Automated spread investment will help both private and professionals make the most of P2P loans
ArchOver, the peer-to-peer (P2P) business lending platform, is expanding its offering with the launch of an automated portfolio investment option on loans for SMEs.
The ArchOver Investment Plan has an annual target rate of up to 6.4%. It will accept pledges from £250, improving accessibility for retail investors.
“Peer-to-peer was established to democratise finance,” commented Angus Dent, CEO. “We knew there was demand from potential investors who could benefit from our model, but didn’t necessarily want to lend borrower-project-by-borrower-project, including investment houses that require a more diversified portfolio with cross-sector exposure. Institutions using the service will now be able to let ArchOver administer their portfolio for the first time.”
“We also wanted to provide a portfolio lending strategy for private investors. With the entry point at £250, our platform will now be accessible to an even wider group of people.”
Each Investment Plan will be spread over a minimum of ten secured investment projects on the platform, with no more than 10% of the portfolio being exposed to any one Borrower. The loans will benefit from ArchOver’s full range of security measures, including controlled accounts, credit insurance (where applicable), dispute resolution and an all-assets charge with Companies House.
As a result of the spread investment, investors’ exposure to risk is low, but they still benefit from ArchOver’s high rate of return and top-quality Borrowers, making the service a strong choice for individuals and institutions alike.
The new service comes amid a period of sustained growth for ArchOver, which recently launched its IFISA and achieved over £80 million in total funding facilitated, as well as expanding its leadership team to support further business growth.
About ArchOver
ArchOver is a peer-to-peer business lending platform, connecting businesses requiring finance with investors seeking a secure and favourable return. To date, ArchOver has facilitated over £80 million of funding for UK businesses and delivered Lender returns of up to 10% p.a..
Lending with ArchOver takes place over its secure online platform. Every loan listed on the platform has been pre-screened and approved by the experienced in-house credit team. The rate, loan term, loan security type and company details are listed, with Lenders making the final decision on which companies they would like to invest in. The minimum investment is £1,000.
Companies that borrow over the ArchOver platform are UK-based, have been trading for a minimum of two years, and are seeking a minimum loan of £250,000. They must have an established management team and a proven business model based on trading business-to-business. Loans are for any business purpose, typically raising working capital, replacing invoice discounting or bank overdrafts. Loans are fixed term, for a fixed amount and at a fixed rate of interest.
ArchOver offers five lending models supporting UK businesses. Each model addresses security in different ways to suit the needs of the Borrowers and the appetite of the Lenders. ArchOver’s flagship ‘Secured & Insured’ (S&I) model allows lenders to invest in loans secured against a company’s Accounts Receivable, where those Accounts Receivable are insured. ‘Secured & Assigned’ (S&A) allows Lenders to invest in loans that are secured against a company’s contracted recurring revenue, with ArchOver taking assignment of the contracts. ‘Secured’ (S) loans are leveraged against either a company’s Accounts Receivable or contracted recurring revenue, with the main difference being that the Accounts Receivable are not insured and the recurring revenue is non-assignable. ‘Bespoke’ (B) loans are made on the same basis as S&I or S&A, with the sole exception being that the all-asset charge initially ranks second and will transition to a first charge during the loan term. ‘Research & Development Advance’ (RDA) is unsecured short-term lending against an identified Research & Development claim payable to a company by HMRC. ArchOver also has an IFISA.
