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.