PEER-TO-PEER business lender ThinCats will expand its lending programme after securing a £300m funding agreement with global asset manager Insight Investment.
ThinCats said it will use the investment along with £300m from existing investors to create a potential £600m funding stream for UK small- and medium-sized businesses (SMEs).
The P2P lender said loans ranging from £100,000 to £10m will be available to SMEs in all UK regions and business sectors.
“We have responded to a market need to provide lending at a cost of capital that reflects the lower risk associated with established strong businesses and thereby offer a real alternative to bank funding,” said Damon Walford, chief development officer at ThinCats.
“By combining big data and technology, with dynamic credit and client servicing skills, we are simplifying traditional lending models.
“With our interest rates now starting at five per cent, this new programme puts us right in the mix with traditional lenders.”
ThinCats provides funding of up to five years to companies with asset backing or reliable cashflow for working capital, acquisition, refinancing or growth.
“We have worked closely with the ThinCats investment team and been impressed by their focus and clear commitment to developing a resilient long-term lending platform for SMEs,” said Shaheer Guirguis, head of secured finance at Insight Investment.
“In an era in which banks are retrenching from certain lending markets due to regulatory considerations this is a concrete example of how institutional investors such as pension funds and insurance companies can step in to support SMEs and UK economic activity across the country.”
ThinCats has originated more than £300m of business loans to date. Institutional backing has helped the platform scale up its lending with larger deals. Earlier this year it facilitated a £10m loan to support aerospace and defence manufacturing group Dynamic Industrial.