RATESETTER has named leasing and asset finance specialist Corporate Asset Solutions (CAS) as its partner in the launch of new hire purchase loans on the peer-to-peer platform.
Businesses will be able to access hire purchase agreements for up to £750,000, processed by CAS.
RateSetter, which first unveiled plans to enter the hire purchase market last month, will do the due diligence on loan applications and full security will be taken on the underlying assets.
“Hire purchase is a logical area for us to expand into: it allows us to help good quality businesses who want to expand or become more productive,” Paul Marston, managing director of commercial finance at RateSetter, said.
“We take full security over the asset which provides an extra layer of protection.
“We have chosen CAS as partners as we build this new area of business based on their considerable understanding of this market and their origination capability.”
The move comes as the platform saw its loanbook pass the £2bn milestone, made up of £1.3bn lent to individuals and £700m to businesses.
Launched in 2010, RateSetter now has 55,000 lenders and 368,000 borrowers.
“Less than seven years ago, we wrote the first RateSetter loan from my living room,” Rhydian Lewis, founder of RateSetter, said.
“It has been fantastic to see the development of the business since and this £2bn milestone is an exciting moment for RateSetter, as we continue to experience strong growth.
“Of course, the real measure of good lending is whether loans perform and money is repaid. I am delighted that £1.3bn has been repaid to date, delivering more than £76m in interest to people across the country who lend through RateSetter’s platform.”
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