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Peer2Peer Finance News | June 26, 2019

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Lending Works increases lender rates to fund increased originations

Lending Works increases lender rates to fund increased originations
Marc Shoffman

LENDING Works has increased the rate on its five-year product in an effort to boost funds available for incoming originations.

Investors can now earn 6.5 per cent – up from six per cent previously – with the consumer peer-to-peer lender by backing loans that last for five years.

The rate on Lending Works’ three-year loans offering has been maintained at 4.5 per cent.

Lending Works said the increase would not mean a hike in rates for borrowers.

“We wanted to encourage originations following the addition of new loan acquisition partners,” a spokesman for Lending Works said.

“We’re predicting a great period of growth over the next few months and the rates increase is all part and parcel of this.”

Read more: Lending Works unveils Open Banking partner

The Lending Works loanbook is currently at £137m.

It has made more than 22,000 loans and has more than 5,000 lenders.

At the start of this year, Harding told Peer2Peer Finance News that he wants the platform to have lent at least £1bn by 2022.

The platform received £2.8m of private equity funding in July 2018.

The capital raise  was led by UK private equity house Maven Capital Partners, with £800,000 of backing from Pollen Street Capital and NVM Private Equity.

Lending Works said the proceeds will be used to fund growth through further investment in sales and marketing and in the company’s strategic partnership channel.

Read more: Lending Works passes £100m lending milestone