UK: HNW Lending, a P2P Platform, Reports Topping £140 Million in Loans

HNW Lending says it has surpassed £140 million in online lending. As the name implies, HNW means high net worth individuals.

Regulated by the UK Financial Conduct Authority, HNW Lending is a peer-to-peer lending platform that enables asset-backed loans for UK-based individuals and businesses, with loan sizes ranging from £30,000 to £3 million.The platform was founded in 2014 and reports that it has been profitable every year since its launch.

HNW Lending generates revenue through arrangement fees, origination fees, and interest fees. Since its launch, investors on the platform are said to have earned an average of 10% per annum in returns.

Ben Shaw, CEO of HNW Lending, said they are very interested in how much money their investors are making.

“Our success over the past 10 years is due to our ability to find borrowers prepared to pay double-digit interest rates with good assets to back up their loans so that our investors can earn interest rates that average about 10% p.a. We have grown our loan book slowly to about £40m and have transacted over £140m in loans, which reflects the stability of the platform and the trust that our investors have in us.”

Investors need to have at least £10,000 to lend.

Approximately 250 investors are said to be currently active on the platform, with the average investor having around £80,000 invested on the platform’s IFISA, while non-IFISA investors have an average of £141,000. A number of investors have more than £1m invested in HNW Lending loans.

Shaw reports that many investors increase their allocations over time after experiencing double-digit returns.

Shaw says that investors tend to start with modest amounts and once they see the performance they increase the amount of money committed to the loans.

Shaw reports that “very, very few cases where investors don’t get paid either interest or capital in full.”

“We will continue to deliver good and arguably even better returns because interest rates have moved up a bit. HNW Lending is here to stay and the loan book is only going to get bigger.”

 



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