ArchOver is a peer to peer lending platform where investors can lend money to established businesses, typically seeking working capital. All loans are secured on an all-asset charge over the business borrowing funds, and additional security is taken in the form of either a business’s Accounts Receivable which are insured, or on the recurring revenue of the business. The security package depends on the loan selected. The P2P platform’s parent company is Hampden Group.
Risk and Security
As investors are required to manually select borrowers, their exposure could be limited, meaning a default poses a significant risk. All loans are protected by two tiers of security. For Secured & Insured loans, investors’ capital is secured on an all-asset charge over the business and, additionally, against named Accounts Receivable (AR), where the ARs are insured. For Secured & Assigned loans, investors’ capital is secured on an all-asset charge over the business and, additionally, against the future contracted revenue of the business.
In the event of a default, ArchOver can step in and recover the assets. For any ARs not recoverable under a Secured & Insured loan, ArchOver will call upon the insurance. With Secured & Assigned loans, ArchOver owns the contracts (guaranteed revenue) which are taken as security and can dispose of them if a default occurs.
ArchOver does not currently operate a secondary market allowing investors to buy and sell loan commitments. Investors should be prepared to hold their loans to term.
In the event of insolvency, ArchOver’s parent company, Hampden Group, is contractually bound to step in and continue servicing loans. Hampden is a leading provider of management and support services to the insurance market, and has been in operation for over 30 years. Hampden invests in ArchOver, and also invests in borrowers across the platform. Hampden has several subsidiaries and manages in excess of £2bn of insurance assets. For more, read Orca’s ArchOver review.