Today Growth Street, an alternative business finance platform, announces that more than 600 investors have now chosen to back fast growing, profitable SMEs, since it launched in late 2016.
The strength of the borrower portfolio, along with the innovative risk management approach, has led independent P2P rating service 4thWay to rank Growth Street as one of the lowest risk platforms in the market for individual investors seeking to lend directly to borrowers.
The milestone comes after a strong year for Growth Street in 2016, after it was given Appointed Representative status by the Financial Conduct Authority (FCA).
Greg Carter, CEO of Growth Street, commented: “Our borrowers successfully navigated an uncertain economic landscape in 2016, averaging annual revenue growth of over 24% while maintaining strong profit margins of 10%. The capital from our investors can help them continue this impressive track record in the coming year.”
Growth Street provides flexible working capital finance to British businesses, funded by a diverse mix of individual and institutional investors. All investors participate equally in a single dynamic marketplace that matches borrowers and lenders for 30 days. Due to the short loan length, investors can withdraw funds at 30 days’ notice. To minimise cash drag, investors typically choose to re-invest their funds automatically.
Growth Street separately provisions for losses with the aim to reduce the impact of borrower defaults on lenders and to diversify an investor’s credit risk across the whole portfolio. These measures have helped ensure that no lender has incurred any losses as of the time of writing.