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Kelly Capps of The Loan Hub tells Emily Moore that there are reasons for optimism in the year ahead – for businesses wanting to invest in new assets as well as couples wanting to fund a wedding or holiday
WHEN it comes to financial matters, there has been very little good news for Islanders recently.
Indeed, as interest rates began to climb at the end of 2021 – causing many homeowners to experience a sharp rise in mortgage repayments – and the price of everything from food to energy started to increase, the pressure on people’s budgets has been greater than ever.
And while many householders are still feeling the squeeze, there is, says the owner of one local lending company, some reason for optimism in the year ahead.
“The rates of interest for motor and asset finance have dropped significantly since 1 October 2024 and are now the lowest I’ve seen them since 2021,” said Kelly Capps, who founded The Loan Hub in 2022 after working in the industry for more than a decade.
This, she says, combined with the fact that the firm’s lending partners have dropped their arrangement fees, means that “the cost of borrowing for motor and asset finance has become a lot cheaper”.
And Islanders, she says, have been quick to capitalise on the situation, leading not just to increased lending deals but also a new business venture for Kelly and her husband, Darrell.
“Last year was a really good year for motor finance,” she said. “Because vehicles are depreciating assets, a lot of people prefer to take out finance for such purchases rather than invest savings in something which is losing value.
“Interestingly, though, it is not just people looking for family cars who we have been helping. We have seen a lot of commercial customers, keen to expand their fleets, coming to us. In fact, the demand for such vehicles has been so high that in February last year, we launched Capps Van Sales, sourcing commercial vehicles from the UK and bringing them to the Island.
“Initially, we thought this would just be a small sideline, but the demand has been so great that Darrell is now focusing almost entirely on that side of the business.”
So successful has Capps Van Sales been, adds Kelly, that the couple are now expanding the business, taking on their own premises, which will enable them to “continue importing vehicles on demand while also carrying some stock in the Island”.
But it is not just in vehicles that business owners are investing, with The Loan Hub supporting finance arrangements for a range of purchases.
“It’s great to see so many people growing their businesses and investing in all sorts of assets from agricultural equipment to beauty technology,” she added.
While business owners may be expanding their enterprises, Kelly is, unsurprisingly she says, also seeing demand from Islanders keen to consolidate their debts.
“Although interest rates for motor and asset finance have come down, rates of interest on credit card repayments are still very high,” she said. “A lot of people may have pushed the boat out over Christmas or used their credit cards to tide them over the festive period, and now they are struggling to meet the repayments. Consolidating these debts into a personal loan can help them to save money, while also structuring their finances, so that they only have one monthly repayment to make.”
And while some people may be taking out loans to consolidate already accumulated debt, others, says Kelly, are seeking support for future plans.
“Our motto at The Loan Hub is borrowing made easy, and we are keen to help people fulfil their dreams and aspirations,” she said. “To this end, we have received a lot of queries recently from people who are thinking about what the year has in store and are keen to borrow money to fund a holiday or wedding. Whatever the reason that people are considering borrowing, we are here to try to help.”
