P2P lender streamlines credit assessment process

P2P lender streamlines credit assessment process
Australian Broker 22 June 2016, Julia Corderoy

Peer-to-peer business lending platform, ThinCats Australia, has streamlined the assessment process with the launch of a new credit assessment tool.

Created by local company Othera, the credit assessment tool allows small companies to pre-qualify for loans on the ThinCats platform, as well as allowing its 300 peer-to-peer lenders make more informed business lending decisions.

According to John Pellew, CEO and founder of Othera, the typical pre-qualification process takes lenders anywhere from two to four hours.

“What makes Othera’s credit assessment tool unique and invaluable to lenders and borrowers is that the complex pre-qualification process has been automated with credit decisioning algorithms yet borrowers require no financial expertise to begin the online process.”

Using the platform will take less than five minutes to fill in the online form to pre-qualify for loans, with no requirements to upload documents, Pellew said. The Credit Assessment report is delivered to the lender within minutes.

The CEO of ThinCats Australia, Sunil Aranha, said the P2P platform is targeting $20 million in loans to businesses this year and the tool should accelerate its growth through a better matching process.

“The tool will attract more lenders to our platform as it improves the quality of information they base their lending decisions upon. This will make the process of lending more efficient on both sides of the transaction, which is a significant boost to small businesses in Australia,” he said.

ThinCats’ lenders will also benefit by being able to assess a borrower’s credit quality in a shorter time through Othera’s ability to directly access the potential borrower’s accounts, according to Pellew.

“Rather than relying on official credit rating reports and previous financial year’s tax returns which use historical data, lenders now have access to a Credit Assessment report that is generated from real-time accounting data,” he said.

ThinCats has funded 24 loans worth more than $3.1 million to date, at interest rates ranging from 11.5% to 15%.

ThinCats receives funding boost

ThinCats receives funding boost
Mortgage Business, 20 June 2016, Huntley Mitchell

Peer-to-peer (P2P) lender ThinCats Australia has received a significant funding commitment as it continues to grow its presence in the business lending sector.

The platform’s UK partner, ESF Capital, has agreed to provide it with $30 million in funding for small business loans over the next two years.

In just its second year of trading, ThinCats CEO Sunil Aranha said the company is targeting $20 million in loans to businesses, with a projected $100 million to be lent next year.

“We are now seeking business people who are not interested in putting their homes on the line to fund their enterprises, as most often required by the major banks,” he said.

Mr Aranha said there is a real opportunity for P2P lending in Australia due to APRA’s pressure on the major lenders and their traditional aversion to unsecured loans, “as well as [their] inability to price small business risk accurately”.

“Many banks in Australia really operate more like building societies, as they are demanding property as security, instead of backing their judgement in supporting their small business customers on the basis of their current and future trading performance,” he said.

ThinCats has funded 24 loans worth more than $3.1 million to date, at interest rates ranging from 11.5 per cent to 15 per cent.

This peer-to-peer lender is offering Shark Tank rejects an alternative path to funding

This peer-to-peer lender is offering Shark Tank rejects an alternative path to funding
Australian Anthill – 7 June 2016

Peer-to-peer business lending platform for SMB, ThinCats Australia, is offering hope to those who did not make the cut on the Shark Tank program on the Ten Network.
ThinCats Australia has provided 23 loans in just over a year of operations and CEO, Sunil Aranha, is happy to use his platform to arrange loans from $50,000 to $2 million for budding entrepreneurs with currently cash flow positive businesses.
“We are providing loans for the budding entrepreneurs at a competitive interest rate of under 16 per cent, without the need for them to sell equity as required on Shark Tank,” he said
“We are targeting $20 million in loans to businesses in our second year of trading, with a projected $100 million to be lent next year. We are now seeking business people who are not interested in putting their homes on the line to fund their enterprises, as most often required by the major banks,” he added.
“There is a real opportunity for entrepreneurs who appeared on Shark Tank to use peer-to-business lending in Australia to expand their businesses and achieve their dreams.”

Bridging the gap between lenders and borrowers
The online lending platform connects wholesale investors with small and medium sized business borrowers across Australia, capturing an ‘untapped’ customer segment not well serviced by bank and non-bank financial institutions.
Lenders benefit through higher returns and diversification through fractional lending on secured loans and borrowers have access to medium and long term finance at competitive interest rates, generally between 12 per cent and 16 per cent p.a. compared with other lenders, which are charging up to 1 per cent a day for short term loans.

ThinCats has funded loans worth more than $3 million over the last year at interest rates ranging from 11.5 per cent to 15 per cent to diverse businesses, including a stone importer for the building industry, commercial solar energy systems supplier, a nutritious superfoods manufacturer, a carpet contractor and an organic coffee distributor.

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