Business lending platform ArchOver joins the ranks of the fully authorised.
ArchOver, the secured and insured peer-to-peer lending firm, has been granted full authorisation by the regulator.
The firm is now free to look ahead to the launch of its Innovative Finance ISA, for which it will require approval from HMRC.
ArchOver facilitates loans against the accounts receivable and/or contracted revenues of business borrowers, and is partnered with credit insurance firm Coface to offer a layer of insurance coverage to investors.
The firm has lent over £35m to date, according to AltFi Data, and claims to have delivered a historic return of 7.24 per cent to investors. Its target is to facilitate £500m of lending within the next five years.
ArchOver is backed by insurance firm Hampden Group, which is both an equity investor in the platform and its single biggest lender.
ArchOver joins Funding Circle in celebrating its authorisation this morning. Funding Circle is the second of the UK’s “big three” peer-to-peer platforms to be authorised, having been narrowly beaten to the milestone by Zopa. RateSetter continues to operate under interim permissions.
“There is great satisfaction in gaining a stamp of approval. Our industry leading policies and procedures will allow us to take alternative forms of lending to the next level,” said Angus Dent, CEO at ArchOver. “At a time when investors are experiencing low interest rates and banks are tightening the purse-strings, P2P lending offers a unique and much needed service. Incorporating the most successful elements of P2P lending into the regulations and strategy of the FCA is critical to raising awareness and protecting the long-term success of the industry.”