Wonga set to write off £220 million of customer debts

After revising their affordability checks the pay-day loan company have announced that 330,000 existing debtors will have their debts written off. This announcement comes after Wonga has been in talks with the Financial Conduct Authority (FCA).

The new requirements should see more people being refused loans due to lack of financial suitability.

Also because of new regulations a further 45,000 customers will not have to pay any interest on the loan they received, they will just be required to pay back the original lump sum. Any debtors that these changes affect will be notified by Wonga before the 10th October.

Despite being advertised as a pay-day loan company the organisation also offer loans to a range of businesses.

Some small business owners struggling with their finances can be convinced by loan companies such as Wonga to apply for a loan despite the risks.

Financial stability is possibly the most important goal for an SME which is why it is important, if a loan is required, to apply to financial sources appropriate for your business.

Finding a loan specifically for a start-up or micro business would be more beneficial for an SME, the loan would be designed to be enough money to cover the investment being sought and without an overly high interest rate.

If a loan is taken out it is important to ensure that repayments are planned for, along with any other outgoings of the business. Small companies can often find it difficult to organise their finances, with a range of different tasks to be taken care of and an often small workforce, money management can sometimes take a back seat.

MCC Accountants offer a range of services including financial control which includes management of accounts production and review, profit and cashflow forecasting, working capital management and capital funding. If you would like more information on the financial services that MCC Accountants offer please contact us.

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