Wonga, the payday loan company, has opened up its services to the business market, stating they will make loans available to firms within 15 minutes. Interest rates start off at around 0.3% per week, rising to 2% per week for businesses with poor credit records. Set up fees are between one and five per cent of the loan value.
Stephen Pegge, director of small and medium sized markets at Lloyds TSB Business said in The Mail on Sunday, “One concern we have is that if a firm needs finance this urgently it could be a real sign that there are serious problems. If so then taking this option could lead to business owners digging themselves into a bigger hole.”
There are other, more flexible, options out in the market place and the best advice would be to speak with your bank manager or finance broker to see what option is best for the business, as short term deals do not always have to be expensive.