B2B crowdlending platform ArchOver has teamed up with credit insurer Coface to protect its lenders from possible defaults on business loans, for a total amount of up to £100mn.
Each loan application will still have to meet the criteria of the initial and ongoing credit analysis processes of both ArchOver and Coface, but overall the new partnership should result in a time and cost reduction for borrowers.
Angus Dent, CEO of ArchOver, says: “This represents a major advance for us and reinforces the double protection aspect of using credit insurance to protect our lenders alongside the security we take over borrowers’ accounts receivable.”
“The choice of credit insurance partner followed a lengthy selection process and reflects our view that Coface is best able to meet our current credit insurance requirement as well as accommodate our future plans to expand beyond the UK. We have teamed with a genuine world leader in the sector and, most important of all, both parties regard this not as one deal in isolation, but as a trading collaboration that will evolve for mutual benefit.”
According to the company, Coface’s detailed information on companies and markets will help it onboard good quality borrowers, and support its monthly risk monitoring of all its loans over their term – a feature that will set ArchOver apart from its competitors in the crowdlending space.
Frédéric Bourgeois, managing director of Coface in the UK and Ireland, adds: “Coface always strives to support businesses and develop markets so this partnership is perfectly aligned with our objectives. ArchOver’s approach to protecting its lenders is one that we like and fits in very well with our own thinking and business model.”