Angus Dent shares his hopes for the ArchOver platform, and his concerns that the growing involvement of institutions in the industry, runs the risk of blocking ordinary savers from investing in P2P. Read the full Peer2Peer Finance News feature here.
Tag: borrowers
ARCHOVER SURPASSES £50 MILLION LENDING MILESTONE
ArchOver, the peer-to-peer (P2P) business lending platform, has facilitated over £50 million of lending with no losses or late payments. The platform has always been available to both institutional and retail investors, with both groups lending under the same terms and conditions. ArchOver will continue to focus on developing its lending strategies to meet growing market demand, while maintaining its unrivalled combination of transparency, equality and security with investors selecting the companies they wish to lend to.
With £4 million in total shareholder and investment capital, this latest achievement demonstrates the strength of ArchOver’s business model as it matches prudent spending with the rapid growth of its loan book. It is backed by parent company the Hampden Group, one of the UK’s most successful financial support services firms, which saw the potential in ArchOver’s business model early on.
“In a world of low returns, investors are increasingly searching for higher yields,” said Angus Dent, ArchOver CEO. “Lending is a relatively straightforward asset class for both institutional and retail investors to understand, and the Financial Conduct Authority’s recent certification of ArchOver and other P2P platforms has given them the confidence to add P2P lending to their investment portfolio.
“We look forward to introducing new lending services in 2018, helping to expand our borrower and lender base while continuing to operate with the best principles of P2P lending. We offer manual platform lending to all levels of investors on the same terms and interest rates. We will continue to do so while also building models that meet the increased demand for larger loans from British businesses adopting the P2P model.”
The ArchOver platform produces average yields of 7.3% per annum, and comes with multiple security measures built in to protect investors. Investments benefit from an insurance partnership with Coface, dispute resolution services from Escalate, and ArchOver’s all-asset charge and controlled intermediary account. ArchOver applies rigorous credit analysis to every potential borrower and monitors the loans made throughout the term.
“This is a significant landmark in ArchOver’s growth,” said Stephen Harris, Hampden Group CEO. “ArchOver has consistently produced high yields for institutions and individuals alike, and that high quality of service is producing fantastic results. We are reaping the benefits of recognising the strength of the ArchOver model early, investing in the company and lending over the platform alongside a growing number of investors. We look forward to continuing to support ArchOver as the business continues to grow with profitability.”
TLM TECHNOLOGIES RECEIVES £1.35 MILLION IN P2P FINANCING THROUGH ARCHOVER TO FUEL EXPANSION
Background
Prior to 2015, TLM Technologies was a small fuel pump maintenance business. Fast forward to today and its expertise within the convenience and fuel sectors (CFS) has firmly established the company as one of the UK’s technology success stories, supporting large-scale, blue chip clients including Costa Coffee and Sainsbury’s in making smarter, more profitable decisions.
Challenge
TLM Technologies provides the critical services that retailers rely on to keep operational, offering electronic point of sale (EPOS), back office and head office systems designed to unlock the full potential of retail environments. As growth increasingly stems from technology support services, TLM Technologies is focused on introducing new features and functionality that cement its status as a market leader by developing new IP.
With more than 100 employees across the group and the acquisition of Ocean Dynamics equipping the company with in-house software development capabilities, TLM Technologies has the critical resources and development teams in place to scale up operations. However, its previous invoice finance facility was not flexible enough to keep up with the company’s rapid growth and investment needs.
“TLM is a fast-developing company with scope to expand overseas and cross over into targeted new sectors,” explained Lee Papper, TLM CEO. However, our previous invoice finance facility was not able to meet our needs. We need a funding solution that can be as dynamic as we are so we have the flexibility and certainty to push our business to the next level.”
Solution
TLM Technologies needed to free itself from expensive invoice discounting facilities and secure an injection of working capital to support the future growth of the business. It compared all the finance options available including traditional banks and selected ArchOver as it offered the most flexible, straightforward loan process, which allowed the company to exit its previous financing.
