Sunny Loans Alternative
Drafty is a cheaper, and more flexible alternative to Sunny Loans.
Who Was Sunny Loans?
Sunny Loans was previously an online direct lender based in the UK. Sunny Loans was known for offering payday loans and short term loans. Loans ranged between £100 and £2,500, and the amount you were approved for depended on credit checks, affordability, and personal circumstances. However, in June 2020, the company went into administration due to a surge in customer complaints and regulatory challenges.
As of August 2023, Sunny is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender.
If you are looking for an alternative to Sunny Loans, why not try Drafty? We’re a little more flexible and are alternative to payday loans. Drafty offers a line of credit of up to £3,000. We offer quick applications, and if you’re approved, we’ll send the cash to your bank in 90 seconds. And the best part? You’ll only pay interest on the amount you draw from your line of credit.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Why Drafty Could Be a Better Alternative?
Unlike the payday loans offered by Sunny Loans, Drafty offers a credit line with a limit of up to £3,000. Here is why you can consider Drafty as an alternative to Sunny Loans:
- Speed - You'll get a fast decision. And if approved, we’ll send the cash to your bank in under 90 seconds
- Borrow what you need – Apply for up to £3000 and withdraw up to your approved credit limit when needed
- Reuse - Once you’ve used Drafty, you can withdraw up to your agreed limit again. No need to reapply
- No fees – We don't charge any extra fees. Also, you only pay interest on what you use. It doesn't cost you a penny if you don’t use any of your credit
We’re an FCA-authorised and regulated direct lender. Our authorisation number is 689378. We only offer our credit line to those we think can afford it.
At Drafty, we’re proud of our customer service. See why we’re rated great on Trustpilot.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Has Sunny Loans gone into administration?
Sunny Loans went into administration on June 29, 2020, and stopped accepting new loan applications the same day.
Under reforms introduced by the Financial Conduct Authority (FCA) in 2015, all lenders are required to run affordability checks on customers. This is to ensure that they can afford repayments on the loans they take out.
As lenders failed to do so this led to an increase in complaints to the Financial Ombudsman Service (FOS) and large payouts to consumers. This toppled payday loan brands like Wonga.
According to the UK's Financial Ombudsman Services, in the second half of 2019, they received 2,897 complaints about Sunny Loans and agreed in the customers favour on 76% of the volume received. This was more than twice the Financial Ombudsman’s 35% average uphold rate for the period.
These tighter regulations, combined with a significant increase in customer complaints, led to a considerable financial strain on Sunny.
As of August 2023, Sunny is back under the trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Sunny does not charge customers a fee for using its introducer services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement following an introduction through the website.
If you want to borrow money and are looking for a Sunny loan alternative, try Drafty. Instead of traditional loans (like a short term loan), we offer a personal line of credit with a maximum limit of £3,000. If approved, you can borrow up to your credit limit as often as you want and you only pay interest on the credit you use, as long as remain up to date with your payments and your account is in good standing, We might consider you for our line of credit even if you have a poor credit score.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
What sort of loans does Sunny offer?
Sunny used to offer short term loans and payday loans. A Sunny payday loan might have provided immediate financial relief to individuals until their next payday. However, after facing financial difficulties and a surge in customer complaints, Sunny Loans went into administration in June 2020.
Following administration, the Sunny brand transitioned under the trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. This means that while Sunny no longer offers loans directly, it facilitates the connection between borrowers and potential lenders.
Are Sunny Loans refunding customers?
Sunny Loans is no longer refunding its customers. The company went into administration in June 2020. Customers cannot make any claims against them now. On 28 May 2021, the KPMG administrators announced that they would be paying 3.21p in every pound to people who made a valid claim. 40,000 people submitted a claim for unaffordable loans.
Does Drafty offer loans Like Sunny Loans?
No, Drafty is different. We offer a line of credit. As long as you pay the monthly minimum payment (which covers your interest and amount of credit used), you can choose to repay early with no early repayment charges.
A short term loan (like a payday loan) or a long term loan (like a mortgage), is done once you’ve paid it back. Whereas with Drafty, as long as you are up to date with your payments and your account is in good standing, you can borrow up to your credit limit as often as you want.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How is Drafty different from (or better than) Sunny Loans?
| Drafty | Sunny Loans |
| Drafty offers a line of credit up to £3,000. We'll make a near-instant decision, and if you're approved, we will send the cash to your bank in 90 seconds. | Sunny used to provide short-term loans between £100 and £2500. They intended to provide same-day cash to customers in need. On their website, they stated that the cash would be sent within 15 minutes, subject to lenders’ requirements and approval. |
| When you borrow from Drafty, there is no set minimum or maximum repayment term so long as the minimum monthly repayment sum is met. | The repayment period for a Sunny Loan was 6 months. |
| With Drafty, you only pay interest on the amount of credit that you use. It doesn't cost you a penny if you don’t use any of your credit line. | Customers had to pay interest on the entire amount of the loan. |
| We continue to be transparent in our lending processes, offering borrowers flexible options, no hidden fees, and clear terms and conditions. | Sunny Loans is no longer lending money. They faced regulatory challenges and customer complaints, which led to their closure as a direct lender in 2020. |
How can I check the eligibility criteria for Drafty, a Sunny Loans alternative?
You can apply online for a line of credit with Drafty if you are:
- Aged 18 or over and employed
- Earning at least £1,250 a month
- A UK resident with an active UK bank account and debit card
After you’ve provided the required details, we’ll do some credit and affordability checks. If approved, we'll agree on a credit limit and send the cash to your bank within 90 seconds. You can even consider us as an alternative to loans for bad credit as we might consider you for our line of credit even if you have a bad credit rating.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How can I apply online with Drafty?
Here's how you can apply:
- Apply - Visit our website and click on the apply now button. Fill out our online application form by entering a few personal details to help us understand who you are.
- Get a credit limit - If approved, you’ll be given a credit limit of up to £3,000. You can use it as you require, paying interest only on what you use.
- Flexible payments - You’ll need to repay a minimum amount every month. Want to repay early? That’s fine with us! We don’t charge anything extra. Also, it’s easy to make payments through our app.
- Fast cash transfer - Use Drafty whenever you need to, and we’ll send the money to your bank in under 90 seconds.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
FAQs - Sunny Loans
Do Sunny loans still exist?
Sunny Loans no longer exists as it went into administration. The company ceased its lending operations and has wound down its business.Who took over Sunny loans?
Nobody took over Sunny Loans. KPMG was appointed as administrators after Sunny went into administration. KPMG was appointed to manage the orderly wind down of the business.Is Sunny Loans a direct lender?
Yes, Sunny Loans was a direct lender. They used to directly manage the loan applications and lending loans to individuals without involving third parties.Is Sunny Loan legitimate?
Sunny Loans was a legitimate company regulated by the Financial Conduct Authority (FCA). However, it stopped lending when it went into administration.Are Sunny Loans still trading?
Sunny Loans is still trading but not as a direct lender. Sunny Loans are now a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited. They are a credit broker, not a lender.Drafty is an FCA-authorised provider of a Revolving Line of Credit with a credit limit of up to £3000, available to borrow as and when you need it (subject to affordability checks). You only pay interest on what you draw/use.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
There is no set minimum or maximum repayment term, so long as the minimum monthly repayment sum is met, however, you may repay back early without any fees and save on interest.