The new platform will become the first that uses its own money to participate in every loan agreed to with its borrowers. Wellesley & Co.’s shareholders have already committed £5 million of capital for this purpose. The hope will be that, in risking its own capital, lenders and borrowers alike will feel that the platform offers greater security than its competitors.
Commenting on the Launch, CEO Graham Wellesley said: “We are very excited to be launching our platform at a time when the sector is growing exponentially. We spotted a gap within the market which to date has not been addressed. We are bringing to the market for the first time an asset backed model where the operator is taking a stake in every loan”.
In the case of a default, Wellesley & Co. have subordinated their interests to those of independent lenders – who will always be repaid first. The platform will also boast a provision fund, which will be continually topped up with a percentage of each successful loan. The company shareholders have provided an initial £100,000 for this contingency fund.
