ARCHOVER has launched an auto-investment product, offering target returns of up to 6.4 per cent.
The peer-to-peer business lender said on Monday that the new offering – which it calls its Investment Plan – will improve accessibility for retail investors and diversity for institutional investors.
It has lowered its investment threshold for the auto-invest product. Whereas ArchOver’s manual lending option requires a minimum investment of £1,000, its new Investment Plan requires just £250.
Each Investment Plan will be spread across a minimum of 10 secured investment projects on the platform.
“P2P was established to democratise finance,” commented ArchOver chief executive Angus Dent (pictured).
“We knew there was demand from potential investors who could benefit from our model, but didn’t necessarily want to lend borrower-project-by-borrower-project, including investment houses that require a more diversified portfolio with cross-sector exposure. Institutions using the service will now be able to let ArchOver administer their portfolio for the first time.
“We also wanted to provide a portfolio lending strategy for private investors. With the entry point at £250, our platform will now be accessible to an even wider group of people.”
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ArchOver connects retail and institutional investors with UK-based small- and medium-sized enterprises looking for finance. The businesses must have been trading for at least two years and there is a minimum loan size of £250,000.
ArchOver offers loans for any business purpose, typically for working capital. Its flagship product is its ‘secured and insured’ model, which allows lenders to invest in loans secured against a company’s accounts receivable, where those accounts receivable are insured.
ArchOver has facilitated over £80m in funding to date, with investors receiving annual returns of up to 10 per cent.