Loanpad chief expects “steady stable growth” in 2022
Loanpad is preparing for “steady stable growth” this year since reaching profitability month-on-month from June, despite posting an overall loss of £69,713 in 2021.
Chief executive Louis Schwartz (pictured) said the peer-to-peer property lending platform reported the loss for the year on Companies House due to the losses in the first five months of 2021 being larger than the profits created from June to December.
He said the platform’s revenues have been growing as the platform’s size has increased while its costs remain the same, and profits have risen every month since June.
Loanpad hired four additional staff members in 2021 to take the count to 10 overall and Schwartz said that the platform currently has eight lending companies with two more in the pipeline to be added over the next few months and the figure will soon reach 10 to 12 “before long” as the P2P lender grows.
Schwartz said during the pandemic the platform has received sign-ups of new lenders that have left platforms that have exited the retail space or collapsed and is expecting “steady stable growth” for 2022.
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“Profitability from June means we have been profitable on a monthly basis since June when we exceeded our costs, but of course were loss making before that,” he said.
“2022 full year should show a good profit but it’s too early to speculate on what that might be. We are very happy with performance and levels of growth, and this is mainly down to increased awareness of our products and our very stable performance.
“As the platform grows, our revenue grows but the costs aren’t increasing at the same speed as revenues, so we don’t see any problem in terms of being profitable for this year but who knows what the year holds, and we will have to wait and see.
“We’ve been growing the team somewhat over the last few months and are still profitable even with those extra hires. We are currently doing a software upgrade and once that’s completed in the next couple of months, we have a marketing campaign planned that should slightly accelerate growth as well.
“We expect steady stable growth for this year as we have over the last few years. We have no major changes planned, we just expect more of the same.”
In October, Schwartz said Loanpad reached profitability in June, was onboarding another borrower and might introduce new products as it continues to scale.