Industry Peer-to-peer lending Website www.lendingworks.co.uk Founded 2012 | Products Financial Services Headquarters London Type of business Private | |
Founder Nick Harding & Matt Powell | ||
Lending Works is a peer-to-peer lending platform based in London, UK. Lending Works was the first peer-to-peer lending platform that has insurance to protect its lenders against borrower default, using the "Lending Works Shield".
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Lending works peer to peer lending low cost personal loans
History
Lending Works was founded in 2012 by Nicholas Harding, who has a background in banking, and Matthew Powell, who is an accountant who previously worked at Ernst & Young. The Non-Executive Chairman, Richard Priestman, is an accountant and was previously a board director of the Finance and Leasing Association and Managing Director of Corporate Businesses at Lombard Asset Finance. Lending Works has raised £3.5m from investors.
The company officially launched on 12 January 2014, and facilitated more than £5million in loans during its first year. Subsequent investment from industry giant P2P Global Investments and an expansion within the company then contributed to threefold growth in 2015, and by the end of 2016, more than £40 million had been lent through the platform.
Lenders
Lending Works enables lenders to lend directly to personal loan borrowers. Facilities that it offers to lenders include "quick withdraw", where lenders can exit their loan agreements early, "auto lend", where loan repayments are automatically lent out again, and "auto income", whereby lenders can take repayments from borrowers (either interest, or capital and interest) as an income paid directly to their bank account. Lenders are also protected by the "Lending Works Shield" which insures against borrower defaults, fraud and cybercrime.
The company received confirmation of full FCA authorisation in October 2016, and having subsequently gained ISA Manager approval from HM Revenue and Customs, it now expects to offer the new Innovative Finance ISA to its lenders in Q1 2017.
Borrowers
Lending Works personal loans allow borrowers to repay their loans early with no penalty, and make overpayments on their loans.
Lending Works Shield
Lenders are protected by the "Lending Works Shield", which includes:
Financial Conduct Authority
Lending Works is authorised and regulated by the Financial Conduct Authority (FCA) under the crowd funding regulation. Lending Works has a consumer credit licence which is granted under the Consumer Credit Act 1974.
CIFAS
Lending Works is a member of CIFAS, a UK fraud prevention agency.
P2P Finance Association (P2PFA)
As a member of the P2PFA, Lending Works is required to meet a set of rules and operating principles for the transparent, fair and orderly operation of P2P lending.