Rate setter row of mugs

Peer-to-peer lender RateSetter passes £2 billion in loans

31 July 2017

Peer-to-peer lender RateSetter announced today in London that it has passed £2 billion (AU$3.29 Billion) in loans over its platform, with more than £1 billion of the total made since the beginning of 2016.

Founded in 2010, RateSetter enables consumers to lend their money directly to businesses and individuals over its online platform. RateSetter launched in Australia in 2014 where the Peer to Peer lending market is forecast to grow to $22 billion in 2020

Close to £1.3 billion of the RateSetters total loan book has been loaned to individuals, with £700 million going to businesses. The company confirmed it now has 423,000 customers, the majority of whom are borrowers, securing its position as the largest peer-to-peer lender in the UK by customer numbers

CEO and Founder Rhydian Lewis commented that “Less than seven years ago, we wrote the first RateSetter loan from my living room. It has been fantastic to see the development of the business since and this £2 billion milestone is an exciting moment for RateSetter, as we continue to experience strong growth”.

“Of course, the real measure of good lending is whether loans perform and money is repaid. I am delighted that £1.3 billion has been repaid to date, delivering more than £76 million in interest to people across the country who lend through RateSetter’s platform.”

RateSetter is one of the “Big Three” peer-to-peer lenders in the UK, alongside Funding Circle and Zopa. Funding Circle and Zopa have both also lent over £2 billion since launch.

RateSetter pioneered the Provision Fund, which spreads a lender’s risk across the whole loan book and is designed to cover any initial losses incurred on loans. Borrowers make risk-weighted payments into the Fund, which steps in to reimburse the lender if a repayment is missed.

Earlier in this month, RateSetter announced that it had taken over two small businesses and taken a minority stake in a third, to protect investors from possible losses and extend its lending operation.

In May this year, RateSetter announced they had secured £13 million in equity funding from existing shareholders, including Woodford Investment Management and Artemis.

 

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