A new pawnbroking and property peer-to-peer lending platform, Connective Lending, has launched.
After receiving authorisation from the Financial Conduct Authority, the platform has introduced its website under a beta-testing-phase for an initial three-month period.
During this stage, it will be introducing a small portfolio of loans secured against luxury assets and aims to onboard up to 500 investors. In the coming days and weeks Connective Lending will add new loan opportunities for investors.
After this stage is completed, the platform, which in December announced its plan for a soft launch, will look to introduce property bridging loans secured via a first charge only.
Connective Lending will be targeting returns of between five per cent and 16 per cent to both retail and institutional investments. All of its loans will be secured against mortgage-free properties, or personal assets such as jewellery, gold or antique cars.
Lenders can choose the level of risk that they are comfortable with based on the loan-to-value (LTV). These tranches range from a maximum of 70 per cent LTV downwards meaning that each investor can spread their risk.
Kristian Henery heads Connective Lending’s property lending division. He has 18 years’ experience in property lending, the majority of which spent around underwriting.
Co-founder Daniel Grimes, who has 24 years’ experience owning and running a small chain of pawnbrokers, heads the platform’s personal asset lending division.
The other co-founder is Norman Akram, who has experience in fintech and P2P, including being a founder of FundingSecure, a P2P platform which entered into administration in 2019.
“Norman and I met after he left FundingSecure,” Grimes said on the P2P Independent Forum.
“We cannot comment on the direction of FundingSecure or any other company though what we can say is our application to become a licensed P2P lender began before and during the time FundingSecure went into administration.
“We know that regulators, in their long and detailed scrutiny of our application, identified who we are and what we have done before.
“We would kindly ask you to draw your own conclusions from those facts.
“Since founding Connective Lending in 2018 we have been focusing on developing a business based around the directors’ direct experience of lending against specific assets and achieving full authorisation as a P2P platform.
“We have taken our time in strengthening our proposition and developing our model which we look to continuously improve upon internally including using feedback from our members.
“I entered this business with the knowledge that my experience of lending my own money and Norman’s experience of P2P lending will help create an outstanding company that can be very successful with both lenders’ and borrowers’ interests at its heart.”
Connective Lending said it is discussions to recruit more people to its property team.