1966 and 1976 (long before the Patriots started to cheat and the Barney Frank real estate crisis of 2008 occurred) and currently around the age of 45-50 are the largest demographic borrowers in the country. This implies that advancing age is a significant reason for personal borrowing
- Americans with domestic and social responsibilities borrow more than others
The Rise of Private Lenders
The small dollar borrowers in the country have a brittle and fragile financial profile. They have a low credit score, they are economically marginalized with no alternate income sources, and they have very limited borrowing options. Often, they have been refused loans by banks and other financial institutions.
Due to these reasons, the payday loan industry has flourished in the country. Its size was around $40 billion in 2017. Approximately 2.5 million, or one in 50 American households resorted to payday loans to meet their bill payment and other emergency needs, with a typical loan size of $350. Even with Americans having to pay lower taxes and more jobs being available this is a factor.
In the last two decades, a host of private lenders offering prompt short-term, small dollar loans have established themselves in the country. Speedy Cash is one of them.
Speedy Cash – Short-Term Loans at The Speed of Need
Speedy Cash is one of the leading short-term, small capital lenders in the US. The company started its operations in 1997 in California with a single store. Since then, the lender has spread its operations across the country. Speedy Cash operates as Rapid Cash in Nevada, Washington, and Oregon.
Unique Multi-Mode Operations
Speedy Cash utilizes multiple channels to conduct its business. Strategically located stores in major cities makes easier for customers to avail short-term loans. Apart from the conventional brick-and-mortar stores, customers can also use company’s website, phone, or app to avail its services. The idea behind this multi-channel presence in the marketplace is to:
- Maximize the company’s outreach and capitalize on the “omnipresence” factor.
- Offer convenience and accessibility to customers no matter where they are and who they are.
- Fully utilize the reach of digital marketing through its website and app. This is particularly helpful to address the millennials’ market since they prefer digital transactions online over cash transactions at conventional stores.
- The Loan-On-Phone concept is specifically designed by Speedy Cash to service those customers who are not able to visit Speedy Cash’s stores due to various reasons. Loan-On-Phone specifically targets senior citizens, differently abled people, those with time limitations, individuals doing odd jobs at odd-hours and those who are hospitalized. Speedy Cash’s Loan-On-Phone service is also beneficial for people from areas who cannot access a company store easily, and are not digitally literate to transact through the company’s website or app.
By serving its customers through all the available retail marketing channels, Speedy Cash is able to tap into a broad customer base and maximize its outreach across the country.
Speed and Efficiency – The Success Factors
As the name indicates, Speedy Cash is all about speed, and efficiency is embedded in their speedy processing and disbursal of loans.
According to the company’s vision and mission statement, short-term, small dollar money requirement arises due to unusual circumstances. Quick cash is often needed by blue-collared workforce. If the cash is not available to them in time, it may result in dire consequences.
Realizing this, the company gives maximum importance to speed and efficiency and makes “Time is money” their service motto. Due to this, the company has gained a reputation as one of the most approachable, friendly, and sympathetic lenders in the country.
The loan products of Speedy Cash
The company offers a broad range of loan products to its customers:
These are short-term and small amount loans that are repayable on the next payday from the date of loan disbursal. Usually, the loan tenure is between 15-30 days. The credit is utilized for paying overdue bills, meeting an emergency, providing for a special occasion like a child’s birthday, or a health emergency. The interest burden on this type of loans is high because it is an unsecured cash advance and hence the lender’s risk factor is high.
Payday loan is a primary product of Speedy Cash, and also its growth engine. The company has a country-wide customer base in this category. Considering the urgent need for funds by the borrower, it ensures next-day disbursal of all payday loans.
This type of loan is similar to a payday loan, but the amount is larger and the repayment period is longer, spread over several monthly installments. For installment loans, the borrower decides the amount and repayment schedule, depending on their need, financial standing, and repayment capacity.
As the demand for installment loans has increased over the years, Speedy Cash has sharpened its focus on this segment and registered impressive growth.
Title Loans – These are loans given against the collateral of passenger cars. They have gained popularity because of the relatively easy-to-offer collateral, i.e., the borrower’s car. Its main advantage is that the lending company does not require the borrower to have a good credit score to qualify for a loan.
Speedy Cash makes it easier by doing away with the requirement of a clear title of the car. Moreover, the company processes title loans against cars of any make and any year.
Line of Credit – This is a longer-term loan with flexible borrowing and repayment terms. Under the line of credit, the lender approves a fixed upper limit of credit for the borrower, from which they can utilize any amount at any time.
The upper limit is sanctioned by the lender, depending upon the borrower’s credit rating, their average income, nature of the occupation, and other financial aspects. The interest is charged only on the amount utilized, and not on the entire line of credit. The repayment plan is also drawn by the borrower, based on their projected income.
Speedy Cash has made its line of credit offering more attractive by understanding the customer needs and accordingly, tailoring a better fit of the loan product. As an innovative strategy, the company allows lapses in payment of installments by stressed borrowers without any additional interest burden or penal conditions.
