The UK-based specialist SME finance provider has gained access to the Mintos marketplace and joins around 30 other loan originators from around the world.

The marketplace allows retail investors to participate in many different types of loans originated by non-bank loan providers and through Mintos, 1pm hopes to benefit from the P2P lending model in financing loans that have traditionally been funded on its own balance sheet.

1pm will be able to reach around 50,000 retail investors from around the world, creating a new funding channel.

•   SME lender expects 75% increase in pre-tax profit
•   1pm posts 17% increase in profit before tax
•   Leeds City Council to lend through peer-to-business platform

The new funding source will allow the lender to increase the number of loans written through its loan division without taking on significant additional risk.

Up to 90% of each loan originated and made available on the Mintos marketplace will be assigned to investors on a non-recourse basis.

The cooperation agreement starts with an initial six-month trial period and all business loans assigned by 1pm will be in sterling.

Ian Smith, CEO at 1pm (pictured above), said an important part of its growth plan was to harness the benefits of financial technology.

“By joining the Mintos marketplace, we will now be able to accelerate our loans business origination without increasing risk and to access retail investors globally and efficiently, a funding source that would be unavailable to us without this digital capability.”