RateSetter Australia passes $50 million in record time
This month RateSetter achieved an important milestone – passing $50 million in funds matched between investors and creditworthy borrowers. This milestone was reached in record time for an Australian peer-to-peer lending platform.
RateSetter Australia CEO, Daniel Foggo, commented: “From the start our objective has been to give Australian investors and borrowers a better, fairer deal.
Our growth since launch shows the enthasiam with which Australians are embracing an alternative that offers them better value and real convenience compared with traditional financial institutions.
“Combined with the success of RateSetter in the United Kingdom, this record-breaking growth makes the RateSetter group one of the largest and fastest growing online retail money markets in the world.”
Significantly, every amount of money lent on our platform has come from everyday Australians, not from any banks or wholesale investors participating on preferred terms. A growing community of over 3,800 everyday Australians now joined our platform, representing a broad range of retail investors from younger investors using RateSetter to help build a deposit for a house, through to established self-managed superannuation fund investors seeking attractive, stable returns to help fund their retirement. Collectively, RateSetter lenders have funded over 3,000 loans to borrowers across Australia, and have earned over $1.7 million in interest.
Funds have been lent to creditworthy individuals and businesses who have borrowed to buy new cars, pay down expensive bank debt or obtain funds to help grow their business at rates significantly lower than that offered by traditional lenders. All told, we estimate that RateSetter borrowers have saved over $500,000 in interest, compared to what they might have paid had they borrowed from a traditional bank.
Even with such rapid growth, we have maintained an exceptional credit track record, with actual bad debts representing less than 0.17% of loans funded. In addition, our Provision Fund has ensured that every lender has received every cent of principal and interest due, without interruption or delay. The Provision Fund now stands at over $2.2 million, substantially more than expected defaults.
So, our thanks to you – our investors and borrowers – for helping us to reach this milestone. We look forward to sharing our future growth and successes with you.