RateSetter exits unsecured business loans market
RATESETTER is winding down its unsecured business lending after a review of its commercial finance propositions.
The peer-to-peer platform said its commercial finance product suite will focus solely on property-backed and asset-backed lending.
Business borrowers will now only be able to access property-backed development and investment loans or asset-backed hire purchase deals.
All existing unsecured business applications will be processed and will continue to repay in line with their schedule, the platform said.
Read more: RateSetter earmarks February 2018 IFISA launch
It is not believed that this will impact the lending rates on offer or default expectations. Personal loans, which are a bigger market for RateSetter, will be unaffected.
The platform will also continue to expand into the car finance market, which it highlighted as a growth area last year.
“By simplifying our commercial finance product offering and focusing our resources on lending secured on property and other tangible assets, we have a clear framework around which to grow our commercial finance volumes and continue to deliver access to healthy returns to investors,” Rhydian Lewis (pictured), chief executive of RateSetter said.
This may result in bigger loans being issued but as investors typically have their money automatically spread across a range of loans they may not notice the difference.
The move leaves Funding Circle and MarketInvoice as the only major P2P lenders offering unsecured business loans.
Read more: P2PFN’s exclusive interview with RateSetter CEO Rhydian Lewis
