Lending Works, the first peer-to-peer lender to provide insurance against borrower default risk, is launching an Auto Income tool that allows lenders to draw down a regular income over the course of their lending term.
From 6 April, Lending Works customers will be able to elect to draw down their interest repayments, or a combination of their capital and interest repayments from the funds they are lending, creating a monthly source of income.
While peer-to-peer platforms are typically viewed as a growth tool, the Lending Works Auto Income tool transforms peer-to-peer lending into an income device for those who desire it.
Lending Works expects Auto Income to attract the most diverse set of customers yet to peer-to-peer lending. In particular, Auto Income will appeal to a growing set of pensioners for whom the high interest rates available via peer-to-peer lending are very attractive, but who do not wish to wholly lock away funds over a long period of time.
Nick Harding, founding CEO of Lending Works, commented:
“We are really excited about the opportunity Auto Income brings in terms of expanding our customer base to those who are looking to use peer-to-peer as an income tool as well as a growth tool.
“Our customer feedback shows that more and more later-life lenders are turning to peer-to-peer to earn great interest rates, but not all of them want to tie their money away for several years. Auto Income answers this need completely, providing the agility and flexibility that customers expect from alternative personal finance providers today.
“Innovation is one of our values, and we have lots more innovative ideas in the pipeline!”
Lending Works Auto Income can be managed on any mobile or tablet device and has a simple user interface, making the process of withdrawing money simpler and more flexible than ever.