ArchOver, a peer-to-peer (P2P) business lending platform, is expanding its offering with the launch of an automated portfolio investment option on loans for SMEs.
The ArchOver Investment Plan has an annual target rate of up to 6.4 per cent. It will accept pledges from GBP250, improving accessibility for retail investors.
“Peer-to-peer was established to democratise finance,” says Angus Dent, CEO. “We knew there was demand from potential investors who could benefit from our model, but didn’t necessarily want to lend borrower-project-by-borrower-project, including investment houses that require a more diversified portfolio with cross-sector exposure. Institutions using the service will now be able to let ArchOver administer their portfolio for the first time.”
“We also wanted to provide a portfolio lending strategy for private investors. With the entry point at GBP250, our platform will now be accessible to an even wider group of people.”
Each Investment Plan will be spread over a minimum of ten secured investment projects on the platform, with no more than 10 per cent of the portfolio being exposed to any one Borrower. The loans will benefit from ArchOver’s full range of security measures, including controlled accounts, credit insurance (where applicable), dispute resolution and an all-assets charge with Companies House.
As a result of the spread investment, investors’ exposure to risk is low, but they still benefit from ArchOver’s high rate of return and top-quality Borrowers, making the service a strong choice for individuals and institutions alike.
The new service comes amid a period of sustained growth for ArchOver, which recently launched its IFISA and achieved over GBP80 million in total funding facilitated, as well as expanding its leadership team to support further business growth.