As promised yesterday, here is the remainder of the coverage of the FCA response to MP Andrew Tyrie's queries regarding peer-to-peer (P2P) lending.
Meanwhile, our latest B+ loan offering is just launched on site. It has a five-year term and a gross indicative yield of 9 per cent. The purpose of the loan is to fund franchise expansion of Subway sandwich-shop franchises.
Here's an excerpt of the borrower's statement:
"In the last year sales of the three restaurants exceeded £700,000 and are expected to continue to grow. To build on the success to date, the business plans to acquire six additional (existing) sites in Northamptonshire. All the Subway sites are well established in strong locations, with all but one having been run for over a decade. In the last eighteen months the vendor has made a significant investment in refurbishing all the Northamptonshire restaurants to meet the latest subway brand concept. On average the Northamptonshire sites serve 8,000 customers per week, with weekly takings in excess of £30,000. While the business already generates sufficient profit to comfortably service the loan the current owners have not fully exploited opportunities to maximise profitability. Under new ownership there are plans to enhance the marketing strategy of the business, with particular focus to be placed on providing catering services to local businesses. There is also an opportunity to introduce a breakfast sandwich range, which has proven to be popular among existing customers in the Leicestershire sites."