Demand for Working Capital Business Loans is staggering – 7.1M listed within weeks, with another 1M in pipeline
The obvious need for working capital business loans in Australia is evidenced by recent demand from the newly launched only Australian business peer to peer lender, Marketlend.
Within a month, Marketlend has 7.1 Million loans listed on the marketplace from borrowers with strong credit and significant asset positions, and another 1.2Million in the pipeline. It is obvious that the need for working capital business loans is not filled by the major banks, or corporate credit providers.
The borrowers are strong corporates who seek to improve their bargaining power with suppliers or consolidate debts that are charged at rates in excess of 20%. Without the security of property collateral, competing products to Marketlend are corporate cards or expensive factoring solutions that are limited by high interest rates or limit to the lending amount.
Investors – Self Managed Super funds and others
With a burgeoning Australian self managed superannuation market looking for yield, it is a no brainer for these investors. Marketlend provide a stringent credit and rating process, and offer investors net returns between 10-14% dependent on the risk. A personal property security interest is created over the supplies and the business, complimented by director’s guarantees. This is fully transparent and accessible to the investor.
For the borrower the ease of an application process that takes less than 10 minutes to complete, with approval and listing within 1 hour, there are few competitors in this space.
“These are borrowers have bank facilities, and strong credit performance but seek for an alternative for their working capital that offers transparency, speed, reduced finance and administration costs. We return to the borrower the ability to bargain with its suppliers by paying them overnight, and to the investor, a strong yield that is stable and easy to collect” Leo Tyndall, Founder of Marketlend.
Five Peer to Peer Lending Predictions for 2015
Five Peer to Peer Lending Predictions for 2015 – Lend Academy http://bit.ly/1zS5ziN
Financial System Reform – Recommendation 18- facilitate crowdfunding for debt – SME finance – Marketlend well poised for the future.
Financial System Review – click for the full report
Government should continue its current process to graduate the fundraising regime to facilitate securities-based crowdfunding. This would enable entities to make public offers of securities to a potentially large number of people (the ‘crowd’). The risks associated with crowdfunding investments would require some adjustments to consumer protections, including capping individuals’ investments and clearly communicating the risks.
Government should then use the policy settings for securities as a basis to assess wider fundraising and lending regulation to ensure it facilitates other forms of crowdfunding, including peer-to-peer lending.
A range of crowdfunding models are emerging globally. Crowdfunding facilitates the funding of projects or businesses, where small amounts of money are raised from the ‘crowd’ via an online facilitator (or platform).68 Financial crowdfunding models include:
- Securities-based crowdfunding, where the ‘crowd’ invests in an issuer in exchange for securities — either equity (crowd-sourced equity funding, CSEF) or debt.69
- Peer-to-peer lending, where an online intermediary facilitates lending between individuals, often in the form of unsecured personal loans, potentially to fund a business.70
Objectives
- Graduate fundraising regulation to facilitate innovations in fundraising emerging from new technologies and ensure policy settings are consistent across funding methods.
- Provide firms, particularly small and medium-sized enterprises (SMEs), with additional funding options.
Marketlend – New Theme Picture
Marketlend new theme picture
We have also have established our new theme picture, meaning new kids shining light on a stagnant banking industry
Trust Documents executed by Trustee, Marketlend, Tyndall Capital and Jardine Lloyd Thompson
In a first for the peer to peer industry, Marketlend from inception is operating a securitisation trust structure to offer investors the most secure and protected funding opportunity available.
Master Trust Deed, Security Trust Deed, Sale and Origination Deed, and Back Up Servicer Deed were executed on 24 December 2014.
AET, a wholly owned subsidiary of IOOF, who manages approx. 123 Billion of wealth funds in Australia was appointed the Trustee, and Security Trustee.
Jardine Lloyd Thompson, listed on the UK stock exchange will perform the role of back up servicer.
“We have structured our lending platform with a solid foundation, that will be built to last. From the mom and dad investor to the large financial institutional investors, all investors are protected and purchase a secured bond where the underlying asset is a loan in the trust or part thereof if the investor wishes. These notes will have the traditional trading aspects to them, and whilst liquidity take a while to build, the notes are tradable instruments in the capital markets.” Leo Tyndall, Founder and CEO.
An interview with Marketlend CEO – Leo Tyndall
Interview with Marketlend CEO – Click here to listen
Marketlend is a new Australian lending platform founded and led by Leo Tyndall.
Launched in the same week that the Financial System Inquiry (FSI) of Australia released its “blueprint” for the Australian financial system for the next ten years, this new platform shows how innovation in financial products is global.
We were lucky enough to get a chance to speak to Leo in the week of his launch.
Leo provides us with an interesting insight as to how Marketlend is a necessary addition to the Australian business finance marketplace and what makes its offer so distinctive.
The FSI report is generally encouraging towards crowdfunding and new and novel approaches to finance and we can be sure that where Leo’s team lead others will certainly follow.
You can stream the interview from here, our Podbean account or download it for later listening
Marketlend in the Press
Banking Day article
Marketlend jostles in P2P sector
12 December 2014 7:02am
Marketlend, another P2P style lender, is making its debut in the Australian market.
Leo Tyndall, a former head of capital markets in Asia for UniCredit, is the founder and CEO. Paul Roffey, a former JP Morgan and NAB banker, is the second director.
Marketlend is a subsidiary of Tyndall Capital Pty which holds the Australian Financial Services Licence.
Business loans (especially working capital, including a line of credit linked to invoices) are the initial target product with personal loans to come.
Like others in the segment, Marketlend is not really a peer to peer lender as its investment is confined to a well-heeled few and professional investors. However, there is a bidding platform to match investments with loan requests.
Retail investors may be able to join later.
One difference in the Marketlend model is a market for secondary trading in investments in loans.
ThinCats is another recent entrant in this niche, while RateSetter and SocietyOne have more of a consumer loans focus.
Marketlend’s marketplace lending platform development awarded to peer-to-peer specialists Rebuilding Society.com Ltd.
On September 15, 2014, after three months of due diligence, Marketlend awarded Rebuilding Society.Com Limited the development and hosting of Marketlend’s advanced marketplace lending platform.
The rebuildingsociety.com platform is an enterprise class peer-to-peer/crowdfunding technology solution, which uses industry proven technology. It already powers rebuildingsociety.com and other leading peer-to-peer and crowdfunding companies.
The platform is based on a popular open source content management system, a fantastic tool for maintaining a website. It is so popular that it’s currently estimated to power around 18% of the web.
The platform incorporates a variety of advanced features that make it easy and efficient to process the transactions involved in peer-to-peer lending. This includes uploading funds to the platform, placing bids on loan auctions, completing loans, calculating interest and assigning repayments to the correct lenders.
The open source technology also means Marketlend can modify things to integrate with chosen plugins specific to client wishes and operational needs.