Lending volume is picking up at marketplace lender Marketlend, with the benefits of comprehensive insurance cover attracting larger investments, allowing the newcomer to fund larger loans.One of an array of local startups in the Australian marketplace lending sector, Marketlend is, like many others, relying on wholesale funding and loans from the well heeled to grow its business.A business update circulated to its lenders this week provides a glimpse into the progress of its business.Data that was current as of early August 2015 shows Marketlend fielded A$15.8 million in loan applications, with only $1.1 million in loans funded.The average yield on loans for lenders - net of transaction fees - was 14.1 per cent, well in excess of returns publicised last week by Ratesetter, another recent entrant into what is becoming a vibrant sector.The actual rates paid by many borrowers approach 20 per cent and in some cases exceed this level. The high interest rates reflect the appeal of the financier as an alternative to borrowing on credit cards, according to Leo Tyndall, principal of Tyndall Capital, the founder of Marketlend.Tyndall said yesterday the firm settled more than $500,000 in further loans since August, with some funders now willing to chip in up to $100,000.The company said that, with loan insurance (from QBE) now in place, "we are starting to move up to loans of $200,000."
Tyndall said there were "no failures in any payments" by borrowers to date.As reported last month, Marketlend is on the hunt for $25 million in debt funding to support growth in its business finance niche. It is offering an indicative margin of 500 basis points over BBSW.