ThinCats Australia Enters P2P Lending Market, Targets SMEs


thincatsThe latest peer-to-peer lender to set up shop in the Australian market, ThinCats Australia has introduced something different to the model by using finance brokers as intermediaries. ThinCats Australia is a joint venture between local investors and ThinCats UK, which was established in 2011 and to date has loaned nearly £100 million.

sunil aranhaThinCats is a specialist lender to small business. Borrowers must apply through a “sponsor” – a licensed finance broker – who vets the applicants and helps them prepare their documentation. ThinCats Australia chief executive Sunil Aranha said P2P lenders providing unsecured personal loans to consumers could rely on credit scoring technology but lending to SMEs required the involvement of a sophisticated lender who could understand the application. “When dealing with a business the lender needs to make an assessment of its cash flow position, inventory management, the industry it is in, the business risks and so on,” Aranha commented.

Australia MapThe brokers play an important role in helping prepare the applicant’s documentation and providing quarterly updates on each loan account. Targeting the market of high net worth investors and self-managed superannuation fund trustees who are self-directed investors, Aranha said ThinCats’ sweet spot was loans worth around A$250,000 and the default rate in the UK was two per cent. ThinCats will lend from A$50,000 upwards. ThinCats’ agreement with its lenders gives the P2P lender the authority to pass a loan in default to a debt collector.


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