About WageDayAdvance Ltd

About us

WageDayAdvance is one of the UK’s leading online payday loan providers. The company was formed in 2004 to offer a fully online solution for people looking to borrow money on a short-term loan. The company provides loans of up to £750 on a short-term basis of up to 40 days.

The company has now grown to a point where by the end of 2010, it employed more than 100 people in Skipton, North Yorkshire. WageDayAdvance is looking to expand further into new markets as the need for short-term credit arrangements grows.

With the financial crisis still very evident, the traditional high street banks are making it harder and harder for people to get loans. In addition, many customers are concerned about the very high charges made by banks for unauthorised overdrafts. Hence the need for people to have access to simple and transparent loans that they can pay off quickly and will not get them into heavy debt.

Payday loans offer an ideal and cost effective way of borrowing money on a short-term basis. Unlike overdraft rates and banking charges, our charges are totally transparent. Customers know exactly what they are borrowing, how much it will cost and how much they will have to pay back and when – nothing hidden and no nasty surprises.

Why APR’s are misleading

We believe the current APR system is unsuitable for our customers and we would like to see a much more meaningful way of expressing our charges. Payday loans automatically appear expensive because of the APR system – however the APR system is designed for longer term lending. The fact of the matter is that the straight forward interest charges which we make are totally transparent and there are no hidden charges. A customer borrows £100 and pays back £129.50 within 40 days and that is it, click here to see our charges.

Sadly some in the media and those who do not understand how the system works highlight payday loans as poor value and excessive charging. This is due to providers having to comply with out of date and irrelevant legislation. Once people understand the simplicity and transparency of the charging structure, they understand that APR’s are not the best way of measuring charges in this market.

Responsible lending

WageDayAdvance is committed to responsible lending and adheres strictly to the rules laid down by the Consumer Credit Act and the Responsible Lending Guidance issued by the OFT. Payday loans are designed only to be short-term loans to cover cash shortfalls and are not an efficient way of borrowing longer term.

We ensure that customers can afford their loan before we approve it. The initial amount a customer can borrow is limited to £400 first time round so we can make sure that they can afford to pay at a lower level of loan.

We also make it very clear to customers that payday loans are not the most cost effective way to borrow money over a longer term and that they are designed to be for 40 days only. We don’t recall seeing many banks saying on their products that this may not be an effective way to borrow!

The amount we allow people to borrow is, in real terms, very low. You can go on the internet today and borrow tens of thousands of pounds with little trouble – and this is an amount of money that can get people into serious problems. With payday loans you can only borrow a very small amount.

The Founder

Dale Chapman is the founder and managing director of WageDayAdvance.

In 1993 Dale became the UK’s youngest pawn broker, based in Keighley, West Yorkshire and soon after became one of the first and youngest “cheque cashers” in the UK. After 10 years in the cheque cashing industry, Dale used his knowledge and experience of the industry to set up Wageday Advance. Dale’s vast knowledge and experience in the cheque cashing and short term loan industry has been a key factor in driving the success of WageDayAdvance.

Dale is now looking at the potential for growing the company outside of the UK as markets overseas develop and drive the need for short-term loan providers.