Massow launches peer-to-peer lending venture
Former IFA Ivan Massow has joined the peer-to-peer lending market with launch of Massows Angels.
Former IFA Ivan Massow has launched Massows Angels, which aims to provide small- and medium-sized businesses with acess to lower interest rate funding while giving lenders a better return on their money.
In an interview with FTAdviser in December, Mr Massow said the peer-to-peer lending launch capitalises on “opportunities” in the market, which is designed to help businesses looking for funding.
Massows Angels will operate on a Dutch auction model, which encourages lenders to bid the lowest rate they are happy to take because lower bids are automatically uplifted to one overall accepted rate.
Borrowers are charged an annual completion fee equal to 1.2 per cent of the loan amount, while lenders pay no fee at all.
The new venture is in collaboration with online marketplace YouAngel.
Massows Angels complements Ivan Massow’s financial services business, PayMeMy, which provoked controversy when it launched in September 2011.
The company traces the ‘trail commission’ charged by IFAs on millions of policies across the country and “puts the money back into the hands of consumers”. In less than six months, it has helped more than 10,000 clients, according to the firm.
Mr Massow said: “I’m thrilled to team up with YouAngel. Like me, its founders truly believe in standing up for the underdogs – in this case, ordinary savers at one end getting zero returns on their investments and vibrant young businesses held to ransom by the big banks.
“I look forward to helping both sides fight back.”