Ratesetter's $10 million milestone

Ratesetter, the P2P lender that launched in Australia in November 2014, has announced that it has grown its overall lending volumes to more than $10 million across more than 600 borrowers.

Ratesetter has also seen significant lender interest, announcing in July that more than 1,000 lenders are registered on its platform; growth that Ratesetter described as hugely important. That growth can only occur via borrower demand though.

“An important feature of our business model is that the amount of funds that can be invested in each of these lending markets is really dependent on the volume of loan applications we receive from creditworthy borrowers and the terms of those loans,” said RateSetter Australia CEO, Daniel Foggo.

“Interestingly, what allows the supply of funds from investors to reach an equilibrium with the demand for loans from creditworthy borrowers is the real-time movement of interest rates for each of our lending markets. In other words, we don?t set the interest rates, rather they are an outcome of the supply of funds from our lenders, and the demand for funds from borrowers.”

Click here to read a CANSTAR Q&A with Ratesetter CEO Daniel Foggo.