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: Lenders
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.”
ARCHOVER HEADED FOR A RECORD YEAR OF LENDING
ArchOver, the peer-to-peer (P2P) business lending platform, has revealed that it has nearly doubled its overall lending in the first nine months of this year. Since January 2017, total lending over the platform has reached £21.39 million, bringing the cumulative total that ArchOver has lent to date to over £48 million. Proving that the appetite for P2P services from investors and borrowers is continuing to grow, ArchOver is set for a record year as it rapidly approaches the £50 million lending mark.
“Looking back over the last three years, we have seen a huge spike in demand for P2P. On one hand, investors and savers are recognising that they need to make their money work harder. This means taking their funds out of low-interest environments to gain greater returns,” explained Angus Dent, CEO of ArchOver. “On the other hand, we’ve also seen a growing awareness among borrowers that there are alternatives to traditional lending and P2P can provide the funds to take businesses forward and support growth.”
Alongside stocks, bonds and property, P2P is increasingly being incorporated into investors and savers portfolios. In less than 10 months, ArchOver has more than doubled its number of investors. There are now 624 investors using the platform, up from 304 at the end of December 2016. On average, lenders are receiving a rate of return of 7.3 per cent per annum. Highlighting how investor confidence is growing, lenders will typically make up to eight pledges on the platform.
Borrowers’ appetite for P2P has also grown as the number of loans funded using the business lending platform has reached over 200. In addition, borrowers are increasingly seeking more significant sums of money. All loans are for a fixed term, fixed rate and fixed amount to give businesses the security they need to plan ahead. ArchOver has begun facilitating loans of higher value with UK SMEs including Prospect Business Centres Limited (“PBC”) and Duradiamond Healthcare Ltd (“Duradiamond”), each borrowing over £3 million.
Both companies have benefited significantly from borrowing using ArchOver’s two main lending models, its flagship ‘Secured & Insured’ model and the ‘Secured & Assigned’ model, which launched earlier this year. PBC has already grown their London property portfolio off the back of securing £3.1m in a series of loans from July to September 2017. While, Duradiamond, who borrowed £3.3m in a series of loans over nine months (March to November 2016), received the boost it needed to grow its business and become successful enough to repay the loan early, and with no penalty. The final payment was made in August 2017, four months before the repayment was due.
“Our business model allows us to provide lenders and borrowers with a personal and transparent approach that offers them reassurance,” concluded Dent. “Ultimately, we want to become an important partner in their growth so we can advance business borrowing for the better. At the same time, we want to ensure that lender security is a priority so we can offer a rate of return that’s higher than expected
given the level of security. We are confident that this approach will allow us to continue growing successfully and support us in our move towards achieving profitability.”
For a comprehensive review of ArchOver, Orca Money has produced an independent Investment Report that provides an in-depth analysis on ArchOver. The report can be found by visiting Orca Money and entering the Coupon Code “ArchOver.”
ARCHOVER TO REPRESENT PEER-TO-PEER SECTOR IN UK FINANCE ASSOCIATION
ArchOver, the peer-to-peer (P2P) business lending platform, has become a member of UK Finance, the newly created trade body for financial organisations in the UK. Following its acceptance into the Asset-Based Finance Association (ABFA) last month, ArchOver will represent the interests of peer-to-peer lenders in the new group. This latest industry recognition underscores ArchOver’s position as one of P2P’s leading players and a key voice in the industry.
UK Finance will combine six financial trade bodies, including the British Bankers Association, Payments UK and the ABFA, and will act as a united voice lobbying government on standards in the financial sector. ArchOver is committed to a highly secure model of lending, with its Secured & Insured and Secured & Assigned lending models emphasising lender security with an all-asset charge. It is well-placed to represent the interests of P2P in the organisation – it has expertise in in-depth credit analysis and monthly monitoring, as well as sourcing credit insurance policies and rapid dispute resolution service for borrowers.
The membership reinforces ArchOver’s ability to help mid-market businesses secure up to £10m in funding, with the company having already facilitated over £40m in financing over its platform. Boasting no borrower late payments, no defaults and no losses over the past three years, ArchOver has shown that it can deliver ROI for investors as well as helping borrowers achieve their goals.
“We’re delighted to take our place in UK Finance as it begins its work as the voice of the finance industry, and we look forward to representing P2P on a national stage,” commented Angus Dent, CEO at ArchOver. “As part of the association we will continue to build on our success, providing SMEs with quick, secure access to the funding they need to grow, and helping private investors make their money work for them in a challenging economic climate.”