As a loan company, Money Now gets asked frequently about the financial services we offer our customers. In sum, we offer payday loans, installment loans, cash advances, check cashing services, and title loans, all of which offer our customers quick access to cash when they need it the most, such as in emergencies or to pay bills until they get paid again. We have multiple locations across four states — Mississippi, Alabama, Tennessees, and Kentucky — in order to better serve you.
The idea of lending money to others when they need it is nothing new. In fact, lending goes back probably to the dawn of civilization. In this blog post, we’ll explore the history of lending, and see how that applies to us today. Contact Money Now for all of your quick cash needs today!
HISTORY OF LENDING
Humans, for the most part, live in communities and rely on each other to survive. As such, when someone runs out of something, you ask your neighbor to borrow it. You will pay them back with a reciprocal good at a later time, you may pay them back with a different good, or you may pay cash for that good. This is how the system has always worked in the trade and barter system, since the beginning of time. In fact, this system worked quite well until civilizations began to grow. Then, another method of payment was needed (money) and another method of trading was needed (borrowing).
The ancient civilization of Mesopotamia brings us the first “payday” loans, albeit in a different format. Here, farmers began to borrow seeds, knowing that a single seed would bring forth an abundance of grain to trade later, or to use as repayment. Animals were loaned as well, knowing that they would have babies as payment. In Mesopotamia, King Hammurabi in his laws (known as the Code of Hammurabi) put a value to silver and the amount of interest that could be charged on that silver in 1754 BC.
Ancient Greece and Rome continued with these payday loans. Mainly, farmers would borrow against their future crop production in order to have the seeds to plant the crops. Once harvest came, they would repay the loan and often ask for another loan in advance of next season. This form of lending continued into the new era; however, when Christianity came about, rules were set in terms of lending, with Christians being forbidden to charge interest and Jews only charging interest to non-Jews.
Throughout the Middle Ages, lending took place in various forms, with sometimes labor being substituted for payment. However, it was always individuals who loaned money until the Medici family in Italy in the 1500s formed merchant banks. They also introduced insurance and underwriting loans. England formed the first central bank in 1690 with the Advent of the Bank of England out of the need to finance their king who was battling against the French.
THE MODERN LENDING ERA
In the early 1800s, the first savings and loan institutions began to be established, which not only allowed more people to get loans, but also began to bring standardization to lending. However, lending was still very much based on character, meaning you were judged on if you were “worthy” to pay the loan back or not. This left many Americans struggling who did not quite meet this criteria. With the Industrial Revolution in full swing, many people needed access to money to grow their businesses. Banks with lending practices emerged and grew in the latter half of the nineteenth century.
The stock market crash and the closing of banks put a spotlight on how lending and banking had to change. Once the Great Depression was over, the government stepped in, putting many laws and regulations in place in order to protect consumers. Mortgage lending was now subject to regulation as well so more people could get a home and The Truth in Lending Act was passed in 1968 to ensure consumers knew everything about the loans they were getting and to help regulate the credit bureaus.
Today, we now have many forms of credit, from credit cards to loans and more. Consumers have equal rights and opportunities to credit, as well as protection against discrimination.
CHOOSE MONEY NOW AS YOUR SOURCE OF QUICK CASH
Money Now offers a variety of financial instruments in four states (Mississippi, Alabama, Kentucky, and Tennessee) in order to better serve our customers. We recognize that everyone’s financial circumstances are unique, which is why we offer different services to meet your specific needs. From cash advances and payday loans to installment and title loans, our friendly team can explain our financial products and answer all of your questions. Even if you have bad credit, many of our products do not require a credit check. Contact us today to get started!