P2P lender Folk2Folk gains full FCA authorisation
A UK-based peer-to-peer (P2P) lending platform, Folk2Folk, has received full authorisation from Financial Conduct Authority (FCA).
Folk2Folk says it is the largest P2P lending platform to be authorised by the UK regulator so far. The company was set up in 2013 and have lent over £125 million to date, matching business borrowers to lenders secured on property.
Earlier this month, another local P2P lender, LandlordInvest, received its full authorisation from FCA.
It is understood a number of other P2P lenders – including “the big three”, according to Folk2Folk – are waiting for their green light from FCA.
Folk2Folk will be able to offer the innovative finance individual savings account (IFISA) to customers, subject to the HM Revenue and Customs approval.
Jane Dumeresque, Folk2Folk CEO, says this decision is “significant” as it makes the lender eligible to offer IFISA before the end of this tax year.
“I think it speaks volumes about Folk2Folk as a business having gained its full FCA authorisation ahead of many of the industry’s leading and larger platforms,” she states.
As mentioned above, Folk2Folk specialises in local secured lending for businesses. Interest costs to the borrower (before fees) and investment returns to the investor are 5.5-6.5% based on the LTV of the property, which acts as a security against the loan, and other criteria. Minimum investment is £25,000 and there is no maximum limit.