ArchOver has reported “unprecedented” demand from retail investors as it begins to start lending again on its secured loan product.
During the Covid-19 pandemic, the peer-to-peer business lending platform has been focussing on managing its loanbook and supporting its existing borrowers.
But recently it began testing demand from investors, following on from its survey of investor appetite in late April. It said it has seen “record-breaking activity” in funding its secured loans, many in a matter of minutes.
“The vast majority of our secured borrowers have weathered this storm well and in fact some have seen significant revenue uplift,” said Charlotte Marsh, managing director of ArchOver.
“We will be opening secured loans for both our existing clients and new clients moving forward.”
Hugo Smyly, portfolio manager at ArchOver, said that the platform had seen a return to confidence among its investors in recent weeks.
“There was initial concern amongst our base how Covid-19 would influence their investment strategy, but as the weeks have gone by there is a clear message from them that investing in successful UK businesses is an important part of their overall portfolios,” he said.
ArchOver also has an unsecured lending product. It recently reported strong interest in its ‘Advances’ product, which offers unsecured loans to businesses backed by research and development tax claims or government grant receipts.
The firm widened its losses to £1.34m in 2019, during a year in which the platform restructured its team and simplified its business model.