COLUMBUS, Ohio, Sept. 24, 2013 /PRNewswire-iReach/ -- In a February article in the New York Times, John Hecht of the investment bank Stephens Inc. predicted that Internet payday loans would comprise 60 percent of total payday loans by 2016. While some critics see this trend as payday lenders attempting to avoid state regulations, others, such as cashadvanceusa.net CEO Mark Miller recognize a more positive motivation.
(Photo: http://photos.prnewswire.com/prnh/20130924/MN84144)
"The Internet is the marketplace of the future," stated Mr. Miller. "If you look at almost any industry you'll see this type of upward trend." He's right. In fact, U.S ecommerce sales increased nearly 13 percent from $256 billion dollars in 2011 to $289 billion in 2012. Jessica Kril, a researcher from statista.com, cites a 2012 e-commerce market forecast that "projects online retail revenue in the U.S. reaching $361.9 billion dollars by 2016." That's up from $186.2 billion dollars in 2012, which is a 94 percent increase.
Though not necessarily based on scientific research, Miller has his own idea of what is driving this growing trend, at least in the online loan marketplace. "Applying for a loan over the Internet offers a prospective borrower privacy, convenience and competitive pricing, which leads to lower costs," said Miller. "Look at it this way. A person, who uses Cashadvanceusa.net to apply for a loan, would literally have to visit hundreds of brick and mortar locations and complete hundreds of paper applications to access the number of lenders they can find within minutes on our site, by simply filling out one fast and easy application form."
He joked that they also save money on gas, which is actually a fairly significant savings these days. Mr. Miller continued, "Also by applying with multiple lenders and receiving multiple offers, the borrower has the opportunity to compare the costs, fees and terms of the loans and choose the best one. It also influences lenders to create better loan products since they know they are competing with hundreds of other lenders."
"We're not lenders. We're facilitators. Our job is to make it easier for those who need emergency cash and have limited options due to credit issues, etc. find willing lenders," stated Cashadvanceusa.net CEO, Mr. Miller.
Peter Barden, a spokesman for the Online Lenders Alliance summed it up well in a recent Miami Herald article, "Most consumers don't have the ability to get $500 or $600 in an emergency through their banks or credit unions," said Barden. "Credit card limits have been reduced, equity loans have been reduced, so people are increasingly looking to alternative financial services companies for short-term credit. And like with any other industry right now, they're looking online."
So it seems that this growing trend is not necessarily a way for online payday lenders to escape greater regulation, but instead an intelligent business strategy to reach those who need their product and prefer to access it conveniently by the Internet.
For more information or to apply for a payday loan, visit http://www.cashadvanceusa.net/
Media Contact: Mark Miller, Cash Advance USA Ltd, (512) 571-3828, info@cashadvanceusa.net
News distributed by PR Newswire iReach: https://ireach.prnewswire.com
