You may have already heard of Wonga, who predominantly provide short-term loans for personal circumstances. But Wonga have also launched Wonga for Business, a brand new way for businesses to approach financial solutions at their hour of need.
The main Wonga brand gets quite a lot of bad press for their high representative APRs (as used irresponsively, any short-term loan with high APRs can make financial problems worsen as more money is owed), but Wonga for Business works out to be 0.5% interest a week (AER 26%), which isn’t as high as their main product, and if you were to have a loan for a few weeks or a month, for example.
Loans can start at £3,000, and you can borrow up to £15,000 for existing customers – new customers can take out a loan up to £25,000 spread from 1 week to 1 year.
Learning more about the product, it becomes clear that the key reason why Wonga has released this complementary product is because usually with a traditional business loan through a bank or building society, there are quite a few hurdles to jump over when you apply.
WithWonga for Business, you don’t have to spend hours filling out paperwork, it tends to take 7-10 minutes online to apply for the loan and for their algorithm to work out whether you’re eligible for a loan and you can then receive the loan within one working day.
There are some worthy things to bear in mind if you are thinking about applying for a Wonga for Business loan:
- your business must be LLC or LLP, active for at least 3 years
- your business must be VAT registered
- your business must have a minimum £20K monthly turnover
- there must be a debit card attached to business account
- a guarantee is required
For many mums with a small business, you may well be exempt from applying based on the points above, but if you do satisfy the above and encounter cashflow issues from unpaid invoices etc.. and you need money quickly, you can find more infromation on the Wonga for Business site. It will never be everyone’s cup of tea, but at least the option is there.
