Wonga Branches Out Overseas
Earlier this year, short term loans company Wonga began offering short term loans to Canada, South Africa and Poland and more recently has bought Spanish loan company Credito Pocket.
South African born entrepreneur Errol Damelin launched Wonga in 2007 and since then the company has leant over £2billion to over one million customers and has established itself as one of the UK’s fastest growing short term loans companies.
They have grown so fast largely due to the UK banks’ persistent reluctance to freely provide loans anymore. The usual procedure of a meeting with the bank manager weeks down the line with a comprehensive, written business plan has been upstaged by Wonga’s 15-minute promise.
Wonga have reassured their critics that they continue to work on the system that assesses loan requests and many people are still being declined credit.
In addition to their personal short term loans Wonga have also begun lending, over a one year period, to small businesses. It’s business loans range from £3000-£15000 so generally just for a quick fix of cash to purchase stock for instance.
In the UK, Wonga have begun to lend to websites on a ‘pay later’ understanding, essentially to provide online consumers to make purchases immediately but pay an upfront transaction fee followed by three monthly payments. By branching out into the realm of foreign lending, Wonga will have to tread carefully as the rules and regulations vary from country to country. Wonga’s reluctance to set up in France or Germany is indicative of this cultural variation as it has been statistically proven that residents of those countries are less likely to borrow money.
The most common criticism to come against Wonga is with regards to their astonishing interest charges. While it is marketed at a reasonable to low 1% per day, that works out at an extortionate 4214% APR. Wonga defends this as a misleading statistic and claims they cannot be compared to banks.
Wonga are available to be contacted 24/7 – being the only loan company genuinely open 24/7 and they usually make a decision about your application in seconds and, if approved, transfer the money within 15 minutes. For more information visit www.wonga.com or to call direct, visit our Wonga phone number page.
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