I have to express my real concern from what I am hearing in meetings lately that small business owners seeking loans could be lured by the new Wonga campaign, unaware that there are other, less expensive, options open to them.
Sadly, many of those less expensive lenders – like ART – do not have the marketing budget to gain so wide a recognition so quickly.
The whole proposition is a mystery to me. Why is Wonga spending so much money advertising a service (if you want to call it that) looking to support businesses with loans of up to £10,000 against personal guarantees. Wonga is only proposing to lend to businesses that are over 3 years old with turnover in excess of £20,000 per month. If a small business has reached those levels and needs Wonga – with interest rates of between 100% and 2,000% – it is not looking very hard for alternatives and must be close to liquidation.
I would urge businesses to take the time to shop around and find out about the full range of options open to them. Try looking on the excellent new website www.businessfinanceforyou.co.uk for example. Or see the articles below, reproduced with kind permission of the Birmingham Post.July 12, 2012 12:53 pm