Insurance group lists record-breaking loan on ThinCats

Europe’s biggest platform for secured P2P business loans has auctioned Europe’s – and possibly the world’s – largest non-property peer-to-peer (P2P) loan.

Insurance group LAMP has listed a £3.5m loan on UK-based lending platform ThinCats. Founded in 2005 and with net assets of £24.5m, LAMP is one of the largest businesses to seek P2P funding.

The loan is over three years, with an interest repayment of 9% pa. It is underwritten by ESF Capital.

John Mould, CEO of ThinCats, commented: “LAMP is a well-established business with a significant market presence. This shows that P2P lending in general – and ThinCats in particular – is beginning to vie with traditional lenders as a mainstream provider of capital to increasingly large companies.

“We expect to see an upward trend in both the size and variety of deals as more businesses discover the benefits of financing through P2P lending.”

The deal was brought to the platform by ThinCats Sponsor, Capital Engine.

Christopher Rothschild of Capital Engine, said: “This transaction shows that ThinCats is maturing into a marketplace where established businesses can raise structured term debt on attractive terms. We are keen to identify more good borrowers and make further inroads in the underserved SME loan market by structuring loans which enable them to achieve their aims while also offering good yield investments to lenders.”

The loan will be used to refinance existing debt facilities, and is secured against the assets and cashflows of the business.