CROWD2FUND has expanded into the secured property lending sector, which it hopes will attract more risk-averse investors.
As Peer2Peer Finance News reported last month, the peer-to-peer lender will provide loans secured against commercial property from a minimum of £100,000, offering investors returns of six to eight per cent.
The platform said on Monday that the maximum loan size of this type would be £1m and would typically last for a duration of three to five years.
“The launch of our property loan gives investors access to an asset class which has performed steadily over time and is easy to understand,” said chief executive Chris Hancock.
“These asset-backed loans are likely to be popular with P2P crowdfunding investors new to the market due to the perception of them being less risky than standard loans, which do not have security taken out on them.”
The first property-backed loan on the platform is set to be a £300,000 campaign for Mark Marengo, a Savile Row tailor with international expansion plans.
The property loan product qualifies for inclusion within Crowd2Fund’s Innovative Finance ISA, which contributed to the firm’s record-breaking first quarter of this year.
The firm reported 4,700 per cent year-on-year growth in the number of deals financed through the platform, with 95 per cent of its investments made through the tax-free wrapper.
Crowd2Fund has been expanding its product range lately, having launched a new “venture debt” offering last month that enables early-stage companies to access debt finance.