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Platform Analysis: ArchOver

Key Information

Founded:
April 2010
Company No:
7235482
FCA Permission:
Fully Authorised
FCA Number:
723752

Account Details

Account Types:
General Investment Account (GIA) and Innovative Finance ISA (IFISA)
IFISA Status:
Available
Investment Structure/Bid Type:
Manual
Loan Type:
Business

Product Name

Secured & Insured

Investors lend to creditworthy businesses and have their capital secured on an all-asset charge over the business borrowing and, additionally, against the Accounts Receivable (AR) of the business, which are insured.

Product Details

Term:
Bespoke
Min Investment:
£1,000
Max Investment:
50% value of each loan
Advertised Rate:
6.5 - 9%

Product Name

Secured & Assigned

Investors lend to creditworthy businesses and have their capital secured on an all-asset charge over the business borrowing, and, additionally, against the future contracted revenue of the business, where ArchOver is assigned control of these contracts.

Product Details

Term:
Bespoke
Min Investment:
£1,000
Max Investment:
50% value of each loan
Advertised Rate:
8 - 8.5%

Amount Lent & AUM

Loan Purpose

Geographic Breakdown

WEIGHTED BORROWER RATE

Year Min Borrower Rate Average Borrower Rate Max Borrower Rate
20145%5.99%6.75%
20156%7.02%8%
20165.75%7.16%10%
20175.5%7.36%10%
20186.25%7.06%8.5%

WEIGHTED LOAN AMOUNT

Year Min Loan Amount Average Loan Amount Max Loan Amount
2014£100,000.00£170,000.00£300,000.00
2015£45,000.00£157,981.82£1,000,000.00
2016£30,000.00£228,348.48£1,300,000.00
2017£50,000.00£302,223.30£2,400,000.00
2018£100,000.00£218,750.00£350,000.00

Financial Summary

31st December 2016 31st December 2015
Revenue £582,846 £266,837
Loss -£1,137,492 -£1,095,609
Net Assets £1,028,379 £178,034
Cash Position £718,810 £316,155

While ArchOver is not operating in profit, the company’s most recently filed accounts displayed growth in the key performance indicators, as set by the company’s directors. Namely, doubling revenue and more than tripling the investor base in little over a year. ArchOver is a subsidiary of Hampden Group, the platform’s majority shareholder.

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Overview

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.

Recovery Process

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.

Withdrawing Funds

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.

Platform Failure

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.