Two peer-to-peer lenders have predicted future losses despite seeing revenues increase
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div>Two peer-to-peer lenders have predicted future losses despite seeing revenues increase.
RateSetter has lent £300m in 2014 – a figure which it has already surpassed this year.
The company, however, expects to make a loss over the next two years as it starts a “major investment drive” that will include hiring, marketing and a new premises.
Rhydian Lewis, Founder and CEO of RateSetter, told Bridging & Commercial: “Our latest results show we are profitable and proves that our model works.”
“Our focus now is to scale up while continuing to deliver great value to our investors – this will include serious investment in marketing to boost awareness.”
P2P lender Zopa also predicts it will not be profitable overall next year, despite doubling its revenue last year.
However Giles Andrews, Zopa’s Co-Founder and Executive Chairman, told Bridging & Commercial that he is happy with the lender’s performance.
He said: “We are delighted that we have doubled our revenue in 2014, and we are on track to more than double it again this year to the region of £23m.
“Zopa was profitable in 2011 and 2012 and we will see profitable periods next year, although 2016 will not be profitable overall as we continue to invest for growth.
“We expect to be profitable in 2017 as we continue to deliver on the same business plan.”
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