ArchOver exits P2P market, citing costs and regulation
Business lender ArchOver is exiting the peer-to-peer lending market and will not be accepting any new retail lenders to its platform, effective immediately.
The platform blamed costs and regulation, as well as ongoing economic volatility for the decision.
“Our focus to date has been on P2P, but costs and regulation alongside unpredictable lender appetite during these volatile times means we needed to move to a model that gives us volume and security of funds, and that means institutional money,” explained Charlotte Marsh, ArchOver’s managing director.
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The business lending platform was founded in 2014 and since then it has delivered more than £160m in loans to British businesses. It has also developed a number of cash-flow lending products, as well as its unsecured R&D and grant advance funding.
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“With the full support of our owners Hampden Group, we will be refinancing and winding down the retail lender element of our loan book over the course of the next two years,” said the company’s chief operating officer Ian Anderson.
“We have seen significant borrower demand for our lending products over the last year, notably in the £750,000 plus range and we will be looking to capitalise on that market moving forward.”
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