P2P Platform Crowdstacker offers exposure to UK property sector
Peer to peer lending platform Crowdstacker is launching an opportunity to lend to Amicus Finance (Amicus), offering investors 5.67 per cent annual interest over a term of just 18 months.
The borrower, Amicus, is a leading specialist lender with a strong presence in the short term property lending sector providing solutions for commercial and private borrowers.
The 5.67 per cent interest rate on the Amicus loan is available to ‘early bird’ investors before 6 November. After this date, the interest rate will be 5.43 per cent. Interest is paid quarterly to meet demand for income from investors.
The minimum investment is GBP1,000 and the offer closes on 11 December.
According to Amicus, demand for short term property lending has grown from around GBP1.4billion in 2013 to an estimated GBP3billion annually today. Many traditional banks have withdrawn from the short term lending sector to focus on standardised long term loans, enabling specialist alternative firms such as Amicus to rapidly grow their market share by offering high quality borrowers a faster and more efficient service.
Amicus’s property loan portfolio is currently made up of 90 per cent residential properties and 10 per cent commercial properties, with 70 per cent located in London or the South East. Its loans are repaid, on average, in 8.5 months and it typically lends between GBP50,000 and GBP5 million. It won Bridging Lender of the Year at the Bridging and Commercial Awards, and has lent more than GBP500million in 800 loans over the past six years.
Crowdstacker positions itself differently to other P2P firms owing to the comprehensive due diligence process borrowers must undergo before being accepted onto its platform.
Amicus went through several stages of quantitative and qualitative assessment undertaken by Crowdstacker’s team of experienced professionals from the accountancy, legal and investment sectors.
Amicus is only the third loan opportunity offered by Crowdstacker since its launch earlier in 2015. Crowdstacker has ruled out more than 30 other potential firms because they did not meet its strict lending criteria.
Karteek Patel, CEO of Crowdstacker, says: “We start our due diligence process where other platforms stop. We offer the innovation, speed and flexibility of peer to peer lending, but combined with a highly selective approach to the borrowers we accept on our platform, and underpinned by the robust due-diligence practices one would expect from a major accountancy firm.
“Most of our customers are looking to diversify their investments, but they are also quite cautious and only want to lend to financially solid businesses. Amicus has a top level management team, exposure to a very strong market, and has only lost 0.15 per cent of capital on its loans over 6 years. We think that makes Amicus an extremely attractive opportunity for those looking to earn a market-beating return over the next 18 months.”
Amicus CEO John Jenkins, says: “By lending to Amicus, investors are provided with an exciting opportunity to receive a market beating return by sharing in our success in the fast growing short term property lending market. As our loans are secured against property in the same way as a mortgage, and we take personal guarantees from directors, we have an extremely low default rate and therefore can offer investors a high degree of security.”