Landbay is a FinTech lending platform with an exclusive focus on real-estate-related loans. Now it has a mystery backer, as it explores the institutional route to expansion. That type of link-up is very much on-trend in the direct lending sub-sector of Fintech.
Buy-to-let mortgage lending platform Landbay this morning announced a funding partnership with an unnamed UK bank.The partnership will see the deposit-taking bank fund mortgages originated by Landbay, with mortgages held on the bank's balance sheet.Landbay declined to reveal which bank the partnership is with, but said the move would help to further strengthen the platform's institutional funding and allow it to launch new lending products.
Historical Performance And IFISA Process Guide
Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee).
That figure is the result of over £21 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders' capital is at risk. Read waREAD MORE
The coronavirus crunch has made it harder to find small- and medium-sized enterprise (SME) loans that are "safe options" for peer-to-peer investors, Money&Co. founder Nicola Horlick has said.
Horlick, known as the City superwoman, said the economy was already slowing before the pandemic and its priority is currently preserving capital and investing in technology to support staff working from home.It comes as the P2P business lender revealed in its latest accounts for the 12 months to March 2020 that it posted pre-tax losses of £499,176, down from £547,679 a year before."The company's heritage lies in making loans to SMEs," Horlick said in a director's report seen by Peer2Peer Finance News.s"The company continues to look for opportunities to lend in this area and has supported its current borrowers through the pandemic."However, the severe economic downturn that has occurred due to the Covid-19 crisis has made it harder to find safe options for our lenders in this area.
"It should also be remembered that the economy was already slowing before the pandemic due to the uncertainty created by Brexit and that there is still a possibility that the transition period ends with no EU trade deal, which would result in a further economic shock."