Which Peer-To-Peer Lending Sites Have Institutional Lending?
Peer-to-peer institutional lending – that's lending from banks and the like – is becoming a bigger theme as the P2P industry grows. And institutional lending could actually impact individual lenders' results.
Below, I'm listing a lot of thesites that have been the beneficiaries of institutional lending, excluding lending from governmental institutions.
Where possible, I name the institutions and say how much that we know the P2P lending sites have received.
You can get more details about the specific arrangements many of these Is Institutional Lending In Peer-To-Peer Good For Individual Lenders?companies have with institutions in
Bear in mind that a lot of marketing talk is often behind big, vague statements like “We're backed by many institutions”. So the more solid figures or solid the names, the more “real” you might expect it to be – on average. For example, the CEO or marketing director of a P2P lending company might, in their heads at least, classify a very wealthy investor is as an “institutional investor”.
Where are institutions lending in peer-to-peer?
Assetz * has around 10% institutional lending and has told 4thWay it's aiming for a 50/50 split. One of the institutions that has used Assetz is Varengold Bank.
CapitalRise, a London-focused property lender, is receiving at least £30 million from an institutional lender.
CrowdProperty recently closed a deal for £100 million with an anonymous institution.
Folk2Folk counts Forest of Dean District Council and Cheltenham Borough Council among its registered lenders, although we have no details about whether they have lent any money.
Funding Circle has been arranging well over £1 billion in institutional lending, since at least 2013.
Growth Street, which provides overdraft-like lending facilities to businesses, has had some institutional lending. (Growth Street is no longer open.)
HNW Lending*, the P2P lending company, has “several” institutional lenders.
Loanpad* sources loans from the family firm Handf, which has been around since the 1980s.
Octopus Choice lends with two other companies in the Octopus Group, the institution Octopus Property as well as Octopus First Loss. The latter takes the first 5% loss on any bad debt for individual lenders, and has lent around £20 million.
Property Partner works with Proseed to fund loans.
Propio lends lenders' money in a junior position to Pivot and Fruition. Propio shareholders are also shareholders in those two institutions.
Proplend* has had at least £8.5 million lent through it by institutions.
Two of the big-three Zopa, seem to have huge sales targets to gain more institutional lending. RateSetter, on the other hand, has deliberately focused on the individual lender, with just a small proportion of its lending done through institutions.sites, Funding Circle and
Relendex* is receiving at least £72 million from a “global institutional investor” over two years.
ThinCats has a deal to lend £300 million for Insight Investment. ESO and Waterfall Asset Management committed a further £100 million, and another £100 million was also coming from other institutions.
Zopa has deliberately attracted a great deal of lending from financial businesses, including Metro Bank and P2P Global Investments, the investment trust.
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*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Assetz How we earn money fairly with your help., CapitalRise, HNW Lending, Lending Works, Loanpad, Proplend, RateSetter and Relendex, and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read