Collateral considers shifting platform to smaller P2P loans
SECURED loans provider Collateral is reassessing its business model after finding the projects on offer are too big for its investor base.
The peer-to-peer platform, which provides finance secured on land or property, said in a note to investors on Monday that it had become clear that larger development loans were beyond the reach of users at the moment.
“We have been working hard behind the scenes to amend our business model to match the requirements of our lenders,” the platform said.
“We are aware that some of the loans are too big for the platform currently and we are actively working with the borrowers to refinance some of these larger loans.
“It’s apparent that the larger development loans are beyond the reach of our lender base at the moment. We will now concentrate on bringing smaller, more manageable loans to the platform.”
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Investors can currently get up to 15 per cent interest for funding loans on Collateral. The platform says it will lend between £5,000 and £1m upwards.
The lender previously offered pawnbroking-style loans against items such as jewellery and cars but shifted towards land and property at the end of last year.
It has 1,600 registered users and a loanbook worth more than £21m.
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