The Speedy Cash STORE – Many Services Under One Roof
The Speedy Cash store is like a one-stop shop for multiple financial requirements. It does not limit its activities to providing loans. Rather, it offers a broader and diverse range of financial services which include:
- Money Transfer – This is a simple, safe, time-tested way of money transfer that is still preferred by many over checks, cash or digital online transactions.
- Wire Transfer – Anybody can use the wire transfer facility from the Speedy Cash store to transfer money anywhere in the world.
- Prepaid Debit Cards – This is a great option to cash payments. Speedy Cash stores offer the facility of payment and transaction with the Opt+® Visa® debit card.
- Check Encashment – A person can walk into any Speedy Cash store with a check drawn on their name, and walk out with cash. This prompt and hassle-free service is offered at a nominal fee, though. It avoids the time-consuming visits to banks for check encashment.
- Cash for Gold – Gold is a precious asset. Anybody who has old, unused or broken gold in their possession and needs instant cash against it, has to just walk into a Speedy Cash store. Their gold will be valued as per that day’s London Fix retail value index, and they will be paid an equivalent amount in cash instantly.
The Speedy Cash store, located at a convenient city square or other strategic location, provides end-to-end solutions for manual and electronic money transfer, cash transaction, encashment of financial instruments such as a check, and cash against valuable assets such as gold.
The best part is that a person does not need to be a Speedy Cash customer to utilize these services. The company has an open door policy for all its service products at its stores.
Compliance, Certifications, And Adherence to National and State Laws
Speedy Cash has built its credibility on fairness, transparency and legitimate business practices. The company is a member of The Certified Financial Services Auditor® or CFSA®. CFSA® is a reputed certification for businesses in the banking, financial, lending, investment, and insurance verticals.
Speedy Cash strictly adheres to the clauses and provisions laid down by the Federal Equal Credit Opportunity Act. This Act prohibits lending agencies from discriminating against any loan applicant. The non-discrimination clause applies to race, color, religion, national origin, sex, marital status, and age factors.
The company also abides by the Consumer Credit Protection Act in totem. The compliance agency for this Act is the Consumer Financial Protection Bureau. The company’s business activities are well aligned with the requirements laid down by this regulatory agency.
Speedy Cash adheres to all state laws where it operates.
Safety and Security of Personal Information
The security architecture of Speedy Cash portal is robust and reliable. Its backend and frontend functions are encrypted, so all customer data like SS number, bank details, and personal information shared while filling the loan application is secure. A customer can give these details with confidence that it is pilfer-proof.
Speedy Cash also pledges non-transfer of personal details to any third party, which means that any personal data shared with Speedy Cash will never land in anybody else’s hands.
We want you to have all the information you need to make a decision about your personal loan. That’s why we’ve included reviews and information from other sources. We only use objective sources and will let you know if we think there’s an issue with the reviews.
Better Business Bureau
The BBB gives SpeedyCash an A- rating. There are 13 total reviews on the site. 100% are negative. There is a total of 139 customer complaints. The customers on the BBB website give SpeedyCash 3.23 stars out of five.
Most of the negative reviews focus on the high interest rates the company charged for personal loans. However, this seems like a case of buyer’s remorse. The customers would have to sign documentation stating that they understood the interest rate when they got the loan.
There aren’t any complaints against the company from the government. The BBB found that their advertising meets BBB standards.
Yelp tracks SpeedyCash reviews by the specific SpeedyCash location. There aren’t any reviews for the company as a whole. Generally, the reviews for the individual locations average around 3 stars out of 5. Most of the complaints center on customer-service issues. That means you may or may not have a similar experience. We recommend checking out the reviews for the SpeedyCash location you’re thinking of visiting to get a more accurate picture of their services.
Consumer affairs gives SpeedyCash a 4.2 out of 5. They base this rating on the 364 ratings submitted in the past year. Overall, there are 1,423 ratings regarding SpeedyCash on the Consumer Affairs website. The reviews from verified reviewers and verified buyers all mention how fast and easy the application was. They also universally praise the company for getting them their money quickly.
Many of the reviews praise the customer service that SpeedyCash delivers. This is true for people who called and those that visited a physical location. On the whole, this shows that SpeedyCash is a good option if you’re short on cash and need a personal loan quickly.
Based on all its findings and observations, this Speedy Cash review can confidently place it in the elite league of the country’s private money lenders.
Despite being in a business that is prone to mistrust and bias by its customers, Speedy Cash is one company that has earned a reputation for fair play and transparency. We noted that the Speedy Cash customers have genuine faith and trust in the company.
This trust is the best reward a private lender can get, far more valuable than its strong top-line and bottom-line. This is especially true for Speedy Cash, which walks the talk as far as its fair policies and practices go.
The popularity of Speedy Cash is not limited to a certain region or a cluster of states. The company is the borrowers’ favorite across the country. TrustPilot, an online rating portal, gives Speedy Cash an excellent 5-star rating based on actual customer feedback. Many of these are repeat customers.
To put it in a line, Speedy Cash does it in style, and with speed.