Peer to peer lender Growth Street is reporting solid growth. The online lender said it has captured over 600 investors since platform launch at the end of 2016. Growth Street is a platform that provides online financing options for UK SMEs. The company also touted its review on 4thWay that categorized the P2P lender as one of the lowest risk platforms in the industry.
Growth Street can provide flexible working capital finance to British businesses, funded by a mix of individual and institutional investors as a marketplace lender. Growth Street says that all investors participate equally in a process that matches borrowers and lenders for 30 days. Due to the short loan length, investors can withdraw funds at 30 days’ notice. Investors may choose to re-invest their funds automatically. Growth Street also provides an overdraft alternative for business borrowers.
Growth Street provisions for losses with the aim to reduce the impact of borrower defaults on lenders and to diversify an investor’s credit risk across the whole portfolio. Growth Street says these measures have helped ensure that no investor has incurred any losses as of the time of writing.
Greg Carter, co-founder and CEO of Growth Street, commented on early success;
“Our borrowers successfully navigated an uncertain economic landscape in 2016, averaging annual revenue growth of over 24% while maintaining strong profit margins of 10%. The capital from our investors can help them continue this impressive track record in the coming year.”
Growth Street has received Appointed Representative status by the Financial Conduct Authority (FCA).