SpotLoan.com
($$) There is a small number among the clients who do business with a cash
advance loan center who are occasionally not the most trustworthy
people in the land. Because of the fact there is no credit check and
only basic checking of the identity of the borrower, this business is
susceptible to fraud. When the cash advance loan center is the victim of
fraud or a loss from someone using a different person’s identity, often
it is a straight loss. The center’s insurance policy may or may not
cover the loss, but too many losses will get them dropped from the
carrier. Obviously, this is not to say that the majority of the clients
are problematic.
In the lending industry there is a theory called the “layering of
risk.” What this means is that each item in the loan decision process
has a level rating to it. Just a few of the things being addressed are
is there any collateral (down payment), or does the center have any
loaning and repayment history, credit score and similar things? Since
the loan center does not run a credit check, can’t take collateral, and
may or may not have history with the borrower, the layers of risk are
high. The cash advance loan center has to figure this layering of risk
into its pricing schedule.
Easy Loan Site : SpotLoan.com
SpotLoan.com
