Welendus, the new payday peer-to-peer lender with an ambition to shake up the short-term lending market, has launched an equity crowdfunding round on Seedrs.
The company is seeking £300,000 for eight per cent equity. The new capital will be used for new hires, marketing, technology and initial funding for a guarantee account.
The company has so far funded over £62,000.
Welendus plans to launch its platform in the first quarter of 2017 and says it will help people with short-term financial needs borrow directly from other people at a much cheaper rate with no hidden costs or charges.
It will offer short-term, unsecured consumer loans. Borrowers will get flexible terms with no penalty fees. Loans will range from £50 to £500, with a maturity of one to three months. The firm's most obvious competition comes in the form of The Money Platform, which recently launched with a not dissimilar model.
Investors will be able to lend a minimum of £10 through the site and expect returns of up to 15 per cent.
Details of the raise can be found here.
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.