Loanpad, a UK-based peer-to-peer (P2P) lending platform, is set to close its equity crowdfunding campaign on Seedrs with more than £420,000 raised. The funding round, which launched last month, originally sought to raise £250,000. It has so far attracted more than 360 Seedrs investors.
Founded in 2015, Loanpad providers a “user-friendly, lower-risk” platform for investors to earn “inflation-busting” interest through shared short-term property loans.
“Our innovative structure effectively shields our customers from much of the risk of peer-to-peer lending by partnering with established property lenders, who take on both higher risk and return. We charge no upfront fees to customers, instead taking a portion of interest earned from borrowers. In other words, we earn when our investors earn.”
Loanpad further revealed that investors may invest through its Classic and/or Premium accounts (both ISA eligible). The Classic account pays 3% and allows daily withdrawals. The Premium account pays 4% and 60-days’ notice is required for withdrawals. Loanpad noted that to date, it has not charged fees on loans as it considers itself to be better to remain “uber-attractive” to lending partners at this early stage of growth.
“In due course, we intend to charge small fees on loans and this will present a considerable boost to income.”
Funds from the Seedrs campaign will be used to continue the growth and development of the Loanpad platform. The company is now offering 1.81% in equity at a £15.7 million pre-money valuation through the round.
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