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Peer2Peer Finance News | December 13, 2018

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Ablrate to launch auto-lending products

Ablrate to launch auto-lending products
Suzie Neuwirth

ABLRATE is gearing up to launch a new range of auto-lending products.

The peer-to-peer secured business lender, which typically operates a self-select model, said on Thursday that it is launching a new auto matching and auto allocation facility called portfolio loans. These will be split into two types: single company portfolio loans and diversified portfolio loans.

Single company portfolio loans are designed for borrowers seeking flexibility, Ablrate said. This could be developers who require multiple tranches in multiple draw downs, a company that needs to regularly bridge-fund asset purchases or invoices, or a company that is expanding through asset purchase.

The diversified portfolio loans product enables Ablrate to accept potential borrowers whose requirements did not fit the platform’s self-select model. This could be because the loans are too small (below £100,000) or too short a term.

Each investor’s funds will be automatically diversified across all loans in the portfolio.

Ablrate is planning to launch its first portfolio loan alongside a new user interface in January.

Read more: Ablrate considers expansion into debt securities

“We note the survey by Robo.cash that discovered auto-lending was the top functionality voted for by lenders,” said Ablrate chief executive David Bradley-Ward.

“Having topped £30m in total loans and being a few thousand off £12m traded on the secondary market, we think the time is right for the new feature to be launched.

The ease of lending will appeal to an ever-growing section of our community that want the best of both worlds, quality high yield self-select loans and an auto lending facility.”

Read more: Ablrate’s David Bradley-Ward on the IFISA

Automated functions are growing in prevalence in the P2P lending space, which is the subject of fierce debate in the industry. Funding Circle scrapped it manual lending option in September this year, meaning the big three platforms purely offer auto-bid investing now.

Ablrate has lent out more than £30m since launching to the public in 2015, with £12m traded on its secondary market. The platform’s Innovative Finance ISA, which launched in August, has already attracted over £3m.

“We haven’t really publicised our IFISA widely so to attract over £3m since the mid-August launch is not a bad result,” said Bradley-Ward. “We need to keep pushing forward however, as such we are now able to launch this new facility for lenders and borrowers.”