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New Loan Scheme Cuts Out Banking 'Fat Cats' in Coventry and Warwickshire

Strategic Insights

— 1 min read

The Business Loan Network has been launched in Coventry and Warwickshire, providing local companies with a lower-cost alternative to borrowing from high street banks. The online auction process at www.thincats.com provides pre-vetted and secured business lending opportunities to experienced investors, offering returns of between 7% and 12% per annum. This new scheme aims to cut out the "fat cats" by allowing lenders to bid on loans directly, earning them a predictable monthly income. Coventry and Warwickshire companies can borrow between £50,000 and £3 million, with lenders able to bid as little as £1,000.

Key Takeaways:

  • The Business Loan Network is a new loan network aiming to cut out banking "fat cats" in Coventry and Warwickshire.
  • The scheme allows investors to earn between 7% and 12% return on their investment through an online auction process.
  • Local companies can borrow between £50,000 and £3 million, with lenders able to bid as little as £1,000.
  • The scheme is designed to provide a lower-cost alternative to borrowing from high street banks.
  • The first loan completed was with Bell Finance Ltd. for £75,000 at a rate of 8.5%.
  • The scheme is free for investors to join, but only lenders who understand the risks involved will be allowed to participate.
  • BLN is looking to target companies and pension funds in addition to high net worth individuals.

Statistics:

  • Returns on investment: 7% to 12% per annum.
  • Loan amount: £50,000 to £3 million.
  • Minimum bid amount: £1,000.
  • First loan completed: £75,000 at a rate of 8.5% for Bell Finance Ltd.

Sources:

  • Byline: Jenny Waddington, COVENTRY and Warwickshire businesses.
  • Source cited: Kevin Caley, Managing Director of the Business Loan Network.
  • Source cited: Stuart Le Cornu, Business Angel investor and BLN investor.
  • Source cited: Kevin Caley, BLN, stating "For many years there has been an equity gap for smaller businesses, but now the credit crunch has created a much more serious loan gap..."

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