£20m facility for one of ArchOver’s original borrowers
One of ArchOver’s major original borrowers, VFS Legal Limited, which specialises in providing cash flow loans to members of the legal profession, has secured an initial facility of up to £20m from OneSavings Bank (OSB) to finance its further growth and development. As a consequence, the group of investors who have lent VFS a total of approximately £2m over the ArchOver platform since 2014, will have their capital repaid early having received all due interest payments.
Commenting on the deal, Angus Dent, ArchOver’s CEO, said: “From our point of view this is a brilliant outcome. We were there for VFS in 2014 and our innovative funding provided the appropriate solution. Now a major institution has come along to replace not just ArchOver, but other external lenders representing over £5m. Additionally, OSB’s facility will finance the company’s future growth.”
“We are pleased because it supports our original assessment that VFS was a solid company worth backing. It is also a perfect illustration of how P2P crowdlending should work and the vital place it occupies in the market place. Our finance has run its course and a major player has stepped in to take it on from here. We have fulfilled our role for both borrower and lenders. You could truly say that this is a case where everyone wins.”
Norman Kenvyn of VFS said: “ArchOver and its lenders have done an amazing job in helping us reach this stage in such a relatively short space of time. This initial facility from OSB in conjunction with our strengthened capital base will enable VFS to move forward at a more rapid rate and to help fill the funding gap for our clients in the legal profession. We are now well positioned to accelerate our growth and very optimistic about the future.”
Speaking on behalf of OneSavings Bank, Steve Attree, Head of Secured Finance, said: “We acknowledge the positive role that ArchOver has played in supporting the business in its earlier development and are delighted to be able to fund the continued growth of VFS Legal Limited.”
Posted: 11th of March 2016