Cashfloat

Company Profile and United Kingdom Background

Cashfloat, a trading name of Western Circle Ltd (Company No. 07581337), has established itself as a significant player in the United Kingdom's digital lending sector since its consumer brand launch in 2014. Incorporated in 2011, Western Circle Ltd operates from its registered address in London, demonstrating a firm commitment to the UK market.

As a fully authorised and regulated direct lender, Cashfloat holds full permission under the Financial Conduct Authority (FCA), with FRN 714479, specifically for granting unsecured credit. This authorisation is crucial, assuring UK consumers that the company operates within strict regulatory frameworks designed to protect borrowers. The business model is centred around online direct lending, catering to a broad spectrum of borrowers, including those with varying credit histories. Their proprietary decision engine leverages sophisticated credit data analysis and AI-enabled affordability checks to assess loan applications responsibly.

Leadership at Cashfloat includes key executives such as Ofer Valencio Akerman, who guides AI and strategic development, Cheryl McKenzie overseeing underwriting, and Mark Neighbour managing collections. Peter Kimpton leads operations, further solidifying the company's operational backbone in the UK and European markets. This management structure underpins Cashfloat's operational efficiency and adherence to responsible lending practices, which are paramount in the high-cost short-term credit market.

Comprehensive Loan Products, Rates, and Terms

Cashfloat offers two primary unsecured loan products to United Kingdom residents: Payday Loans and Small Personal Loans. Both are designed to provide financial assistance for short-term needs, albeit with different typical amounts and repayment structures.

Payday Loans

• Amounts: Ranging from £300 to £1,500.
• Duration: Repayable over 3 to 9 months.
• Annual Percentage Rate (APR): The representative APR is 611.74%, though the range can span from 295.58% to 1,294%. This high APR reflects the short-term, high-risk nature of these loans. The fixed rate per annum is typically between 69.75% and 185.39%.

It is important for borrowers to understand that while the representative APR appears high, FCA regulations cap the total interest and fees payable on high-cost short-term credit at 0.8% per day, with a total cost cap of 100% of the borrowed amount. This means a borrower will never pay back more than double what they initially borrowed.

Small Personal Loans

• Amounts: From £500 up to £3,000, with most common amounts between £1,000 and £2,500.
• Duration: Repayable over 6 to 9 months.
• Annual Percentage Rate (APR): The representative APR is 295.58%, with the range falling between 112.50% and 311.95%. The fixed rate per annum is generally between 32.30% and 112.50%.

All loans offered by Cashfloat are unsecured, meaning no guarantor or collateral is required. This simplifies the application process but may contribute to the higher interest rates compared to secured lending.

Fees and Charges

Cashfloat maintains transparency regarding its fees:

• Origination/Processing Fees: There are no upfront fees for processing a loan application.
• Late Payment Fee: A charge of £10 applies for a missed instalment on payday loans, and £15 for small personal loans. Interest continues to accrue on the outstanding balance during this period.
• Early Repayment: Borrowers face no penalty for repaying their loan earlier than scheduled. In fact, early repayment reduces the overall interest payable, offering a financial benefit to those who can clear their debt quickly.
• Cashback Program: Cashfloat offers a unique incentive where customers can receive 5% of their interest back. Eligibility requires opting into the program, paying at least £50 in interest, making all payments on time, and completing a post-loan survey. This initiative rewards responsible borrowing behaviour.

Application Process, Technology, and User Experience

The entire application process for Cashfloat loans is conducted online through their website, cashfloat.co.uk. The company does not operate physical branches, aligning with its digital-first strategy. While Cashfloat does not offer a dedicated mobile application, its website is fully responsive and optimised for mobile browsers, ensuring a seamless user experience across various devices.

Onboarding and Know Your Customer (KYC)

Applicants are required to provide standard information and documentation to comply with UK regulatory requirements and for identity verification. This typically includes proof of UK residence, confirmation of being aged 18 or over, details of a valid UK bank account, official identification, and comprehensive information regarding income and expenditures. Cashfloat also offers optional integration with Open Banking, allowing for quicker and more accurate income verification, which can streamline the assessment process.

Credit Scoring and Underwriting

A core differentiator for Cashfloat is its proprietary AI-driven decision engine. This advanced system integrates data from credit bureaus with an internal affordability matrix. It also utilises Open Banking data, when provided, to build a holistic financial picture of the applicant. While automated decisions are common, borderline cases may undergo a manual underwriting review to ensure responsible lending and to offer loans where suitable, even to those with less than perfect credit scores. This blend of technology and human oversight is designed to make fair and informed lending decisions.

Disbursement and Collections

Upon approval, Cashfloat aims for swift disbursement. Funds are typically transferred via bank transfer within one hour of approval, provided the application is approved between Monday and Friday by 4:30 pm. This rapid funding is a key feature for individuals facing urgent financial needs.

For collections, automated direct debits are the primary method. Should a borrower encounter payment difficulties, Cashfloat's collections team steps in to offer support. The company provides hardship support options and an "Easy-Start" feature, which allows for a one-month payment extension at no additional cost. This approach reflects a commitment to treating customers fairly, especially during challenging times, in line with FCA guidelines.

