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Peer2Peer Finance News | August 17, 2019

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ArchOver investors back first “multi-channel” P2P business loan

ArchOver investors back first “multi-channel” P2P business loan
Marc Shoffman

ARCHOVER has completed its first “multi-channel” business loan worth £1.35m.

The new facility combines the platform’s “secured and insured” and “secured and assigned” lending models.

Retail technology company TLM Technologies borrowed an initial £1.1m, split between two loans.

The first enabled TLM to exit their invoice discounting facility by providing £600,000 as a 12-month “secured and insured” loan against its accounts receivable.

The second was a 12-month, £500,000 “secured and 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.

“TLM is a fast-developing company with scope to expand overseas and cross over into targeted new sectors,” explained Lee Papper, chief executive of TLM, said.

“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.

“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.”

ArchOver specialises in a “secured and insured” model, facilitating fixed-term loans for companies secured on their accounts receivable (AR), which are then insured. It sees this as a unique selling point, offering lenders an extra layer of security.

In February it expanded into “secured and assigned” business loans. These loans will be secured against future contracted revenue, with ArchOver taking assignment of all recurring contracts, but these will not covered by credit insurance like the AR in the “secured and insured” model.

ArchOver will continue to take an all-asset charge over the borrower’s company and have all revenues flow through a controlled bank account owned by ArchOver.

Read more: ArchOver gains full FCA authorisation