Peer to peer lending platform FOLK2FOLK has relaunched its product range offering more flexibility and higher interest rates for SMEs and investors.
The new products offer borrowers a starting rate of 0.38 per cent per month. Borrowers can access loans up to a maximum 60 per cent loan to value.
For investors the interest rates range from 4.5 per cent to 9 per cent per annum at a 60 per cent LTV threshold.
In addition, from the start of the new tax year in April, Folk2Folk will no longer charge an annual administration fee for their Innovative Finance Isa product.
FOLK2FOLK matches investors with local businesses with a view to creating value through the creation of local jobs, talent retention and bolstering supply chains.
Giles Cross, chief executive officer at FOLK2FOLK, said: “In today’s low interest rate environment, savers and investors alike are always looking to maximise their returns.
“The majority of our retail investors are in the ‘at retirement’ stage of life, where the interest they receive on their capital is often life changing and we believe that the range of opportunities we will now be able to present to our investors will further bolster and reinforce that position, helping those who lend through us to lead and enjoy the best lives possible.”
He added: “The same applies to our borrower customers. With SMEs still struggling to access finance via traditional sources, our common-sense approach to lending continues to deliver value.
“By introducing some measured flexibility around our interest rates and required levels of security we’re able to help even more credit-worthy businesses access the finance they need to grow, develop and thrive.”
Patrick Connolly, chartered financial planner at Chase de Vere, said: “Peer to peer lending has become very popular and as a result competition between different platforms has been increasing.
“This should provide a better deal for investors. However, despite the high interest rates advertised, we don’t recommend peer to peer to our clients because of the risks involved including the lack of FSCS protection.”
Article written by Jennifer Turton. Image and article first appeared in FT Adviser on March 12th 2019. (Image taken from original article)