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Money&Co have announced that have a pipeline of loans in excess of £4million over the next quarter. This was announced in an email sent to lenders providing an update on their business. Money&Co also stated that they they are to offer asset backed loans in order to broaden their offering.
Here is the full email:
We are conscious that 2016 has started without an auction on the site, which is disappointing, and so the purpose of this message is to give you an update regarding the strength of our transaction pipeline going forward.
It is important to emphasise that Money&Co. consciously differentiates itself from other peer-to-peer business lenders by employing a more forensic approach to its due diligence. The downside of this is that lead times for a transaction are typically longer than for other sites, but lenders should take comfort from the knowledge that a more rigorous appraisal of potential borrowers is undertaken, which is reflected in the quality of the current loan book. In addition, we have established a reputation with borrower introducers as a specialist in acquisition financing in its various forms. Such deals typically require more analysis than a request for a conventional corporate loan and are likely to involve delays because of the involvement of a wider set of parties. In our view, it is worth being patient in order to gain participation in these deals.
We are currently actively working on transactions with an aggregate value in excess of £4 million, including two deals with a total value of £2.7 million, for which credit applications are being prepared now with funding required in April/May. We are also hoping to bring two smaller transactions to the site in the coming weeks. Finally, we have been selected by a further three borrowers who are seeking exclusivity on their part in the hope of concluding acquisitions over the next eight weeks. These transactions represent a further potential funding requirement of £1.8 million.
Against this background, and in order to grow our transaction flow going forward, we are increasing the size of the Credit Team and also extending our product range to include asset-backed lending in order to broaden our offering to lenders. We expect the number of auctions to increase dramatically on the site in the coming months and we hope that you will continue to lend through Money&Co.
Thank you for lending with Money&Co.