NoB*nk. You need to remember this name, because it is a new way to both receive a loan and also invest in others. Curious to know how NoB*nk peer to peer works?
Gold Coast Fin-Tech Startup CEO Paul Boyd Skinner talks to us about the boom of his venture, which is most definitely not a bank. Think about all the high-net-worth investors out there in the world that have money sitting in the bank that’s earning them interest of 0% to 2%. Or even less than 0% when you take into account the bank fees.
And it’s not just the super rich. At some point, we all have money in our banks that we would love to be working for us, right? These people should be doing something with that money.
As far as I’m concerned, it’s not the bank’s money that’s in the bank. It’s your money. So, by not doing something with it yourself, you let the banks have all of the choices and the control. We wanted to give the control back to the people, which is why we created NoB*nk.
To put it simply; we came up with a way to let people WITH money lend it to people WITHOUT money in a way that is FAIR and EQUITABLE. Most importantly we removed the bank as the ‘big ticket middle-man’ between this transaction.
In the banking world, there are lots of rules and regulations. Most banks have very strict criteria on who they will and won’t lend to, what percentage they will lend, what interest rate, LVR, GRV, and a handful of other acronyms that keep those who really need a loan out of the ‘inner-circle’.
How NoB*nk Peer to Peer Works
At NoB*nk, we specialise in matching the individual preferences of our private lenders with the individual needs of our borrowers.
For the right interest rate, private lenders can make an informed decision to lend money to those who may sit slightly outside of the bank’s general lending criteria.
For example; last week we helped a developer to borrow $1.5 million against a block of land in just 7 days and without financials.
In this instance, the Private Lender was happy to proceed because he had the security of land. Where the bank’s said ‘no’, our Private Lender said ‘YES’. But with a slightly higher interest rate and with a slightly lower Loan to Value Ratio (LVR).
How NoB*nk Peer to Peer works for Foreign Investors
Currently, it can be difficult for foreign investors to bring money here in Australia from some parts of the world. As a result, we have been setting up systems with local high-net-worth club LUXIA to allow those foreigners make money available for Australian borrowers on terms that suit them.
Giving Australians access to foreign funds at reasonable rates is something that could seriously stimulate our local economy.
Many countries are becoming both politically and economically unstable, so it is not surprising that immigration in Australia is becoming more attractive.
Australia is now a target for foreigners wanting to park their worth as it offers a comparatively safe and stable environment with an upside that other countries simply don’t offer.
How NoB*nk Peer to Peer Works for Small Businesses Cashing In
The small-to-medium business sector is the most underserved sector in Australia. Yet it’s actually the largest business demographic in the world. Small businesses literally make the economic world turn.
When a small business gets refused finance from their bank, it’s usually because they don’t fit the bank’s exact lending criteria. But it doesn’t mean they are a bad business.
With NoB*nk, business owners now have a choice to get their money directly from the people that have it. Just because you don’t own your own home, have a salary, or have 2 years financials doesn’t automatically mean you don’t qualify.
We have so many products that can help businesses. From funding invoices at 90% to helping with equipment finance for obscure machinery. We can also help with business growth expenses like marketing. There’s something to help almost everyone.
We recently got picked up by Gold Coast based Venture Capital group Ventigo. They share our passion for helping everyday Australians and are investing heavily to help us make our dreams an even bigger reality.
Ventigo have brought an amazing team of business minds together to help us grow beyond a Gold Coast operation.
We just launched our new brand and website and are currently in development on our peer-to-peer lending app. This will take our very unique finance offering to a global market very soon.
We are also about to commence our national rollout through accountants and finance brokers to educate them about the offering and better service existing clients.
If I had to choose one thing I love most about waking up each day to do this job; it’s seeing the impact that we have on people and their businesses.
The statistics on failing businesses in this country are off the charts, so it’s a nice feeling to be part of the solution. Likewise, I love facilitating an investor to get a good return on their money in return for backing those businesses.
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Paul Boyd Skinner, Managing Director of No B*nk has spent his career over the last 16 years helping thousands of people and businesses secure non-bank lending.