Summary of a post.
Lending Works announces £3 million Series A investment round
We're very pleased to announce the conclusion of our Series A investment round, which has now raised its target of £3 million. This comprises a £2m contribution from NVM Private Equity (NVM) in early June 2016, which completed the round after earlier investments from an existing institutional shareholder.
The cash injection is another significant boost for Lending Works, given that we will soon be launching our Innovative Finance ISA (IFISA), in addition to confirming new partnerships, announcing key hires and introducing new loan products as part of our ambitious growth plans - plans which have already seen us become the UK’s third-largest consumer P2P lender despite only launching in January 2014.
“We’re delighted to announce the recent investment in our business by NVM Private Equity," commented Nick Harding, our founding CEO. "They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for us too.
“We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform. Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.”
Growth and partnerships
NVM is an independently-owned private equity firm, specialising in SME investments typically between £2million to £10 million. Over the last three decades, it has invested in over 270 SMEs in the UK, and currently manages over £300 million in private equity funds.
The investment underpins the positive momentum for Lending Works, given that we launched a point-of-sale system for loans within the retail finance sector earlier this year. The expansion into retail finance is part of our strategy to focus on partnerships in order to grow the business and reach our lending target of £50 million during 2016.
“Our retail finance offering, coupled with successfully closing our Series A investment round is a show of intent on our part as we look to broaden our network with other partners," Nick added. "We see this as key to the exponential growth we are on track to achieve both in the short and medium-term, and we are looking forward to releasing some exciting new information regarding new loan products as a result of such agreements.
“Our customers come first at all times, and, as a lender, you can take great confidence from this investment round which ensures Lending Works has a robust balance sheet. You can also draw comfort from the fact that we've undergone the rigorous due diligence process that an institutional investor mandates before making an investment, hence validating our team, financials, compliance, software, systems and processes.
“Moreover, we plan to dedicate some of the capital from the latest investment round to further strengthening our team. Recruiting exceptional team members remains a key focus for us as we look to continue our journey in pioneering fair financial services that people love.”
Related articles:
- Brexit and Lending Works
- The latest on the Lending Works ISA
- Lending Works scoops treble glory at Moneywise Customer Service Awards
Get email updates for future blogs:
The 2019 ISA season is now in full swing, and it's as good a time as any to focus on financial planning - and, within that, looking ahead to your retirement years to ensure financial security.
The Lifetime ISA (LISA), announced in 2016, would prove to be one of George Osborne’s last flagship gestures to UK savers and investors as Chancellor, eventually launching against a backdrop of anti-climax a year later in April 2017.
- Summary of a post.
The issue of social care – and, more specifically, funding the cost of this care – is one which has become a major concern for our society.
Featured
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The idea of peer-to-peer (P2P) lending is a simple one; you lend money to those who wish to borrow, with a view to receiving a great return for doing so.
The peer-to-peer (P2P) lending industry is now regulated by the Financial Conduct Authority (FCA). The regulatory framework has been designed to protect customers and promote effective competition.
Loan underwriting is the process that we undertake to analyse all of the information provided by each loan applicant and their credit file to assess whether or not that applicant meets our minimum loan criteria. As part of that process all data is verified, analysed and summarised to paint a picture of each applicant.
When you earn interest from a regular bank savings account, for example, the bank automatically deducts basic rate tax (currently 20%) before paying your interest. With interest earned from peer-to-peer lending, tax is not deducted automatically so lenders will need to declare their income to HMRC.
Most popular
On 13th January, the open banking era completed its first year in existence, so it represents a natural juncture to reflect upon the past 12 months
Perhaps the word 'fanfare' would be overstating the recent response to an uptick in UK savings rates.
As 2019 moves into full swing, a big priority for every household should be to get their finances into the best possible shape.
Clearly there is one story which is dominating the headlines at the moment: Brexit.
As 2018 draws to a close, with our bellies full of Christmas turkey, it's only natural to look back on the past 12 months and reflect. No doubt, it's been a turbulent one economically and politically, and not everyone has had it all their own way.
