|Founded||United Kingdom (2009)|
|Founder||Rhydian Lewis, Peter Behrens|
|Headquarters||London, England, UK|
RateSetter is a British peer-to-peer lending company based in Bishopsgate, London. The company is known for having introduced into peer to peer lending the concept of a "Provision Fund" – an internal fund to insure against borrower default. Launched in October 2010, the company has matched more than £2bn in peer to peer loans and has over 400,000 investors and borrowers.
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 raised £20m in its most recent funding round.
RateSetter opened a site in Australia in November 2014. The Australian branch, with the office located in Sydney, is managed and majority-owed locally. It claims to have been the first peer-to-peer lending platform in the country open to retail customers. In March 2017, it was announced that over $100m in Australian dollars has been lent out through the platform. Equivalent to around £60m, the amount remains more than an order of magnitude smaller than the volume boasted by the British company.
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: Rolling, 1 Year and 5 Year.
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 (over £17,000,000 as of September 2016), generated by borrowers' payment of a "credit rate" fee based on their credit profile. As of September 2016, RateSetter claims that none of its individual investors have ever lost money.
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 4 Stars by Defaqto in the Crowdfunding (Loan based) category.
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