Credit, collections & insolvency news
RateSetter has collected back in £1billon in capital repayments from borrowers since the platform wrote its first loan in 2010. n total, RateSetter investors have lent almost £1.75 billion to individuals and businesses across the UK, including £668 million in 2016 alone. Alongside the £1 billion capital that has been repaid, RateSetter investors have earned £63m in interest at average interest rates of between 3.1 per cent on the Rolling market and 6.0 per cent for the 5 Year market.
RateSetter’s Provision Fund, which reimburses investors when a borrower missed a repayment, has ensured that, to date, every investor has received the rate that he or she expected, although this is not a guarantee for the future and capital is at risk.
Rhydian Lewis, RateSetter CEO and co-founder, said “While it’s easy to focus on lending volumes, what matters in the long term is that platforms demonstrate that they’re lending to good borrowers who pay back, which is why we’re so proud of this milestone. To have collected £1bn back in is a good indicator of the quality of our lending.”
