Member Article

P2P lender Lending Works receives seven-figure funding to grow loan channels

Lending Works, the peer-to-peer lender, has received £2m in growth funding from Newcastle-based NVM Private Equity as it continues on its growth trajectory.

The Farringdon-based firm will use the funding to build additional loan distribution channels, grow its team and invest in its platform as it looks to capitalise on the rapidly growing P2P lending market, which is predicted to grow to around £4.3bn this year.

Founded in 2012 by Chief Exec Nick Harding, the FinTech business provides consumers with a safe and secure P2P lending service which, it claims, provides better returns for lenders than banks and offers borrowers cheaper funding.

Commenting on the investment Nick said: “We’re delighted to announce the recent investment in our business by NVM Private Equity.

“They bring significant experience in key areas including business scalability, risk and business development and we consider their backing to be a ringing endorsement of our rapid progress as a company. This latest investment comes at an exciting time for Lending Works.”

The P2P lending market is poised for explosive growth following the introduction of the Innovative Finance ISA, which provides tax-free interest to P2P lenders, and new FCA P2P legislation which are establishing P2P as an increasingly mainstream form of lending.

With these developments in mind, Nick added: “We’re expecting to launch our new IFISA imminently, which will allow lenders to earn tax-free returns through our platform.

“Needless to say, it sets the foundations for continued growth which will be well supplemented - and driven - by this new investment.”

Charlie Pidgeon of NVM Private Equity was similarly hopeful about the imminent mainstream adoption of P2P lending and commented: “ We believe the P2P market has significant growth ahead and through the partnerships the company has built over the last 12 months the business will be able to scale rapidly post investment.

“We are excited to be an investor at this point of the company’s development and look forward to supporting Nick and the team in the next phase of growth.”