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Peer2Peer Finance News | July 21, 2019

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Sancus launches bridging and development lending platform

Sancus launches bridging and development lending platform
Suzie Neuwirth

THE SANCUS Group has launched a new online platform for bridging and property development finance.

The alternative finance group said that the new platform will provide funding opportunities for institutional and high-net-worth investors, via its peer-to-peer lending subsidiary Sancus Funding.

There is a minimum investment of £100,000 and loan sizes will start from £500,000.

Read more: Sancus tightens credit processes amid no-deal Brexit fears

“There is significant demand in the bridging and development finance market in the UK where the fundamentals for alternative finance remain strong and we are pleased to have recently completed the first loan on our new electronic trading platform,” said Dan Walker, managing director of Sancus Funding.

“The group passed the £1bn funding milestone earlier this year, and with significant growth over the last few years in asset-backed lending, this is the right time to direct more resources towards expansion in the UK market,” said Andrew Whelan, chief executive of The Sancus Group.

“We have made significant investment in technology to support this growth, allowing us to concentrate our efforts into robust credit processes, which remain a key strength of the business.”

The Sancus Group launched in 2013, providing asset-backed lending in Jersey before expanding into Guernsey, Gibraltar, the Isle of Man and Ireland.

The Sancus Group’s parent company, Aim-listed GLI Finance, fell into the red last year due to the weaker performance of its Fintech Ventures portfolio. GLI reported operating losses of £2.3m for the year ended 31 December 2018, compared to a £101,000 profit the previous year.

GLI’s Fintech Ventures arm – which invests in fintech lending platforms – wrote off £19.6m across eight platforms in 2018, which was attributed to challenges in securing additional growth capital.

However, GLI’s lending division Sancus BMS reported revenue growth of 28 per cent to £13.3m, and operating profit before credit losses of £2.8m, up 82 per cent from 2017.

Read more: GLI bosses received over £750k in bonuses despite 2018 loss