Lender in Focus 8.4: Cashfloat how repayments work and APR

Lender in Focus 8.4: Cashfloat how repayments work and APR
February 3, 2017 Lauren Howells

Cashfloat APR

If you want to compare Cashfloat with other lenders, the Cashfloat APR is a good place to start.

Before taking out any loan, you should make sure that you fully understand the costs involved. Whether your loan is a payday loan, a short term loan or an instalment loan, the APR can help you to see what you could expect to pay back in interest.

CashLady takes a look at the Cashfloat APR and repayment schedule to see what kind of deal consumers are receiving.

Payment schedule

Cashfloat offers both payday loans and short-term loans.

Customers are able to take out loans for between 1 and 4 months. The choices available with regards to the duration of the loan will depend on how much you want to borrow.

New customers are able to borrow from £200 to £500.

Existing customers can take out loans of up to £1,100.

For example, if you choose to borrow £200 or £250, you can select a loan term of either 1 or 2 months.

Opting to borrow £300 would result in a choice of between 1 and 3 months for your loan term.

£350 to £450 can be borrowed over 2 to 3 months and £500 can be borrowed over 2, 3 or 4 months.

The maximum loan value of £1,100 only has the option of a 4-month loan term.

Your repayment date will depend on your payday/s.

How are repayments taken?

Cashfloat offers its customers various ways to repay their loan. The simplest way to pay is via debit/credit card. Alternatively, you are able to make payments online or at any Barclay’s branch into the following account:

Barclays Account

Sort code: 20-78-98

Account details: 43469689

When you are making a direct payment, you should ensure that you state your name and loan reference as the reference.

If you find it difficult to repay your short term loan, Cashfloat is happy to rearrange your payment plan. They can temporarily freeze your loan and will try to come to a good arrangement with you, that will suit your financial situation.

How much will my repayments be?

Your repayment amount will depend on the term of your loan, the amount of money you have borrowed and your interest rate. When you apply for a loan, Cashfloat will inform you of how much your repayment/s will be.

Will I be charged less if I repay my loan early?

Cashfloat does not charge extra for people who want to repay their loan early.

In fact, repaying your loan early could actually save you money because you only pay interest for the amount of time you have actually had the loan.

Can I change my repayment date after I have taken out a loan with Cashfloat?

If you wish to amend you repayment date/s, you will need to telephone the loan underwriters on 02037571933 to discuss your options.

The underwriters will then need to send out a new contract.

Table of borrowing

The below table contains examples of what you could expect to pay back with Cashfloat, when your paydays are on the last working day of the month. (amounts checked 31st January 2017).

Cashfloat table of borrowing

What is the Cashfloat APR?

APR means Annual Percentage Rate.

By using the APR, direct comparisons can be made with other lenders’ interest rates. It is worth noting that although the representative APR is a good way to compare lenders, you may not get the representative APR when you apply for a loan. In fact, only a minimum of 51% of people who are accepted for a loan will pay this rate. The other 49% could be offered a different rate.

Cashfloat’s representative APR is 1116%.

How does the Cashfloat APR compare to the APR of other lenders?

CashLady has chosen some lenders at random so that you can compare them to Cashfloat:

The Money Shop

The Money Shop has a representative APR of 450%.

For example, if you took out a loan of £100 and paid it back over 3 instalments, you could expect to repay a total of £136.98.

Satsuma Loans

The representative APR of Satsuma Loans is 991%.

For example, You choose to take out a loan of £400, repayable over 6 months. You would pay back 6 monthly repayments of £126.40, making the total amount repayable £758.40.

Lending Stream

Lending Stream has a representative APR of 1272%.

For example, if you borrowed £200 over 6 months you would repay £391.68 in total.

Cashfloat daily cap

FCA rules state that a lender can charge a maximum of 0.8% per day in interest. This means that for every £100 you borrow, you will pay a maximum of 80p per day in interest.

Total loan value repayment cap

Cashfloat is an FCA-authorised and regulated firm and thus must follow these rules:

• Fees and interest per day must not exceed 0.8% of the amount borrowed

• Default fees must not exceed £15, although interest can still be charged after default (but only at or below the initial rate)

• Borrowers will never pay more in interest and fees than 100% of the total amount they borrowed.

As a result, you should never repay Cashfloat more than 100% of the amount that you borrowed from them.

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