RATESETTER’S investors have earned more than £50m in interest since the peer-to-peer platform was launched in October 2010, earning an average rate of 4.7 per cent.
The company, which is one of the largest platforms in the market, is proud of its provision fund that means no investors have lost money to date – although this is no guarantee that the fund will be able to cover all bad debts in the future.
RateSetter has seen an increase in investor numbers since the Bank of England decided to cut interest rates in August, as consumers look elsewhere for better returns on their money.
The platform now has 45,000 registered individual investors.
“RateSetter is all about giving individual investors direct access to the risk and return from loans – ending the exclusivity that banks and funds have tightly held onto for centuries,” said Peter Behrens, RateSetter’s co-founder and chief commercial officer.
“Returning £50m without dropping a penny is a great achievement – and this number is growing by around £2.5m every month.”
Earlier this week, RateSetter unveiled a £4.9m loss for the last financial year, which it blamed on a new fee structure and investment into the business.