Loan warning

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A BUSINESS insolvency expert is worried after one of the UK’s best-known payday loan firms unveiled plans to target struggling small businesses.

Steve Ross, chairman of the North East arm of insolvency trade body R3 and a director in the corporate recovery department of accountancy firm RSM Tenon’s Sunderland office, was speaking after Wonga became the first consumer loan firm to move into the business market.

“A short term fix is not what a struggling business needs,” he said.

“The focus must be on survival in the medium and long term.

“Businesses should be able to navigate a period of short term difficulty on their own without resorting to high interest loans.”