Together, TLM Technologies and ArchOver have pioneered the first multi-service peer-to-peer business loan using two flagship funding models: Secured & Insured and Secured & Assigned. ArchOver launched this new joint model in February 2017, enabling high-growth companies to raise funds against their accounts receivable and contracted revenue.
In May 2017, an initial £1.1m, split between two loans, was funded over the ArchOver platform. The first enabled TLM to exit their invoice discounting facility by providing £600,000 as a 12-month Secured & Insured loan secured against its accounts receivable. The second was a 12-month, £500,000 Secured & Assigned loan, based on TLM’s contracted revenues from software licenses and service maintenance contracts. A further £250,000 was funded over the ArchOver platform in July 2017 to support rapid business growth expected over the next six months.
“ArchOver’s service was recommended to us, and having experienced their professionalism and flexibility first hand, we are not looking back,” Papper continued. “ArchOver made access to funding as seamless and simple as possible by working closely with us to understand our business and its needs. The loan application process was smooth and straightforward, while the team moved quickly to put our loan in place, and gave us friendly, personal service, including multiple on-site visits.”
Benefits
ArchOver’s peer-to-peer lending services provided TLM Technologies with a personalised solution tailored to the needs of the business. ArchOver has enabled TLM Technologies to leverage the value in both its delivered and future contracted revenue, boosting its available loan amount and giving it the financial stability to move the business forward.
The funding secured using the ArchOver platform has transformed TLM’s position, freeing it from the constraints of invoice financing and enabling it to focus on growing its core business. It provides it with the certainty to plan for the future knowing it has the security of funds. In addition, no personal guarantees were required and additional financing was approved in a quick and seamless manner.
PROSPECT BUSINESS CENTRES TURNS TO ARCHOVER TO SUPPORT NEXT STAGE OF GROWTH
ArchOver, the peer-to-peer (P2P) business lending platform, has announced that Prospect Business Centres Ltd, the provider of serviced office accommodation, has selected ArchOver to raise additional working capital and replace its existing credit facilities.
Prospect Business Centres has provided specialist high-quality serviced office accommodation since opening its first centre in Leeds in 1980. The profitable business currently has seven centres in prime business locations, with five in London and two in Leeds. With a focus on quality of service and flexibility, Prospect Business Centres has an average occupancy rate of 87% in London and 82% nationwide. Its clients range from regional-based businesses like Health Management and West Yorks Mediation Services occupying one desk space in Leeds, to multinationals including GE Capital, AXA, NHS, Accenture and Kier Construction filling over 120 desks in the City. The company is now planning to open a further three sites in London over the next 18 months to meet the demand for serviced office space and support future growth.
“Just a few years ago, alternative finance providers weren’t as available in the mainstream. Without the likes of ArchOver, the best options available came with high interest rates and requirements for personal guarantees,” explained Charlie Cudworth, managing director at Prospect Business Centres. “When we started to consider the next stage of financing to help us achieve our projected growth figures, we were introduced to ArchOver by CreditSquare. It was their commitment to working closely with our business to understand our requirements coupled with its ability to package a series of loans together made it an ideal choice.”
Using its Secured & Assigned service, ArchOver has already raised £692,000 and is currently funding an additional £400,000 as part of a series of loans that will allow it to facilitate £3.1 million over the next 6 months. Against future contracted revenues of £12.3 million, the new loans will repay existing borrowing, reduce the cost of funding and give Prospect Business Centres the certainty that it needs to continue expanding and open new sites.
“We aim to help British businesses and have worked hard to raise awareness about alternatives to traditional lending which also maximise returns for investors,” concluded Angus Dent, CEO at ArchOver. “Originally founded in Leeds in 1980, Prospect Business Centres has continued to expand as demand for serviced office space has grown. Prospect Business Centres is an excellent example of how we are supporting the growth of companies that have long been ahead of their time by making access to funding as easy and simple as possible.