Sky News said the lender is looking to shift its focus away from the short-term lending model it has become notorious for.
In a statement issued to Sky News, a Wonga spokesman 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.”
Wonga received full consumer credit permissions from the Financial Conduct Authority (FCA) earlier this year, allowing the firm to carry out credit broking, debt administration and debt collection, consumer credit lending, peer-to-peer lending and provide credit information and reference services.
A permanent fixture of its offering now includes a 90-day instalment loan product, which intends to give customers greater flexibility with repayments.
The payday lender has suffered plummeting profits in recent years while being forced to axe hundreds of jobs. In 2014 it paid out over £2.6m to around 45,000 customers for ‘unfair and misleading’ debt collection practices. Investment in the business to become a sustainable brand which lends responsibly and transparently had also impacted its 2015 profits, Wonga said.
Despite escaping a criminal investigation into treatment of its customers in February last year, Wonga was named the second-most improved brand of 2015 according to data published by YouGov.
