Credit, collections & insolvency news
Peer to peer lender ThinCats has launched a new two-tiered grading system for all loans on the platform’s primary market. The new system will allow investors to quickly determine two key factors that determine the quality of a loan: credit quality and security quality.
Credit quality, the ability of a company to service its loan obligations, will be represented by a one-to-five-star grading. Security quality, the value of the underlying assets relative to the size of loan, will be represented by a one-to-five-padlock grading.
John Mould, Chief Executive of ThinCats, said: “As peer to peer rapidly becomes a mainstream investment proposition, it’s even more vital that investors are armed to make sound decisions about the credit-worthiness of the businesses they choose to lend to. We’ve invested heavily in this part of the business, and will continue to introduce developments that improve service, and make peer to peer lending a reliable and rewarding mainstay for investors.”
“Investor demand is driving the market toward even greater transparency and ease of use for the end user, and this grading system is an important piece of that puzzle. I’m confident that our method is among the most robust and reliable approaches to doing so.