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Which Peer-To-Peer Lending Sites Have Institutional Lending?

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By on 15 July, 2019 | Read more by this author

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 the peer-to-peer lending sites 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 peer-to-peer lending companies have with institutions in Is Institutional Lending In Peer-To-Peer Good For Individual Lenders?

Where are institutions lending in peer-to-peer?

Assetz Capital* 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 Capital 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.

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.

HNW Lending*, the asset-backed P2P lending company, has “several” institutional lenders.

We know that institutions have lent over £30 million already to buy-to-let landlords through Landbay*, and possibly a lot more than that. Another £1 billion of institutional loans has been added on top from a “major financial institution”, which I wrote about in Does Landbay's £1 Billion Deal Affect You?

Lending Works*, which, like Zopa, does personal loans, has attracted at least £10 million in lending from unnamed institutions.

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 Capital 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 peer-to-peer lending sites, Funding Circle and 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.

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 Capital 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.

Read Is Institutional Lending In Peer-To-Peer Good For You?

Read Does Landbay's £1 Billion Deal Affect You?

This month, to read about P2P lending from government institutions, such as national investment banks, sign up to our newsletter.

*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 Capital, CapitalRise, Growth Street, HNW Lending, Landbay, Lending Works, Loanpad, Proplend, RateSetter, Relendex and Zopa, 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 How we earn money fairly with your help.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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