Creditspring is reporting an increase in demand which they are attributing to the rapid increase in the cost of living, which is expected to continue in 2023. Creditsrping said that during the last 12 months, 260,000 borrowers sought credit on the platform, with “members” increasing by 100,000 in the last 12 months.
The FCA-regulated online lender Creditspring is described as an affordable credit subscription service. Creditspring provides short-term credit for near-prime borrowers whose credit files are thin or in need of repair. Creditspring says that many of their users struggle to access affordable credit, with estimates by PwC that 2o million people are having difficulty accessing credit in the UK.
Since its launch, Creditspring reports that it has lent over £100 million, with £67 million of within the last 12 months. Creditspring claims that on average, its borrowers are saving £118 each year on borrowing costs.
The lenders’ subscription model is a fixed-cost credit solution that offers customers access to two advances per year with capped costs, and no hidden charges.
Neil Kadagathur, co-founder and CEO of Creditspring, commented:
“Given rising costs and falling value of wages, UK households have become hugely reliant on credit to get by. But they need an affordable option that protects them from debt and unscrupulous high-cost lenders. With the cost of borrowing rising at the time when people are increasingly forced to turn to credit, the lending industry needs to do much more to provide more affordable alternatives to those in need. Clearly, predatory lenders have no place in the industry and need to be stamped out but all lenders need to ensure they’re improving transparency so borrowers can evaluate the true cost of borrowing.”
Kadagathur says they have a responsibility to help people reduce their risk of falling into a debt spiral.
Creditspring raised over £8 million on Seedrs last summer.