Thincats Investor Guide

By AltFi on Tuesday 22 September 2015

Alternative Lending


ThinCats provides secured business loans. As an investor you are giving money to a business borrower.

Key Facts & Figures

Launched: 2011

Minimum Investment: £1000

Minimum Term: 6 months

Requirements to invest: Individuals, limited companies and pension funds. However, ThinCats is intended for experienced investors who probably already manage a portfolio of investments. You must invest in sterling and transfer from a bank that has acceptable Anti Money Laundering Policies (all EU banks are included)

Cumulative volume lent: £126,9327,000

Type of borrower: Businesses

Money lent in last 12 months: £50,005,000

Market share over last 3 months according to Liberum AltFi Volume Index UK: 1.66%

Current rate of return: 9% Weighted average interest after all costs and provisions for losses but before income tax

Getting started

  • Once registered money can be deposited into your account and you can access the lenders' forum and bid on auctions. 

Getting money on the platform

  • Each member is allocated a unique membership number. This number must be quoted when depositing funds into your client account. Thincats contact investors with exact transfer information once they have registered

How to invest

There are two types of auction:

  • "Fixed Rate" where the borrower offers a single fixed interest rate and the loan is filled on a first-come-first-served basis
  • "Variable Rate" where there is an auction. Investors choose the amount they wish to lend and the interest rate they wish to lend at. The software automatically makes up the syndicate. Each successful lender (those who offer the lowest interest rate) will get the rate they asked for.

Do investors get a choice of what they invest in?

Yes - you may select the company you wish to invest in

Monitoring your account

Investors can view and monitor their investments from their dashboard

Understanding the risk

  • Investment with ThinCats involves making secured loans to small and medium sized businesses
  • The value of your investment will not go up or down depending on the performance of financial markets
  • If the borrower fails to repay then you may not get all of your money back


Withdrawing money

ThinCats operates a secondary market where investors may be able to sell their loans before the normal loan term ends. The ability to sell and the price you receive depends on the supply and demand at the time. Usually loans sell on the secondary market very quickly and often at a profit. When there is a problem or uncertainty over a loan then it cannot be sold on the secondary market. For example, if the borrower has missed a repayment.

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