Wonga Launches Instant Loans to Struggling Commercial Properties

Posted on 10 May, 2012 by MOVEHUT

Pay day loans have been sought by many people struggling to pay bills and debts until their wages are credited. Now, businesses that are struggling financially can apply for a loan of up to £10,000 that can be in their bank account within 15 minutes.

All sounds great, doesn’t it – instant cash in your bank account to pay wages, buy more stock and also treat the Mrs to those new shoes she has been after for a while! But the money will need paying back at some point within a year, depending on the terms of your loan, and Wonga is famous for its stratospherically high interest rates.

For example, if a business borrowed money on Wonga’s pay day loan rate of 4,200 per cent, then the commercial property company would owe thousands of pounds in interest alone. How is an already struggling company likely to pay that amount of debt off within a year? They would be lucky to scratch the surface.

Speaking of the Wonga for business loans, Errol Damelin, Founder and Chief Executive Officer, stated: “Young, entrepreneurial companies represent our best hope of a recovery, yet many are struggling because they can’t get quick access to the credit that they need to cope with everyday challenges, such as late payment by partners or customers.

“Others can use funds for great opportunities like getting a discount by paying cash, or buying in bulk, and then repaying early when the goods are sold.”

However, according to Wonga, the terms for the business loans will be different from the loans to individuals. Re-payments by firms will be paid weekly and interest will be calculated depending on the risk involved. Wonga state that weekly interest can start from 0.3 per cent.

With the announcement of two banks refusing to lend to commercial property businesses, it is no wonder that people turn to companies like Wonga and loan sharks to gain access to desperately needed cash to try and make their business a success.


Speaking of the lending issue, Errol added: “Having been involved in building a number of companies, I have first-hand experience of how important access to credit can be in staying afloat and growing.

“All our research and speaking to other entrepreneurs tells us that small business lending is broken and we intend to use our platform to offer a real alternative.”

To help ensure that a business can pay back the loan, initially loans will only be made available to companies that have been trading for over three years and have sales of over £20,000.

Would you use Wonga’s business loan service for an instant loan if you could not get a loan from a bank?




2 responses to “Wonga Launches Instant Loans to Struggling Commercial Properties”

  1. Fran says:

    Just want to say your article is as amazing. The clarity on your submit is just great. Please carry on the enjoyable work.

    • MOVEHUT says:

      Glad you liked the Wonga article Fran.
      We will do our best to make to posts enjoyable.
      We produce 4 articles a day, so please check back regularly.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants