RateSetter stops accepting new unsecured business loan applications

RateSetter has announced that, as of yesterday (22nd January), it has stopped accepting new unsecured business loan applications.

Following a review of its commercial finance proposition, the P2P lending platform will now focus solely on property-backed and asset-backed lending.

RateSetter’s commercial finance offering now consists of:

  • Property backed:
    – development loans
    – investment loans
  • Asset backed:
    – business hire purchase

RateSetter said it would continue to maintain a diversified approach to lending across consumer, business and motor finance markets, however, the commercial finance offer will no longer include unsecured business finance.

The platform will process all existing unsecured business loan applications and approvals, and said its unsecured business finance lending was performing in line with expectations.

It also reassured investors that active unsecured business loans would continue to repay in line with their schedule.

“By simplifying our commercial finance product offering and focusing our resources on lending secured on property and other tangible assets, we have a clear framework around which to grow our commercial finance volumes and continue to deliver access to healthy returns to investors,” said Rhydian Lewis, CEO of RateSetter (pictured above).

RateSetter added that there was no material impact from this decision on investors, who would continue to enjoy access to returns from a diversified pool of borrowers, all with provision fund protection.

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