A brand new concept in the world of online social saving from the UK is live! Squirrl.com allows lenders to invest in secured loans, made to established commercial organisations, and achieve interest rates between 5-15%

Share Article

Squirrl.com provides an online finance platform for well established commercial organisations (Suppliers) to offer secured loans to individuals. This is designed to overcome the cash flow problem arising from a business model where assets are provided to their customers and paid for over a period of time through Pay for Use Agreements. Investors using the Squirrl.com platform can lend money to this type of Supplier in return for higher interest rates than they would get from the high street banks, and have their loans secured. Supplier Pay for Use Agreements are grouped into portfolios to minimise risk and the loans plus interest are paid back quarterly to the investors from the cashflow generated from the portfolio.

Squirrl.com provides an online finance platform for well established commercial organisations (Suppliers) to offer secured loans to individuals. This is designed to overcome the cash flow problem arising from a business model where assets are provided to their customers and paid for over a period of time through Pay for Use Agreements. Investors using the Squirrl.com platform can lend money to this type of Supplier in return for higher interest rates than they would get from the high street banks, and have their loans secured. Supplier Pay for Use Agreements are grouped into portfolios to minimise risk and the loans plus interest are paid back quarterly to the investors from the cashflow generated from the portfolio.

Sophie Coles, Director of Business Development at Squirrl.com explains the situation. “Since the banking crisis of 2007/2008 the flow of money available to commercial organisations to finance Pay for Use Agreements has almost dried up yet there is a huge demand from all sectors for such contracts. Traditional funders have become increasingly inward looking and preservation of their balance sheets is their primary concern. There had to be another way to fund these contracts that are often underwritten by high quality Customers and supported by highly reputable Suppliers. If someone was prepared to lend to another person on an unsecured basis, as demonstrated by the P2P marketplace, then surely that same person would lend to good quality businesses secured against a cash flow of the Pay for Use Agreements.”

“Squirrl savers can achieve interest rates between 5 – 15% with no lenders fees payable. Loans are made to established commercial organisations and then secured against the cash flow from a portfolio of at least 20 Pay for Use Agreements. There is always a substantial buffer built in to the security as the loan is only for the capital element of the contract and not the service element. On average there is £2 cash flow available to pay every £1 of loan. Squirrl.com has also designed a 13 point risk mitigation programme which is designed to keep risk to the investor as low as possible.”

As part of our initial launch and Jubilee celebrations Squirrl.com is offering the first 200 Squirrl savers who lend £100 or more the chance to be entered into a special prize draw. Squirrl savers will also enjoy a special 4% interest rate from the moment their funds are reserved on an auction up until the point their bid is accepted when they will enjoy the interest rate they set.

In the current economic climate savers are being hit hard and are looking for alternative forms of investment with higher interest rates than the high street banks can give them. On the flip side Suppliers’ customers are placing an increasingly high demand on renting goods through Pay for Use Agreements rather than having to pay for the goods upfront in one lump sum. Where businesses and most notably public sector organisations have to make significant cuts, paying for goods on a usage basis makes financial sense. Squirrl.com is able to bring the two together delivering significant benefits to both parties, providing a perfect solution.

Go to http://www.squirrl.com to find out more.

ENDS

Squirrl.com

The Squirrl.com team are based in Lincoln (UK) and provide back office administration as well as a customer services facility. The website has been developed using experienced online financial services developers along with legal documentation from leading lawyers in the UK.

Squirrl.com wanted to work with just one Supplier initially, to prove the concept. The Supplier chosen, the Danwood Group Limited, are the largest independent reseller of office print equipment and service in Europe with turnover exceeding £250m per annum. Danwood are fully supporting the launch of Squirrl.com which will pave the way for other Suppliers to use this form of finance in the future. During the initial launch the security being offered is restricted to public sector and public company agreements, being the most financially secure and lowest risk to the investor.

Please visit http://www.squirrl.com for further information and to view the current investment opportunities available.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sophie Coles
Follow us on
Visit website