Cash loans online have upended the payday loan business. Cash loans online have changed the payday loan industry in a number of truly significant ways.
Broader Spectrum of Consumers
The most significant way in which cash loans online have altered the payday loan business in Canada, the United States and elsewhere is that it permits a broader spectrum of consumers to take advantage of this type of financing. Prior to the widespread availability of payday loans via the Internet, there existed a group of consumers that were unable to take advantage of this type of financing.
This cohort of consumers consisted of people who were homebound, or at least unable to readily travel to a payday loan outlet in the brick and mortar world. This included people residing in smaller communities that simply lacked a payday loan provider in proximity to a consumer in need. These people can now access payday loans via online resources.
Quick Approval Process
With the expansion of more cash loans online resources, the approval process for this type of financing is greatly enhanced. People in need of immediate cash are able to obtain approval of a loan application in a matter of minutes in some cases.
This type of virtually immediate loan application approval was not possible when most payday loan providers were based primarily in the brick and mortar world. Indeed, the approval process sometimes took 24 to 48 hours before the broad expansion of payday loan solutions on the Internet.
Regulation of Payday Loans
The growth of the Internet has given rise to a regulatory puzzle that involves payday loan companies that technically are located on Native American tribal territory. These entities, while operating on the Internet and yet located in tribal lands, contend they are not subject to state or U.S. federal government regulation associated with cash advance loans of this nature.
Identifying the location of a cash loans online company is important. Identifying the location allows a person interested in obtaining this type of financing the ability to make an educated decision. Determining the location of an online cash lender likely requires using a third party resource to confirm.
On the one hand, a company located on tribal territory may be more flexible in its lending practices. On the other hand, a company on tribal lands may not be interested in complying with rules and regulations designed to protect people who apply for and obtain a cash loan on the Internet.