1pm has entered into a cooperation agreement with ‘AS Mintos Marketplace’ (“Mintos”) to be a loan originator on its online marketplace for loans.
Mintos is a global online marketplace for loans where retail investors can participate in different types of loans originated by non-bank loan providers.
Through Mintos, 1pm will gain the benefits of the p2p lending model in financing loans that have traditionally been funded on its own balance sheet.
1pm is the first loan originator from the UK to access the Mintos marketplace and joins approximately 30 other loan originators globally.
The lessor said it would gain access to Mintos’ fintech capabilities to reach approximately 50,000 registered retail investors.
The leverage created by the Mintos funding source will allow 1pm to increase the number of loans written through its loans division without taking on the significant additional risk of default.
Up to 90% of each loan originated and made available on the Mintos marketplace will be assigned to investors on a non-recourse basis. All business loans assigned by 1pm will be in sterling. The cooperation agreement starts with an initial six-month trial period.
Ian Smith, chief executive at 1pm, said: “An important part of our strategic growth plan is to harness the benefits of financial technology. By joining the Mintos marketplace, we will now be able to accelerate our loans business origination without increasing risk and to access retail investors globally and efficiently, a funding source that would be unavailable to us without this digital capability”.