Tag: Press Release

ARCHOVER SETS SIGHTS ON PROFITABILITY WITH SUPPORT OF INDUSTRY VETERAN, BILL JOHNSTON

Author
Charlie Mahalski
Date

Sceptical chartered accountant converted to brand champion after seeing momentum build among credible lenders

After surpassing £60 million of lending, ArchOver, the peer-to-peer (P2P) business lending platform, has announced it is aiming for profitability with Bill Johnston joining its board of directors as a non-executive director (NED). In his role, Johnston will support ArchOver in formularising its training and development programme, to ensure it has the right talent in place as it continues to scale.

“In the early days, I doubted ArchOver could succeed. It’s my job to distinguish between ambition and reality. While there is growing demand for alternative finance, it would only take one major player to fail and the whole sector would be at risk of big reputational damage”, commented Bill Johnston. “However, as ArchOver started to attract institutional investment, I was slowly converted. Based on rigorous monitoring of borrowers, ArchOver has built a significant client base of credible lenders making informed decisions about where to put their money. It is a business of substance, poised to move on to the next stage of growth. I am hoping to contribute to that development.”

Johnston will offer an external perspective and work with ArchOver employees to understand their career goals. Applying a strategic view, he will advise on what roles and responsibilities employees can assume as the business grows and any training ArchOver can deliver to help career progression.

“Not everyone gets P2P or ArchOver straight away. The fact that a chartered accountant – one that is not afraid to speak their mind – has become one of our biggest supporters shows how the perception of P2P is evolving to become a solid, credible form of lending, forming part of the financial services industry”, concluded Angus Dent, CEO of ArchOver. “As he starts to transition out of his role at Hampden, Johnston has requested to stay involved with ArchOver and act as a link between the two companies, helping install the skills and disciplines fundamental to our future growth.”

Johnston has had a distinguished career in the finance and accounting industry. An unusual alumnus of the University of Oxford (designated as a Distinguished Friend of Oxford, rather than a graduate), he sat on the Training Committee of The Institute of Chartered Accountants in England and Wales (ICAEW) for over a decade and has been Group Finance Director for the Hampden Group since 2010. He was previously a Managing Director and Partner at Seymour Taylor, an accountancy practice in High Wycombe, which audited Hampden Group and was absorbed by the company in 2009.

In his role at Seymour Taylor, Johnston acted as a virtual finance director, providing strategic advice and support to SMEs and entrepreneurs, supporting businesses in sectors such as manufacturing and telecommunications. Other positions Johnston has held include training consultant to the ICAEW, where he was responsible for authorising overseas firms to take on ICAEW students if they could demonstrate sufficient experience and provision of training tuition. He was also Treasurer and Chairman of Regent’s Park College, Oxford, and Chairman of several medium-sized charitable organisations that plan to expand nationally.

MILLENNIALS OUT-INVEST GEN X AND BABY BOOMERS

Author
Angus Dent
Date

Millennials aged 18-34 are out-investing Gen X (those aged 35-54) and Baby Boomers (aged over 55) according to a new study by ArchOver, the peer-to-peer (P2P) business lending platform. The report, Next Gen: Investors and Savers, explores the UK’s attitude towards risk and investment in the current climate. The research of 2,000 UK adults revealed that two-thirds (67%) see themselves as savers, using deceptively ‘safe’ banking options like savings accounts and pension funds to sit on their cash. The remaining third (33%) see themselves as investors, using riskier avenues like stocks, shares and property to grow their investments.

However, in a challenging economic environment, there are signs both savers and investors need to broaden their options and embrace alternative forms of finance to secure higher yields. The Millennial generation is often portrayed as less financially savvy than the generations who preceded them. The common view of this generation is that they lack the foresight to build up a portfolio of savings, investments and pensions and are being driven out of the housing market. Yet this is also a group that is confident in their own financial abilities and acutely aware of the need to make their money work harder. Of the 2,000 people surveyed, 35% of Millennials are investing or saving more than £250 per month compared to 26% of Gen X and 25% of Baby Boomers.

“Despite claims that Millennials are stuck in a financial rut, trapped by high property prices and low-wage growth, this is a generation that has grown up in an era of record-low interest rates and recognise the need to secure better returns on their disposable income,” explained Angus Dent, CEO of ArchOver. “On the other hand, those aged over 35 are at risk of missing out on new avenues offering higher returns. Gen X and Baby Boomers could benefit from following in the footsteps of Millennials and introducing greater diversity into their investment portfolios to seek out higher returns.”

Millennials, who have been early adopters of social media and have a strong familiarity with technology, are using this knowledge to identify new online tools or platforms to invest over. The research reveals that 59% of Millennials trust technology and use automated services to help generate the best financial decisions. In contrast, just 40% of Gen X and 24% of Baby Boomers claim the same. As a generation of digital natives who are strongly connected online with access to a wide circle of information, Millennials are relying on reference points from their peers. Overall, 41% of 18-35-year-olds get investment advice from their friends, family or colleagues, while older generations are more hesitant to talk about money. Only 31% of Gen X and 19% of those over 55-years-old would turn to their friends or family for advice.

Those aged over 35-years-old are also failing to take advantage of opportunities to diversify their portfolios and experiment with options offering higher returns. Nearly half (44%) of Millennials are investing using P2P and 57% are comfortable with alternative forms of investment that hold a higher level of risk. In comparison, just 16% of Gen X are investing using P2P platforms and only 29% are considering new or alternative investments with higher risk levels. For Baby Boomers, these figures sink even lower. Only 8% have invested over P2P platforms and just 14% would accept the higher level of risk that comes with new and alternative investments.

“Rather than admonishing Millennials for being irresponsible, the older generations could learn something from following the behaviour of a new generation,” concluded Angus Dent. “Millennials, who grew up during the deepest and longest recession in recent history are proactively looking for ways to balance security and risk in order to maximise returns but without putting their capital in too much danger. In an effort to secure higher yields, they are tackling the difficult financial climate head-on.”

We have entered a new age of investment. Millennials are leading the way in using their digital know-how to experiment with ways of growing their nest-egg and setting the pace. Now it’s up to Gen X and the Baby Boomers to decide if they want to follow their lead.

The research reveals that Millennials see opportunity where older generations see caution. Over half (52%) associate the words ‘risk’ and investment’ with opportunity, while 55% of Gen X associate it with ‘discomfort’ and 58% of Baby Boomers associate it with ‘uncertainty’. Gen X are too preoccupied with safety to take a new opportunity that could grow their money – 60% would only invest in traditional and proven investments, such as bonds, cash, equity and shares that have benefitted them in the past. While over three quarters (76%) of Baby Boomers make investment decisions based on the security provisions in place to protect their investments. However, investment habits need not be generational. If investors can find a comfortable balance between reward and risk then a bolder, more creative and diversified approach can pay dividends.

To read “Next Gen: Investors and Savers”, click here.

TLM TECHNOLOGIES RECEIVES £1.35 MILLION IN P2P FINANCING THROUGH ARCHOVER TO FUEL EXPANSION

Author
Ashlee Dutton
Date

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.

ARCHOVER TO REPRESENT PEER-TO-PEER SECTOR IN UK FINANCE ASSOCIATION

Author
Ashlee Dutton
Date

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.”