Investors earn $20 million in interest

Investors earn $20 million in interest

Plenti^ investors have now received more than $20 million in returns, securing another milestone for the company.

This milestone was reached without any investor losing a single cent of capital or interest. This unique achievement is thanks to the Provision Fund. Whilst the Provision Fund might have a funny name, it is a seriously good idea. Put simply, the Provision Fund is a pool of cash funded by borrowers and held in trust for the benefit of investors in the RateSetter Lending Platform. If a borrower defaults then the Provision Fund may compensate the lenders with funds matched to that loan.

The Provision Fund currently has a balance of over $11.7 million, which represents over 6% of outstanding RateSetter Lending Platform loans. Whilst the Provision Fund does not provide a guarantee that an investor will always receive all amounts of principal and interest due, it does provide a very helpful buffer and significantly reduces the probability of an investor experiencing loss.

Just the start

Plenti’s purpose is to give people the opportunity to invest in consumer loans and earn more on their money by using technology to connect them directly with creditworthy borrowers. To date, more than 12,000 registered Plenti investors have lent almost $375 million to 27,000 creditworthy individuals across Australia.

Daniel Foggo, Plenti’s CEO and founder, commented:

“We launched Plenti to give people the opportunity to get their money working harder, and we are very proud that we’ve generated $20 million of interest for our investors without losing a cent.

This is just the start of our journey towards helping Australians do better financially, together. We are opening lending as an asset class that everyone can access easily, filling the gap between the low returns of cash deposits and the volatility of shares.”

Investor voices

Here’s what some of our recent investors have shared about their experience with Plenti:

I decided to invest in consumer lending after a recommendation from a trusted source. I did some research and chose Plenti, I invested a small amount to see how this goes and I have been very pleased with the returns and their communication. As an investor I would definitely recommend Plenti.”

Gawler8, ProductReview July 2018

With over nine per cent return, this investment fits into my allocation to growth assets. I’ve certainly achieved my goal of using Plenti to diversify my portfolio and generate returns that are higher than bonds or other fixed interest instruments.”

Garth, September 2018

I would just like to say how much Plenti has helped me in my life. It gives me great financial independence, and the life of freedom I want to live. I also love the fact I’m helping ordinary Australians!”

Michael, November 2018
Andrew Jones

Written By Andrew Jones

^Plenti was known as RateSetter prior to August 2020.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Plenti as at the date of publication and may later change without notice.