Loanpad

Idea

Introduction

Loanpad is a new Fintech, offering a disruptive, income-generating, lower-risk P2P model. Rapidly gaining traction, it is close to breakeven with over £22m under management and c. 2,600 investors*. It is ideally placed to take advantage of the changing P2P landscape, where investors are looking for a more reliable home for their cash. Loanpad is now crowdfunding to boost awareness and take advantage of this opportunity.

We split loans into two parts, a senior portion and a junior portion. Loanpad investors take the senior (lower-risk/rate) portion. The loan originator retains the junior (higher-risk/rate) portion.

Investor's funds are spread across all live loans and are realigned every day. This provides all investors - whether small or large, whether time-rich or time-poor, with a fully diversified portfolio of loans as soon as they invest.

Investors can invest through our Classic and/or Premium accounts (both ISA eligible). The Classic account pays 3% and allows daily withdrawals. The Premium account pays 4% and 60-days' notice is required for withdrawals.

All interest is paid out daily enabling investors to compound their returns (i.e. earn interest on their interest).

Source: Based on unaudited management accounts.

Substantial accomplishments to date

1. Build of bespoke online platform

2. Full FCA Authorisation

3. Over 2,600 investors

4. Over £22m in funds under management with over £5m in ISA accounts

5. Five established lending partners, with many others looking to join

6. 2020 growth of over 150% in loans notwithstanding Covid-19

7. 5-star Trust Pilot rating https://www.trustpilot.com/review/loanpad.com

8. No losses to date on any loans

9. No delays to date with any withdrawals

10. Within touching-distance of break-even point, estimated in Q2/Q3, 2021

Monetisation strategy

1. Share of loan interest. We charge borrowers a rate of interest on all loans made. This interest is split between our investors and Loanpad. Our revenue is to date entirely generated by our share of interest received on a daily basis in the same way as our investors. This ensures stability of the business as our income is received regardless of the level of new loans written in any period.

2. Fees. To date, we have not charged fees on loans as we consider it to be better to remain uber-attractive to lending partners at this early stage of growth. In due course, we intend to charge small fees on loans and this will present a considerable boost to income.

3. Software licensing. Although not in the near-term, we intend to license our bespoke software to non-competing companies.

4. International expansion: In the medium-term, we plan on expanding our model internationally.

Use of proceeds

The proceeds raised will be used to support/accelerate the ongoing growth of the business including:

1. Marketing activity to raise awareness and substantially increase the funds under management.

2. Software development to a) enable new features and account-types b) licensing to third-parties.

3. Increase the size of our Interest Cover Fund.

4. General working capital.