It is not always easy to manage money, particularly nowadays when everyone still seems to be feeling the after effects of the credit crunch. Unfortunately, borrowing money comes at a price and quite often, those with a poor credit rating have very little options available to them. Payday lending companies can often provide access to those who can’t obtain credit elsewhere. Pay day companies provide short terms loans to lenders, which are due for repayment on the next pay date.

The interest rates are higher with payday lending companies are they are with other financial organisations, but they are designed to be paid back within the month. Other types of loans tend to have a repayment date of 2 or more years, which makes the interest rates lower. Problems can arise when lenders take out loans, which they don’t have the means to pay back. In turn, they end up rolling the loan over for several months, accumulating more interest in the process. This is not what the loans are designed for; they were created to deal with short term unexpected bills.

Wonga are a payday lending company who have experienced a lot of growth and success since they launched in 2007. Founded by entrepreneur Errol Damelin, Wonga are well known in the UK, mainly as a result of their memorable television adverts, but they have also enjoyed significant growth internationally.

The nature of payday loans offered by Wonga are that the individual chooses how much they wish to borrow and for how long, and Wonga will decide whether the lender can afford to pay the loan back. Although not as strict as lending money via banks or other financial institutions; there is still credit checks carried out to determine suitability.

Now currently operating in South Africa, Canada and Poland; Wonga also recently secured small Spanish lender, Credito Pocket which became Wonga Spain. This international growth has exceeded expectations and lending has become more flexible, while still maintaining levels of affordability.  In addition to this, the growing payday lending company have also taken on BillPay, which is a German payment firm which offers financial services to both retailers and consumers in a number of countries, including Austria, the Netherlands and of course, Germany. With BillPay, consumers can make low payment instalments, with the merchant gaining a sale which would not have been possible. This service opens up choices for both the shopper and merchant; with the shopper able to buy the product right then and there, but spreading the cost. There are also further plans to start offering loans to small businesses, as currently they are only available to individuals.

It looks highly likely that Wonga will soon become a household name across the globe, similar to that of the reputation they have in the UK. Although tighter restrictions are now in place in terms of lending, Wonga payday loans offer an easier way for those on low incomes to access funds quickly and without hassle.

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