An alternative to Sunny Loans

Sunny Loans are one of the many direct payday lending companies that have fallen into administration over recent months and years. If you are looking for loans like Sunny Loans, we can help. Although Sunny Loans are no longer offering new loans to borrowers in the UK looking for short-term loans, Moneyboat are still very much up and running, offering great funding options to people seeking emergency cash.

Who are Sunny Loans?

Sunny was a trading name of Elevate Credit International Limited and had some 50,000 borrowers on its books at the point at which it fell into administration. Sunny Loans offered loan values as high as £2,500, and borrowers could repay in up to six instalments. Elevate Credit International used to offer short-term loans under two other brands: 1 Month Loan and Quid.

What happened to Sunny Loans?

Sunny was put into administration in summer 2020. KPMG were called in to take over the business and recoup as much money as possible from the failing lender to compensate even a small proportion of the mis-selling claims being made against the company.

The exact issues that led to Sunny’s failure aren’t completely clear, but it could have been linked to the relatively high value of the loans Sunny would offer to borrowers, which increases the risk both for the lender and the borrower. The higher the loan value, the more potential the loan will result in further financial problems for the borrower if they can’t afford to repay.

Sunny was regulated and authorised by the FCA, but failed to take appropriate precautions against mis-selling. It is vital that short-term high-cost lenders carry out thorough credit history and affordability checks before approving applications to prevent mis-selling from taking place.

What types of loans did Sunny Loans offer?

Sunny Loans offered different types of loans. You could borrow up to £1,000 to be repaid over a maximum of 6 monthly instalments. Then they would also offer up to £2,500 repayable over periods of up to a year.

How much did Sunny Loans cost?

Sunny Loans charged the maximum daily interest rate allowed in the short-term loans industry of 0.8% per day. Its representative APR was a whopping 1,293%. This means that taking out a short-term loan with Sunny over an entire year would have cost the borrower 1,293% of their loan value including all interest and charges.

Is Moneyboat a good alternative to Sunny Loans?

Anyone looking for an alternative to Sunny Loans can consider Moneyboat as an excellent option. Borrowing short-term loans with us will cost you less as we only charge 0.79% daily interest. Our loan values and terms are flexible, so you can borrow the same amount as a Sunny loan - between £200 and £1,500 - and repay over up to six instalments. And perhaps most importantly, Moneyboat has an excellent Trustpilot score, so with us, you know you’re borrowing from a lender with a solid customer reputation.