Wonga borrows £25m (wonder what the APR is on that?)
The FCA came down hard on payday loan companies, putting all manner of restrictions on them and issuing a number of fines and penalties. Wonga were hit hard, and tried a variety of things to try and soften their image.
Things haven't been working out too well for the finance-company, and now, with irony that won't be lost on many, they've borrowed money to try and get themselves back on track.
The payday lender has added almost £25m of debt to their balance sheet, with Sky News saying that Wonga secured the funds from one of their shareholders. While many of the smaller payday loan companies are ceasing trade, or selling off their assets, these are pretty desperate times for this area of the market.
According to Sky, this money will help Wonga have funds to create new loans and provide working capital. This is all an attempt to get back into turning a profit.
In a statement, a Wonga spokesperson said: "We said when we announced our full-year results last year that we might look to raise debt funding in 2016 as part of our normal capital management and to support the growth of our loan book."
"Following positive talks with a number of parties, we have successfully secured a €30m (£24.2m) debt facility."
This all follows Wonga's announcement that they had made a loss of over £37 million, back in 2014. Millions in compensation to customers, settlements to regulators, and restructuring costs, saw losses and the axing of over 300 jobs.
One of the biggest problems faced by Wonga, is that of their image. They were fined millions of pounds after it transpired that they'd been sending threatening letters to customers from law companies that didn't actually exist. The level of hard-ball being played by the company means that there's going to be little sympathy for them as they struggle.
Following the FCA's price caps on payday loan companies, it is thought that most of these companies will go out of business.