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The ThinCats P2P Business Loans is designed to help SMEs fund the next stage of their operations. Once you apply, your application will be reviewed and listed to auction. Investors will then bid to fund your loan and once the auction is complete, the funds will be transferred to you. You will have to fixed monthly repayments, including principal and interest. The borrowing amounts range from $50,000 to $300,000 with terms from 6 months to 5 years. The interest rate ranges from 12% p.a. to 20% p.a., and the fees include a loan arrangement fee of 6% the loan amount, a monthly administration fee and legal and stamp duties.
How does a P2P business loan from ThinCats work?
You can apply for a business loan of between $50,000 and $300,000, either directly through ThinCats or through a sponsor or introductory. When you apply, your application will be assessed by the ThinCats credit team, who will also help you prepare an information packet that will be presented to investors. A loan auction will be held to get your loan funded.
Your loan is repaid in monthly instalments over a period of 6 months to 5 years, and the interest rate is determined during the loan auction process. You can repay your loan early without penalty.
What businesses are these loans suited to?
When you submit your application, the ThinCats credit team will review it using its risk assessment criteria. Here are a few guidelines to help you understand what kind of businesses they are looking to have on the platform:
ThinCats offers loans to help you grow your business, which can be used for working capital, equipment finance or infrastructure finance.
Experienced business operators who can demonstrate the ability to service the debt
The broad target market for ThinCats loans is as follows:
Top-up finance for established and profitable SME
Startup companies with industry-experienced directors
Short-term, medium-term or long-term construction finance, acquisition finance and general finance
What features come with a ThinCats P2P Business Loans?
This innovative loan comes with numerous features and benefits, including:
Benefits for borrowers and investors. You can benefit whether you're looking to borrow or invest. Borrowers can access funds to grow their business while investors can lend and receive competitive rates in return.
Large loan amounts available. You may be eligible to borrow anywhere between $50,000 to $300,000.
Loan security. These are secured business loans, which help to establish you as less of a risk to investors.
Fixed repayments. Your repayments will be made in fixed monthly instalments over a period ranging from 1 year to 5 years.
No fees for early repayments. If you find you can repay the loan early, you're able to do so without being charged a fee.
How much will you be charged?
Consider the following costs before applying for a ThinCats loan:
Loan arrangement fee: 6% of the loan amount, due on loan drawdown.
Monthly administration fee: (plus GST) of the outstanding balance.
Legal fees and stamp duty: These are fees incurred by ThinCats to process your loan.
FAQs
Generally, ThinCats is looking for SMEs that require loans for growth and experienced business operators who can service the debt. If you have a capacity and willingness to repay the loan, which includes principal and interest repayments, you may be eligible to apply.
Businesses need to have no overdue ATO debt and no history of defaults in order to be eligible for a ThinCats loan.
You'll need to provide information such as up-to-date BAS returns, quarterly management accounts, financial spreadsheets showing adequate debt service coverage, interest coverage, and positive current and projected cash flows.
Yes, security is required for this loan. Security may include real estate, but keep in mind that all loans are secured by a first charge over your assets and recorded on the Personal Property Securities Register.
Personal guarantees are obtained from all company directors.
Elizabeth Barry is the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
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