A FOOD producer funding platform has expressed interest in partnering with peer-to-peer lending platforms as it looks to scale up the business.
PrimeStox, founded by mining and metals analyst Joseph Cherrez and horticulturist Jenny Louw, lets retail investors support food producers by funding production of their goods and sharing in the profits once they are sold.
Cherrez told Peer2Peer Finance News that PrimeStox’ operating model is similar to that of a P2P lender, although the platform’s activities do not fall under Financial Conduct Authority regulations.
He said that a food wholesaler or P2P platform may be a good partner for PrimeStox as it seeks to grow.
“We are open to partnerships,” Cherrez said. “We are currently growing slowly but if we could find a partner it would be a good way to expand.
“The original idea was a fusion of a food wholesaler and a lender.
“Working with others could help improve the stock ownership concept.”
Investors choose a product they like and purchase it through PrimeStox, which passes the funds over to the food producer. The producer must then estimate how long it will take to make and sell the product, and pay an agreed rate of return.
In the event that the food producer does not pay, the investor holds legal title over the product so can pursue court action or take legal ownership of the goods.
Interest on projects has ranged from four per cent to 12 per cent with around £40,000 lent on average.