Sourcing funding is tough within the current economic climate. Mainstream lenders are fearful of lending due to the sting they received as a result of the financial crisis of 2008. However, as the economy is picking up, with it brings an exciting time for SMEs as there are opportunities of expanding. As high street lenders are not substantially lending, SME owners are turning to alternative lenders for finance to enable their companies to grow and develop. Further to this, banks are also not providing fruitful investment options for investors. This has led to investors actively seeking non-traditional routes in order to gain increased rates of return on their funds.
Wellesley & Co is an investment alternative with a simple concept and a unique business model. We make asset backed loans with our own capital and only lend to assured borrowers. Our innovative business model sees each loan funded by shareholder capital in the first instance. Therefore, when we make loans we are not only lending customer’s cash, but also our own. This illustrates our confidence in each loan. Further to this, if a loan was to fall into default, we would be the first to lose our capital and the last to have it repaid.
Diversification is key
An additional unique feature of Wellesley & Co is that we offer the highest level of diversification possible through our Auto-Matching process. Wellesley’s Auto-Matching tool runs once a week, matching lenders to every single loan on a volume weighted basis. During the same weekly process it will re-match existing lenders allowing them to have the best diversification at that present moment in time. In turn, this allows lenders to have a continued high level of diversification as the Wellesley loan book grows.
Thorough Application Checks
In order to qualify for a loan with Wellesley each applicant has several checks undertaken before a Wellesley Loan Officer presents the application to the Wellesley Credit Committee for approval. The checks that are performed are; several credit checks, a fraud check and a range of background checks. The checks are completed though highly credible platforms such as; Equifax and Cifas. These checks are carried out to ensure Wellesley have all of the relevant and up-to-date information that is required to make a well informed application decision. These checks are detrimental to our credibility as lenders and we have a responsibility towards our investors to make sure their funds are going to only a profitable source.
At Wellesley, we understand how important it is for every investor to feel safe, although Peer-to-Peer lending is not covered by the FSCS and does carry risks, our model has been moulded to ensure that our lenders know that there is a contingency plan in place if a loan was to fall into default. This plan stems from our asset backed lending model. Asset backed lending means that if a borrower was unable to repay their loan, Wellesley could seek to sell the asset in order to recover any losses.
If you would like further information about Wellesley & Co or to discuss your financing option, please contact our London based Customer Service Team; [email protected] / 0800 888 6001