was launched in 2010 and has been successful in
attracting a number of high worth lenders and companies
looking to borrow £50,000 or above.
Unique selling point
ThinCats targets only secured lending, so the
estimated bad debt rate is lower than other peer-to-business
providers. Defaults should be recoverable
against the asset, although this can take some time
to be resolved. In addition you are able to
lend money on ThinCats through a self invested personal
pension with tax advantages or via an investment
ThinCats is competing with Funding Circle in
the peer-to-business arena and currently has a 11%
and growing share of this market. It would
also be competing against high street banks and
loan size of £1000 puts ThinCats out of the
range of most lenders, as allowing for 2%
diversification lenders on ThinCats should
be investing at least £50k.
In summary ThinCats has provided lenders with
high returns and companies with the capital they
need to operate and expand their businesses.
Only lenders with considerable funds are able to
use ThinCats due to the £1000 per loan minimum, but for those that can afford
this, ThinCats is an excellent lending opportunity.
Bad debt warning - bad debt can take months
to years to materialise, and therefore the actual
bad debt figure may not be fully representative,
especially when a company's loan book is growing
at a significant rate (for example for the first
two years Zopa bad debt was 0.05%)
ThinCats review written
Ian Gurney, last updated on 14th