ArchOver launch "Secured & Assigned" loans

January 30th, 2017

ArchOver has launched "Secured & Assigned" loans to complement their "Secured & Insured" loans.

Here is the full press release from ArchOver:

ArchOver, the premier P2P business lending platform, has launched ‘Secured & Assigned' business loans, expanding from its current ‘Secured & Insured' lending model.

ArchOver's first Secured & Assigned loan will be for Ergowealth, a firm of chartered financial planners based in Marlow, Buckinghamshire. Founded in 2013 by a group of experienced financial planning professionals, the firm requires the funding to accelerate its growth strategy and to help expand the newly-launched Mortgage Advisory services.

ArchOver's CEO, Angus Dent, commented: "We are continuously reviewing opportunities that benefit both our lenders and borrowers. Lender security has always been the back-bone of our business and we are delighted that we can find additional loan opportunities that align with our values and that are also attractive to our lenders. We are always striving to improve our services and provide multiple lending opportunities to our investors, which means we must continue to build our borrower pipeline. Most importantly, there are many established UK businesses that need help to grow, but cannot access the financing they require due to the endless red-tape and reduction in SME banking services."

ArchOver facilitates fixed term loans for growing UK businesses. Under its current model, loans are secured against a company's Accounts Receivable (ARs), where those ARs are covered against loss by credit insurance; this is referred to as Secured & Insured. This new lending opportunity matches ArchOver's primary principle of offering highly secure, asset-backed loans to investors. The only difference in the new model is loans will be secured against future contracted revenue, with ArchOver taking assignment of all recurring contracts; this is referred to as Secured and Assigned.

ArchOver will continue to take an all-asset charge over the company and have all revenues flow through a controlled bank account owned by ArchOver. All lenders will continue to enjoy the protection of having ArchOver closely monitor all borrowers, reviewing their aged summary of ARs and management accounts on a monthly basis throughout the entire loan period. This procedure has provided lenders with extra protection and is one of the main reasons ArchOver has had no borrower defaults, late payments, or losses to date.

Secured & Insured loans will remain a large part of the ArchOver offering, with new lending models continuously being reviewed.

Zopa reduce rates again

January 25th, 2017

Following several reductions in rates in 2016, Zopa have announced that they are dropping lending rates again by another 0.2%.

Here is the full email sent to lenders:

Since I last wrote to you about our lending rates, the personal loans market has become even more competitive. Nine of our competitors have dropped their rates by an average of 0.35% since the beginning of December, and we anticipate that these market conditions will remain in the coming months.

As our rates reflect the wider loans market, we’ve decided to adjust the target returns for each of our products. From 31 January the headline rates will be:

  • Access: 2.9%
  • Classic: 3.7%
  • Plus: 6.1%

As the market conditions continue to evolve, these rates may change again. We carefully monitor and adjust our rates to deliver the reliable, risk-managed returns you’ve come to expect from Zopa. For us, this is the most important thing.

Remember, when you invest your money, your capital is at risk.

This is why we won’t compromise our prudent lending policies, but we are always looking at new ways of getting your money to more UK borrowers. Just recently we introduced more flexibility in loan terms for borrowers which will increase demand for Zopa loans and have a positive effect on your time to lend.

There’s more detailed information on how we calculate rates on our blog, or if you have any other questions please get in touch.

OFF3R release Q4 2016 OFF3R Index

January 17th, 2017

OFF3R, the marketplace for alternative investments, have just published their Q4 Index Report.  The report analyses month-on-month performances of peer-to-peer (P2P) lending & Equity crowdfunding platforms on OFF3R the UK over the last year.  Due to its success, OFF3R will now release an updated report monitoring the performance of the industry each month.

FCA authorisations

January 12th, 2017

As we enter 2017 P2P money can report that there are now 14 platforms - that we are aware of - that are now operating with full FCA authorisation.  These are as follows, listed by launch date:

  1. Folk2Folk
  2. Lending Works
  3. Landbay
  4. Crowd2Fund
  5. LendingCrowd
  6. Capital Stackers
  7. Go2 Business Loans
  8. CrowdStacker
  9. InvestDen
  10. Octopus Choice
  11. Peer Funding
  12. The Money Platform
  13. Landlord Invest
  14. Simple Backing

There are also number of platforms operating as an "appointed representative" of another company with full FCA authorisation, or operating with full FCA authorsiation that does not include "operating an electronic system in relation to lending" permissions.  The major platforms within the sector are still awaiting full authorisation, and this prevents them from registering as an ISA provider.

Christine Farnish of the P2P Finance Association stated at LendIt Europe in October that it was her belief that these would be in place by March 2017, but to date only two of the eight platforms that are members have received full authorisation.

Folk2Folk obtain full FCA authorisation

December 7th, 2016

Yesterday Folk2Folk became the lastest peer-to-peer lending platform to obtain full FCA authorisation.  The company will also be applying to the HMRC to offer an Innovative Finance ISA.

Here is their full press release:

Folk2Folk, one of the UK’s fastest growing peer-to-peer business lenders has today been awarded its full FCA authorisation for peer-to-peer lending.  Folk2Folk having lent over £125m since launching in 2013 is now delighted to be the UK’s largest fully authorised P2P lending platform, matching individual business borrowers to individual lenders secured on property.

The South-West based business was given its full FCA authorisation ahead of a number of industry competitors including the big three.

Gaining full FCA authorisation is a major milestone for Folk2Folk as a business. By being fully FCA authorised, Folk2Folk can now look to offer the Innovative Finance ISA (IFISA) to customers in due course, subject to HMRC approval.

Jane Dumeresque, Folk2Folk CEO said, “We are delighted that the FCA has granted Folk2Folk its full authorisation for peer-to-peer lending. We see this as a significant milestone for Folk2Folk as a P2P lending business. This decision is significant as it makes us eligible to offer our IFISA before the end of this tax year. I think it speaks volumes about Folk2Folk as a business having gained its full FCA authorisation ahead of many of the industry’s leading and larger platforms. We believe this will act as a positive sign to investors as well as business professionals that are looking to partner with a trusted and fully authorised platform like Folk2Folk.”

Jane Dumeresque added, “Our mission is to help local businesses get access to the finance they need by matching them to local investors in a quick, simple and easy process. Folk2Folk remains a business of the people, for the people by the people and is proud to be a national lender that operates locally. By establishing a local presence in strategic regions across the UK through our unique branch network, we can encourage the local community to invest through Folk2Folk to help local business owners prosper and thrive. We believe it’s always more interesting and reassuring when an investor can see what exciting projects their money is supporting.”

Folk2Folk works closely with business professionals such as lawyers, accountants and bankers across the UK and by becoming fully authorised by the FCA it is expected that this accreditation will encourage more professional services to work in partnership with Folk2Folk to assist their clients with alternative forms of finance and investment options. 

Folk2Folk on a national level specialises in local secured lending for businesses. Folk2Folk enables local business to achieve their business goals and grow by matching local and rural businesses looking for finance with local investors looking for a great return.  Interest costs to the borrower (before fees) and investment returns to the investor range from 5.5% to 6.5% based on the LTV of the property which acts as a security against the loan and other criteria.