The CEO of the P2P lender has said that 2017 is the year the company intends to “ramp up” its lending to businesses as well as consumers.
Speaking to SME Adviser, RateSetter CEO Daniel Foggo said that this year the P2P lender, which offers borrowers low interest rate secured and unsecured personal loans, intends to extend its focus to small businesses.
“We just took over $100 million in loans funded, and most of that is lending to consumers,” he explained. “2017 is the year we're really going to ramp up our lending to businesses as well as consumers.”
“It’s quite exciting, and it’s in part because we want to provide our investors with a very diversified portfolio of loans: some consumer loans and some business loans.”
Mr Foggo elaborated that RateSetter intends to increase its flexible lending to businesses that are investing in their growth.
“We lend from six months to five years, we're flexible in terms of the security arrangements, but most importantly, we're able to offer really good rates,” he said.
“Our funding costs are really competitive, and we don't require the borrower to put up their home as security for the loan, we find other security arrangements that work for the borrower.”
Mr Foggo told SME Adviser that since launching at the end of 2014, RateSetter tripled its loan volumes in 2016, and expects to triple that number again this year.
“We've now got just under 6,000 members on our platform, which I think shows that P2P lending is starting to move towards the mainstream for investors in Australia,” he remarked.
[Related: The alternative lender]