Marketplace lender RateSetter announced today it will now start providing loans to businesses, to act as an alternative lender to banks.
“We are not trying to fill the void in short-term funding that a number of other fintech companies are tackling, but instead taking the banks on directly in their core market of longer-term secured and unsecured business loans,” said Daniel Foggo, RateSetter’s CEO.
“Businesses in Australia will now have more options when it comes to financing their growth, and everyday Australian investors will now be able to contribute to that growth,” said Mr Foggo.
“[Businesses] need funds to increase productivity, grow and create jobs, yet traditional lenders’ inflexible approach leaves many businesses unable to get funding on fair terms.”
The loans on offer range from $35,000 to $150,000 for terms from six months to five years.
For loans from $35,000 down to $2,001, businesses must apply for a personal loan instead.
RateSetter launched in 2014 to the public, and surpassed 3,000 lenders on its books at the start of May this year. Between late 2014 and 31 March 2016, the company loaned over $32 million.
The lender aims to provide transparency in its operations, with its loan book made public via its website so that borrowers and investors alike can see where it is sourcing and lending funds, and the rates these loans are attracting.