IOWCA why is Monzo offering 60% per annum loans? Is that really market rates?

Monzo Chat Business Banking
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hiya

I have a business account with Monzo, and I was looking at the business loans available.

I saw iowca would lend up to 10% of my turn over, this seemed helpful.

I saw 5% , and very nearly went for it. Luckily something slowed me down but I honestly miss read it as a 5% pa loan - seemed super cheap.

Then on a revisit I saw its 60% PA … 5% a month.

I view Monzo as a friendly bank - but this is a savagely high rate. I got a number of calls on follow up emails trying to get me to take the loan.

Is this really what Monzo wants to be associated with , is this what market rates are for unsecured loan to a limited company. 60%?

I’d love to hear some context on this - feels like Monzo may have chosen the wrong partner here.

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Have you complained to monzo directly? Not a public forum?

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He’s starting a conversation. That’s allowed on a public forum, yeah?

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its not really a complaint, if that’s market rates then it is fair.

Market rates are market rates.

If its not market rates , the what on earth are they doing…

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Wind it in.

It’s a gripe, and sounds complaint language, therefore asking if they’ve complained is reasonable instead of deaf ears on a public forum.

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I think this is a fair enough question to ask as a business owner who may actually want to use the product. Interested to know Monzos pov.

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I think personal loans also offer third party if you’re not eligible for monzo, and Bamboo loans is one of the options which has high apr up to ~69.9%

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So really doesn’t surprise me business get the same experience.

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Did you do any research as to what the market rate is, whether Monzo is competitive or were you just going to press yes and accept with Monzo?

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carlo, why the agg?

Assume you are a passionate share holder? Defending your treasured shares?

Am absolutely amazed personal and biz loans are at 60% … Wonga is back.

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latter … know enough that 5% is fine.

I think 60% is punchy what ever world you live in.

Don’t have access to data on unsecured Limited company lending, I assume with not PG.

Hence opening it up to the floor.

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But even if it was 5%, did you not want to research and see if it was 4% somewhere else?

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Neither.

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no frankly 5% is fine for me for the easy of doing on a few clicks and not spending time on research , plus I frankly trust monzo to not scalp me - sort of why i’m expressing my suprise.

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