P2P Lender Lendable Signs £300 Million Loan Deal With Castle Trust

Peer-to-peer lending platform Lendable has entered into £300 million loan deal with investment and mortgage firm Castle Trust. This news comes just a couple weeks after the online lender hit its £100 million milestone. Founded in 2014, Lendable describes itself as a peer-to-peer lending platform that makes borrowing money effortless. The lender revealed:

Using technology, we have trimmed the fat from the traditional loan application process. The result allows us to make an instant decision, offer personalised rates, and transfer funds within minutes. We look beyond applicants’ credit score, offering loans to people with less-than-perfect credit histories, and charging them less than banks. This way, we provide fair rates to a wider range of borrowers.”

Castle Trust noted that its investment products are typically fixed-rate bonds with terms of one and five years. The company noted that it aims to pay higher rates than the best deals offered by deposit takers, such as banks and building societies, so that customers may feel confident that its pricing is more consistently competitive. According to AltFi, the agreement with Lendable is Castle Trust’s second major transaction in the alternative finance industry this year. The company acquired Omni Capital Retail Finance in January. Speaking about the Lendable agreement, Founder and CEO of Castle Trust, Sean Oldfield, stated:

“Castle Trust is excited to partner with Lendable as they grow their footprint in the UK consumer lending space. Following extensive review of the market we concluded that Lendable’s focus on machine learning and innovative distribution channels was consistent with the approach taken on our own originations to generate maximum value for customers and capital providers. We continue to seek further investments in the rapidly evolving alternative finance market.”

Martin Kissinger, Founder and CEO of Lendable, then added:

“I’m pleased that another large institution is coming on-board at Lendable and joining our marketplace of institutional and private investors. Our loans have consistently delivered market-leading risk-adjusted returns, and Castle Trust’s engagement allows us to further grow our lending portfolio in 2018 and beyond.”

 

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