By Lisa Walls-Hester on 6th June 2016
WiseAlpha, a new online lending marketplace that enables investors to lend to larger British businesses than existing peer-to-peer lending platforms, has just raised £594,000 from the crowd.
The platform claims it is the world’s first online marketplace for secured corporate loans allowing people to invest in established brand name UK companies from £100.
WiseAlpha believes its attractive rates of interest, combined with its focus on large, established companies will be the key to its growth as it embarks on revolutionising the investment landscape.
The platform promises interest rates of between 5-8 percent and investors can choose from a selection of corporate loan based investments in UK blue-chip companies. Current issuers on the wiseAlpha platform include United Biscuits, RAC, Virgin Media and Eddie Stobart.
WiseAlpha founder and CEO Rezaah Ahmad comments:
“We believe that lending to some of the largest and most established companies in Britain is an attractive proposition for the discerning investor looking at diversifying their portfolio and doing something more interesting with their savings. Our investors value the peace of mind that comes with lending to large and often long-established brand name companies versus lending via other marketplace lenders offering loan investments in small businesses or others offering more opaque and risky types of loans.
“We used crowdfunding to raise funds because we believe it is one of the most important financial innovations in recent years and, as another fintech company shaking up the large global corporate lending markets, we want to build a community of investors who are interested in being part of our journey as we aim to democratize access to some of the best investment opportunities.”
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.