Canstar catches up with LendingPost Co-Founder Mitchell Atkins to discuss the LendingPost marketplace and how it is changing the way businesses access funds.
Why was LendingPost created?
Like most FinTech companies, it is the ability to disrupt the market, the traditional way of doing things, that ultimately determines the success and viability of the company and this has been no different for LendingPost. Having become tired of witnessing mortgage brokers earn healthy commission for even small loans, LendingPost Co-Founder Mitchell Atkins set out to disrupt the mortgage broking industry by offering a low touch, low cost solution to the funding needs of small businesses.
How does LendingPost work?
LendingPost created a marketplace that brings together small business looking for funding, and non-bankers and private investors looking to lend. LendingPost has a broad panel of over 80 certified lenders who compete for the borrower’s business. This process simplifies the traditional banking channel of requiring borrowers to research, meet and speak with a number of different lenders in order to find the best deal.
CANSTAR posed some questions to the LendingPost Co-Founder Mitchell Atkins, with his answers found below:
Q: There are a number of P2P lenders in the marketplace. What is LendingPost’s competitive advantage?
A: We are not exactly a P2P lender in that our lenders are comprised of a panel of certified non-bank lenders and are matched accordingly with a lending application. The competitive advantage of LendingPost is that it is a relatively low touch and quick process for the borrower, eliminating the lengthy delays associated with a traditional bank loan application, however retaining a commercial relationship with a credible and certified lender. Charges for using LendingPost also differ from traditional structures in that they are not fixed, rather performance based determined as a percentage of the loan funded.
Q: How does LendingPost match lenders to a loan application?
A: The process for matching lenders to loan applicants is quite standardised. An application is filled by a borrower, which is sent to LendingPost’s processing system. The details are checked and if it meets the specific criteria, the application is automatically forwarded to a certified lender, with the lender determined based on the information entered in the application. If the details entered do not meet a certain criteria, then an outbound call is made by LendingPost to attempt to rectify the issue.
Q: Are there standardised funding terms for every loan, or is it on a deal by deal basis?
A: The terms are based on the risk profile of each deal and as such, are on a deal by deal basis; the minimum funded is $5,000, however there is no maximum.
Q: How long do loan applications stay open for?
A: This ranges depending on the type of the loan. It should take around 24 hours for basic cash loans where the borrower has fully prepared all the require documentation. This can extend out to as much as 13 weeks when the loan is more complex and documentation has not been prepared.
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