UK Essays, which is owned by Barclay Littlewood, spoke after Education Secretary Damian Hinds said it was "simply unethical for these companies to profit from this dishonest business".
In a statement seen by the Mail on Sunday, the firm said: "We hold our clients to ethical and honest standards and make sure they're aware that misusing our service, the penalties are severe."
Users of UK Essays are instructed to use purchased essays as "a basis for your own further research", helping them to create their own "100 per cent original work".
But, earlier this month, the Government called up online platforms including Paypal to "stop promoting and facilitating access to essay writing services".
Mr Hinds (pictured below) said: "Sadly there have always been some people who opt for the easy way and the internet has seen a black market in essay writing services spring up.
"However, no matter how easy it is to access these services now, it doesn't change the fact that this is cheating, and students must understand it is unacceptable.
"It is simply unethical for these companies to profit from this dishonest business which is exploiting young people and it is time to stamp them out of our world-class higher education sector."
"I am determined to beat the cheats who threaten the integrity of our system and am calling on online giants, such as PayPal, to block payments or end the advertisement of these services - it is their moral duty to do so.
The Church of England has also expressed support for efforts to tackle essay writing services.
A Church of England spokesperson told Premier: "We wholeheartedly support the Secretary of State's action to stamp out the growing problem of essay writing services in the UK.
"In most instances it is clear that these services facilitate submission of work which is not the student's own, which is both unethical and dishonest, and can result in penalty action including expulsion from their courses.
"We would urge students to consider the consequences carefully, and to turn instead to their lecturers, tutors and support staff who want to help them achieve their potential."
On his personal website, Mr Littlewood, who has also posted video blogs on YouTube, says: "The company is based on a few key tenets of life and business, these being honesty, respect and excellence.
"You can read more about how I run my businesses by godly principles here."
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