The company also maintains a significant digital presence beyond its main website, including a presence on LinkedIn and an active blog offering financial guidance. Customer service is available via phone and email from Monday to Friday, 9 am to 5:30 pm, with a 24-hour email response service level agreement.

Market Standing, Regulatory Compliance, and Customer Feedback

Cashfloat operates within the highly competitive and closely regulated UK high-cost short-term credit market. It stands among the top ten lenders in this segment, demonstrating a notable market share and operational scale. Its nationwide UK coverage has allowed it to serve over 150,000 customers, particularly targeting individuals in lower-income and non-prime credit tiers who may have fewer traditional borrowing options.

Regulatory Compliance

The company's robust regulatory framework is overseen by the Financial Conduct Authority (FCA) under FRN 714479. Cashfloat strictly adheres to the FCA's Consumer Credit Sourcebook (CONC) requirements, which dictate responsible lending practices, affordability assessments, and fair treatment of customers. Furthermore, Cashfloat is a member of the Vulnerability Registration Service and is registered with the Information Commissioner's Office (ICO) under registration Z3305234, ensuring data protection compliance.

While no public FCA enforcement actions have been levied against Cashfloat, some Financial Ombudsman Service (FOS) complaints regarding affordability assessments have been upheld. In response, Cashfloat has reportedly reviewed and enhanced its underwriting procedures, demonstrating a commitment to continuous improvement and consumer protection.

Competitive Landscape and Differentiation

Cashfloat competes with other prominent UK lenders and brokers such as Lending Stream and those intermediated by platforms like CashLady. Its differentiation strategy hinges on several factors:

• AI-enhanced Underwriting: Their advanced decision engine allows for nuanced risk assessment.
• Cashback Incentive: The 5% interest refund program encourages responsible repayment.
• Transparent Pricing: Clear communication of rates and fees.
• Customer Support: Emphasis on supportive service, including hardship provisions.

The company has shown a steady growth trajectory, expanding its product range and continuously integrating advanced AI technologies to scale its operations responsibly, with a focus on mid-2024 to mid-2025 for further AI enhancements across processes.

Customer Experience and Reviews

Customer feedback for Cashfloat is generally positive, although some issues are noted:

• Reviews.co.uk: Scores 4.8 out of 5 stars from 799 reviews (November 2024).
• Trustpilot: Over 250 reviews with 70% being 5-star (August 2024).
• Cashfloat's Own Site: 3.9 out of 5 from 359 reviews (June 2025).

Common issues raised by customers often revolve around the high APRs inherent in short-term credit, and occasional disputes regarding affordability checks, as reflected in the FOS cases. However, testimonials frequently highlight the speed of funding for emergencies and the helpfulness of their customer service. This indicates a mixed but generally favourable perception among its user base, with rapid access to funds being a key driver of positive sentiment.

Practical Guidance for Potential Borrowers in the United Kingdom

For UK residents considering a loan from Cashfloat, it is crucial to approach borrowing with careful consideration and a clear understanding of the terms involved. As a financial expert, the following practical advice is offered:

• Assess Your Need: Only borrow if absolutely necessary for an urgent, unavoidable expense. Short-term loans, by nature, carry higher costs than conventional credit and should not be used for long-term financial problems or discretionary spending.
• Understand the Costs: While Cashfloat is transparent with its APRs, fully grasp the total amount you will repay, including interest and any potential late fees. Use their loan calculators to model repayment scenarios. Remember, the FCA caps total costs at 100% of the principal borrowed.
• Affordability is Key: Cashfloat's underwriting process focuses heavily on affordability. Be honest and thorough when providing your income and expenditure details. Only apply if you are confident you can comfortably meet all repayments without undue financial strain. Consider using the Open Banking integration for a quicker and potentially more accurate assessment.
• Repayment Strategy: Plan your repayments carefully. The "Easy-Start" feature offers a one-month extension at no extra cost if you face immediate difficulties, but it should not be relied upon as a primary repayment strategy. Aim to repay as early as possible to reduce the overall interest paid, as there are no early repayment penalties.
• Review Customer Feedback: While Cashfloat has generally positive reviews for speed and customer service, be aware of the common issues raised, particularly concerning affordability assessments. This reinforces the importance of your own diligent assessment of your ability to repay.
• Compare Alternatives: Before committing, explore all available credit options. For those with good credit, traditional bank loans or credit cards might offer significantly lower APRs. For short-term needs, consider credit unions or even discussing payment plans with bill providers.
• Regulatory Protection: Remember that Cashfloat is FCA regulated, providing a layer of protection. If you encounter issues, you have recourse through Cashfloat's complaints procedure and, ultimately, the Financial Ombudsman Service.

Cashfloat offers a valuable service for those in the United Kingdom needing fast, short-term financial solutions, particularly when other avenues are unavailable. However, due to the higher costs associated with such loans, responsible borrowing, meticulous budgeting, and a clear understanding of the terms are paramount to avoid potential financial difficulties.