2014 Lender Lists:

Are the Peachy Loans and Sunny Loans Better Than Wonga?

Wonga has been the powerhouse in the short term loan sector for several years now. From researching an extensive range of current UK products, it is the Peachy Loans and Sunny Loans that do look to be their biggest threat. This will be explored further, although we will initially address what they (and everyone else) is up against today. The launch came in 2007 when you could not receive a loan with any kind of the level of flexibility that they offered back then. Picking out the repayment date that allows you to pay for that period only was innovative at the time, but this has since been adopted by most short term lenders.

Being able to select what you wish to receive from just £1 onwards is a feature that has not been imitated by their rivals. Other qualities include 24/7 operation, fast funding and sophisticated technology that automates the transfer process. They are the football kit sponsors of Blackpool and Newcastle (the Hearts deal has ended). The TV ads are shown extensively and they also sponsor many TV shows. They rarely escape the attention of the media, they have a good search engine presence and have an army of websites promoting them through their affiliate program. They process a reported 10,400 leads daily and are generating consistent profits, despite the competition being fiercer than ever.

They have now expanded into various international destinations (Canada, Poland and South Africa). So how can anyone compete with Wonga and surpass them? The Peachy loans and Sunny loans do look to have the most potential on this front, but are they better? The standout feature with each lies in their flexibility. Rather than 1 to 30 days, Peachy runs from 5 days to 5 months and Sunny has a larger span of 3 days to 5 months. With promo codes attached, Peachy is priced at 1% daily. Wonga was the same at 1%, but they have now removed their voucher box and so you now pay much more with them (update: they have added the box again).

Sunny sits below 1% and so they are the cheapest lender of the pack. They additionally provide loyalty discounts once you have borrowed several times, they don’t charge late fees and an expensive TV ad campaign has helped to spur on their growth. This is also the most experienced company since it previously went under the guise of 1 Month Loan that started back in 2004, although Think Finance Inc only took control in 2011. Peachy has emerged as one of the top lenders found on Google, they have attracted a massive social following and they are open for a few extra hours over the weekend compared to Sunny.

Both of these companies are open 7 days a week (not 24/7) and each has took on trade association memberships. They may not have developed the same advanced technology on the application stage, but with being open daily they process applications quickly and deliver cash through FPS transfers. If I was a first time user and had the pick of all three then I’m not sure who I would head to! I would certainly be happy to use either one of them. With the international expansion and added focus on Everline business loans, perhaps the current short term dominance may shift and Peachy/Sunny may create their own powerhouse brands.