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|Peer to Peer industry insight - Friends and family lending market is worth over £2.9bn annually|
|Friday, 02 December 2016|
In a service set to revolutionise the peer-to-peer lending industry, Flender has launched a crowdfunding campaign for a new platform that enables users to borrow and lend money in both the traditional peer-to-peer market but uniquely also with their own social networks.
The revolutionary platform has been in development for two years and will provide a framework for the social lending industry – loans between friends & family – which a new survey estimates to be worth over £2.9 billion* a year. The service will enable people to engage in peer-to-peer lending with their social and business connections meaning that rather than engaging with a bank or loan company, there is an added element of trust from personal connections.
Uniquely, it will also allow businesses to raise finance through their existing customers, increasing loyalty and improving their offering to the same customers.
The crowdfunding campaign, launching on the Seedrs platform on 21st November, is aiming to raise £500,000 in exchange for 10% equity in Flender.
New independent research performed on behalf of Flender indicates that nearly a quarter of people (23%) have confessed to falling out with people over lending money issues and that 44% had lent or borrowed money to or from a family member of friend in the past year, indicating a real need for an platform such as Flender which comes with a regulated framework to which users agree.
Commenting on the launch of the campaign, Kristjan Koik, Managing Director of Flender said: "The social lending market among friends, family and business connections has never been formalised, which is crazy when you consider that this is a market worth just under £3 billion a year.
Asking people you know for money – and lending to them – is awkward and is certainly an unreliable means of finance. Whether it’s to grow your business, fund further study, or to fund home improvements, Flender will let you borrow from and lend reliably and easily via any device.
For individuals, there is satisfaction of helping others while earning more interest than a standard savings account while businesses can have access to funds faster and at their preferred rate. Everyone wins.”
Oli Cavanagh, Founder and Sales Director of Flender adds, “Using Flender is extremely user friendly, and it has been built with a mobile-first approach - which is new in peer to peer lending - where all contracts are generated and digitally signed on the phone. There’s no paperwork, and monthly payments at the preferred interest rate are all automated, meaning you never have to ask for your money back.
Importantly Flender is also the first to bring in social connections in order to add a new element of trust and additional way of credit scoring in peer to peer finance.”
We believe Flender will change the way people borrow and lend, and we are inviting investors to join this exciting journey on Seedrs.com from Monday 21 November.”
The Flender leadership team consists of Kristjan Koik as Managing Director, Oli Cavanagh as Sales Director, Jeremy Davies-Betancourt, Finance Director and Frank Friel as Technical Director who have a wealth of experience in marketing, finance and technology. They are aiming to raise £500,000 from investors via Seedrs in order to launch the platform. Flender is part of the FCA’s Consumer Credit Register and is a regulated and trusted platform in which to exchange funds.
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