The company will discontinue its unsecured business lending operations.
More change at peer-to-peer lending platform RateSetter, which as of today will no longer accept unsecured business loan applications.
Henceforth, RateSetter's commercial lending activities will focus exclusively on property and asset backed loans. The company says that it will maintain its diversified approach, which entails making loans across consumer, business and motor finance markets, but that its commercial finance offering will now be limited to property-backed development and investment loans, and asset-backed business hire purchase.
“By simplifying our commercial finance product offering and focusing our resources on lending secured on property and other tangible assets, we have a clear framework around which to grow our commercial finance volumes and continue to deliver access to healthy returns to investors,” said Rhydian Lewis, founder and CEO of RateSetter.
The platform does not anticipate any material impact for its investors, and stresses that its unsecured business loans are performing in line with expectations. Outstanding unsecured business loans will continue to repay in line with their schedule.
This narrowing of focus is somewhat reminiscent of Funding Circle’s decision, made in April 2017, to wind down its property lending activities. Like Funding Circle, which elected to refocus its resources on its primary small business lending activities, RateSetter is trying to stick to what it feels it knows best.