Help us develop the future of business banking

At Growth Street, we’ve spent the past year quietly building the future of business banking.  Our first focus has been on solving the business overdraft crisis plaguing firms, by providing companies with a flexible, fairly priced alternative that we call GrowthLine.

We’ve also had great success lobbying the government, regulators and others make business finance more transparent with our APR4SMEs campaign.

However, we know borrowers aren’t the only business customers to get a raw deal from most banks.  Businesses with excess cash are getting very low returns, with few business savings accounts offering more than 1.5%.

To date our capital for lending has come from our founding investors, but we’ve always wanted to expand the investor base to provide a better way for businesses to generate a return on their excess cash.  We’ve now developed our platform to a point where we would like to share this opportunity with you.

What do I have to do?

We would like you to lend between £1,000 and £100,000 on the Growth Street marketplace and provide feedback to our product development team on the experience.

Our marketplace operates on a 30 day notice basis, so you can get access to your funds quickly.

We’re keen to understand what information you want to see, how you’d like to get access to your funds and how we can make the experience fit more easily into your day to day operations.

Please note that you will need to be a UK company or a limited liability partnership in order to participate at this stage.

What do I get?

As one of our first lenders, you will receive a return of 6.5% AER on matched funds during this testing phase.  When we launch our marketplace to a wider set of customers later in the year, we expect lenders to earn 4% AER on average, based on the rates of comparable marketplaces, but we’re keen to reward you for helping us to develop our service.

Are you a bank?

No, Growth Street is not a bank.  We operate a marketplace, matching borrowers with lenders.  Lenders benefit from the Growth Street Default Shield, which has been designed to protect lenders from losses should borrowers default.  The Default Shield retains a portion of the interest paid by all borrowers and in addition holds capital equal to at least 6% of the outstanding loans. 

All of your unmatched funds are held in a client funds account, ring-fenced from Growth Street, in a regulated bank.

We’re proud of our risk management process, which is more advanced than any bank we know.  You can read more about how this works in this blog post by our Chief Risk Officer, Greg Carter.

What if I don’t get to lend now?

We’re keen to make our lending proposition the best in the market, so we’ll be slowly increasing access in a managed way as we learn from our first lenders to ensure we give all our customers the best possible experience. 

There will be also many more opportunities to help us build the future of business banking.  We launched our unique cash flow forecasting tool into private beta this week, so if you're a business that uses either QuickBooks Online or Xero, sign up today for free.

Later in the year we are releasing a new product that will unite our borrowing and lending experience.  This product will be a first for any marketplace lender and will put us firmly on the path to being the most advanced business banking provider supporting the growth of British companies.

Written on in Product