65. Lending Works
The peer-to-peer marketplace making lending simple and safe for everyone
Founder: Nicholas Harding and Matthew Powell
Founded: November 2012 (launched January 2014)
Post-recession and things were (and arguably remain) dormant in the traditional funding world; but with a growing economy, innovative tech and more people looking for unconventional financial routes, start-ups began to launch in order to fill the gaps left by the banks and the alternative funding market exploded.
Capitalising on this growing demand for alternative finance, peer-to-peer lending start-up Lending Works connects “shrewd lenders with creditworthy personal loan borrowers”. By cutting out the middleman, lenders can receive great returns while borrowers secure low-cost loans – with no hidden fees. A key differentiator to other similar products on the market, Lending Works also offers its pioneering ‘Lending Works Shield’ which protects lenders against key risks including fraud, borrower defaults and cybercrime.
Having raised £4m in funding from an impressive group of funders, which includes industry experts David Kyte, founder of the Kyte Group and London International Financial Futures and Options Exchange (LIFFE), and Meridian Equity’s co-founder Max Ashton, the start-up also boasts solid financials – with revenue set to reach £1.4m in 2015.
With a network of almost 50,000 members and 3,000 active customers, Lending Works predicts a growth rate of “over five-fold” in the next year as the business evolves into a three-dimensional company with a broad range of distribution channels.