LO transPEERancy: Cubefunder

Grupeer has proclaimed 2020 the year of transparency, or as we call it #transPEERancy, so we decided to make the series about our loan originators. Many of our clients ask us any questions, so we will publish updates about the great non-banking financial institutions that fulfill a variety of roles within the economy besides earning great returns for our clients.

Partnership with Grupeer

The UK may have left the European Union, but it is still present on our platform. Our trusted loan originator- Cubefunder is offering business loans for investment yielding 10-11%. The deals on Grupeer are for a period between 4 months to 44 months to suit all investment horizons short term investment goals and for those investors, who like their money to constantly work for them.

Grupeer has partnered with Cubefunder more than six months ago and we have published an interview with its founder and CEO Gary Miller-Cheevers in our blog. Cubefunder is an alternative lender to British small and medium-sized enterprises, who failed to get the funding in their banks. Gary has experienced all the hardship of a small business owner on his own skin and decided to change the situation by offering smart financing solutions to small businesses. Moreover, the cash-flow problem is the biggest cause of start-up business fail in the UK. The loans Cubefunder offers vary from £5,000 to £100,000 (£250,000 for existing established customers).

What’s new with Cubefunder?

The end of October has marked the two full operating years of Cubefunder. During the second fiscal year, Cubefunder has issued £8 million worth of loans to 400 customers at an average of just under  £20,000. The fiscal 2019 year has a pre-tax profit of £632,000. The defaults were very low- under 3%.

The results are good; however, plans are even more ambitious- Cubefunder plans to grow the number of issued loans by nearly 80%, reaching £14 million and expect to have a profit growth of around 90%.

Financials aside

Cubefunder is sponsoring several sporting causes – the career of Calum Fyfe a young golf pro through the Golfing4Life program. Golfing4Life supports golfers who don’t have access to the funds required to play professional golf. Also, they sponsor Taplow United Ladies FC where Abbie, our collection manager plays as a striker.

Moreover, Cubefunder is a proud advocate of ‘Women in Business’ where 60% of our employees across all levels of the business are women.

Client testimonials

If you wonder how the regular small businesses in the UK benefit from the loans given by our loan originator Cubefunder and by your investments in these loans- we have listed below three great success stories to inspire you.

Many and diverse businesses coming from different industries are telling their stories- what has attracted them to take a loan with Cubefunder. Some were drawn to the great reviews, some to the personality of the Cubefunders management and some understood that with Cubefunder they will not only be borrowers but will have a proper business relationship.

Helping to grow the family scaffolding business

WBM Scaffolding company, working in private and housing sectors were in business for over 15 years, operating in London and Kent area. WBM Scaffolding wanted to go the extra mile and grow the business by taking on the bigger contracts. But of course, in order to do so, they needed to purchase more raw materials and other special equipment to grow the business capabilities.

After the owner has approached Cubefunder, Harry with the team was in their offices within a couple of days. The loan from Cubdefunder helped to grow the business and the revenues increased almost twofold – from GBP 1.5 million to GBP 2.9 million. While the number of subcontractors increased from 25 to 37.

Helping the sausage start-up

After Simon Llewellyn, a nuclear engineer, was dismissed by his bank and even the Dragon’s Den show with his idea to make sausages with extra hot sauce, he almost lost hope to get funding to start the business which he was passionate about. His credit rating wasn’t great as he has been growing other businesses in previous years. Traditional financial institutions overlook customers like this, but not the Cubefunder.

After contacting Cubefunder Garry came down to see what the team was doing and looked at how the business could be built on its merits. Of course, prior to lending money, the due diligence was performed and the numbers were analyzed. Soon after the loan was granted, the Sausage revolution was able to open its door to the public.

Helping the luxury furniture brand

Houzlux is a luxury furniture brand from the small town of Wilmslow, 11 miles south of Manchester. The company produces bespoke custom-made sofas and chairs of any size and in any fabric. This makes Houzlux a brand, aimed at a very high-end market.

Eventually, the founder of Houzlux Maria realized that they need to increase output and produce furniture for a bigger presence in the showrooms across the country. Unfortunately, the bank where the Houzlux had an account declined a loan application.

Luckily, Maria came across Cubefunder and realized that they will not only provide the necessary funding but also will be mentors in the business as well. The funding helped to achieve the great plans the Houzlux has aimed for.

 

We hope that you enjoyed reading an update on our Loan Originator, please leave the feedback, so we know which questions interest you the most!

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2 Comments

  1. Excellent initiative!
    Continue to work in this direction.
    I believe that the transparency is the most important thing for your clients to increase their trust.
    This is essential to increase the credibility of good p2p lending projects, like yours.

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