The Money Platform has identified a gap in the short-term loan market, traditionally serviced by banks and payday lenders. Its proposition is to provide loans with lower interest rates to creditworthy individuals in employment with the ability to pay back the loan in full within three months; and to give lenders access to a whole new market.

During development the company was placed into the FCA’s Project Innovate incubator programme, which led to achieving the FCA’s full consumer credit permissions and making it the only authorised short-term P2P lender in the UK.

The short-term loan market continues to witness strong customer demand with further growth projected in the coming years. However, new FCA regulations which place further restrictions on lenders, have seen a large number of direct short term lenders exit the market.

The Money Platform is able to offer more competitive interest rates than existing short term lenders through using its market-leading credit decision engine and by only approving loans to people with a strong credit rating. The maximum loan at launch is £1,000, with an interest rate ranging from .3% to .7% per day. With an Representative APR of 165% the average Money Platform loan is frequently less expensive than unplanned bank overdrafts and other short term credit providers.

The P2P concept is simple:

For Investors:

• Investors can lend money to borrowers, and have the ability to set the rate (between 0.3% and 0.7% interest per day), the term and the loan amount.
• When borrowers repay their loan, investors receive their principal + 65% of the interest payable by the loan’s borrower. The other 35% is the TMP loan administration fee.
• All borrowers are fully vetted, and The Money Platform’s bespoke credit model ensures that money is only lent to those who can afford it.
• Allows lenders to have access to rates previously reserved for the credit card companies and the high street short term lenders.

For Borrowers:

• Borrowers need to be in full-time employment, have a strong credit rating and meet stringent affordability criteria
• Borrowing periods are from 3 weeks to 12 weeks.
• Interest rates range from 0.3% to 0.7% per day.
• Prudent underwriting means borrowers only receive loans they can afford to repay.

Charles Balcombe, co-founder of The Money Platform, said, “Historically the short term loan market has been viewed as ‘morally bankrupt’ – and with good reason. With two years in planning, we are finally delighted to present British consumers with an affordable short term loan option and to shake up this industry through transparency and ethical practices.”