|Founded||United Kingdom (2009)|
|Founder||Rhydian Lewis, Peter Behrens|
|Headquarters||London, England, UK|
RateSetter is a British peer-to-peer lending company, based in Southwark, London. The company is known for having introduced the concept of a "Provision Fund" into peer to peer lending. Launched in October 2010, the company has matched over £605m in peer to peer loans and has over 776,000 registered users. In terms of the number of new loans created, RateSetter is the UK's largest P2P lending platform.
RateSetter's holding company, Retail Money Market Ltd, was incorporated in October 2009 by Rhydian Lewis, an investment banker from Lazard, and Peter Behrens, a lawyer turned banker formerly of Royal Bank of Scotland. The company was privately funded from the start by angel investors, and has completed three rounds of funding totaling £8m, the most recent £5m in July 2013.
RateSetter opened a site in Australia in November 2014.
RateSetter is based on the principle of an exchange, with borrowers and lenders competing for matched loans based on price, with both sides of the market specifying the rate they will accept. The firm has four markets for lenders to participate in: 1 month, 12 months, 36 months and 60 months.
Borrowers can apply for a loan for between 6 and 60 months. The company has strict lending criteria, accepting between 12 and 15 per cent of borrower applications.
The firm introduced to consumer finance the concept of a "Provision Fund" to reimburse lenders in the event of a late payment or default. This is a capital sum (currently over £12,600,000), generated by borrowers' payment of a "credit rate" fee based on their credit profile. To date, no saver has ever lost a penny with RateSetter.
The firm won the Moneywise Most Trusted Alternative Financial Provider Award 2013. In May 2013, it won the Credit Today Award for "Best Alternative lender of the Year - Consumer". It has been awarded 5 Stars by Defaqto for its 3, 4, and 5 year fixed personal loans.
The firm is a founding member of the P2P Finance Association, the first trade association for the peer to peer finance industry.
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