PEER-TO-PEER payday loan platform Welendus has raised more than 25 per cent of its crowdfunding target just a week after launch.
As of Monday morning, it had raised just over £75,000 from 55 investors.
“Welendus is tackling financial inclusion while funnelling the return back to the society,” said Nadeem Siam, founder and chief executive of Welendus.
“Welendus will offer cheaper more ethical loans for short-term borrowers and high returns for lenders with short-term investment flexibility and a guarantee account protection. A win-win business model for all parties.”
The platform is offering equity of 8.02 per cent through Seedrs in a 60-day campaign.
The pitch says the platform plans to offer returns of up to 15 per cent to lenders and offers an APR at 172 per cent for borrowers, compared with up to 1,294 per cent in the wider payday lending market.
Borrowers will also get flexible terms and no penalty fees.
The money raised will go towards recruiting new staff, marketing, technology and initial funding for a guarantee account.