Peer to Peer Funding for the East Region
In recent years there have been fundamental changes to the way all Banks operate leaving a gap in the market which is being met by some innovative solutions. Peer to Peer lending (also known as Crowd Funding), a mechanism where investors lend directly to businesses has provided a route to finance when traditional providers have not.
Funds are raised by presenting opportunities to potential investors via an internet platform. Investors join in an Online Auction where they decide how much they want to bid and at what interest rate. Because each loan is structured as a term loan with a fixed monthly repayment, interest costs can be predicted with certainty; there is no exposure to market fluctuations.
ThinCats is the largest secured peer to peer lender in the UK, and to date have lent over £150m.
A unique feature of ThinCats is that each Borrower has to obtain the support of a ‘Loan Sponsor’ before they can access the Network. Sponsors are all experienced former Bank Managers or Corporate Finance professionals who are paid (on success) by the Borrower to help present their case and package the loan.
As a sponsor we produce a pack of documents as if it were for consideration by the Credit Committee of a Bank. We work for the Borrower and do not give the Lenders any investment advice.
Typically deals have the following characteristics:
- Term loans up to 7 years
- Loans for any purpose
- Fixed Interest rates available
- Capital and Interest monthly repayments
- Borrowers are established businesses
- Security through Personal Guarantees
- Mortgage Debentures may be required
- No penalty for early repayment with respect to most loans