Insider Media Limited

A new online investment service which has been trialled in the Midlands is being launched nationwide this morning. Kevin Caley, managing director of ThinCats.com, told Insider the scheme – which has already provided funding for eight Midlands companies – aims to invest £100m in businesses in the next three years.

The website, which began trialling in January this year in the Midlands, has so far processed eight loans totalling more than £1m.

A clothing company in Cannock secured £250,000, the largest of the loans agreed so far.

Caley told Insider: "The investment service cuts out the cost of loaning from a bank, and the savings are shared between the borrower and investor. There are a couple of organisations which offer a similar peer-to-peer lending system, but don't offer the large amounts we do. Our main competition is the banks."

The investment service is being launched nationwide today (20 June) and will offer funding of between £50,000 and £1m.

Caley said that the high level of interest from businesses needing a cash injection was so far slowed by a lack of willing investors.

"The biggest frustration is that there are lots of businesses which need funding, but not enough lenders as yet – but we're hoping to attract more as we launch the website nationally.

"We began by trying to attract angel investors, and they've been interested in the low risk factor – it's not volatile like the stock market."

Caley said that following on from ThinCats' six-month trial in the Midlands, in which £1m has been invested, the organisation now aims to invest a further £5m nationwide by the end of the year.

"We're aiming for another £5m this year, £30m the year after that, and want to invest £100m in businesses over the next three years," said Caley.

Caley, who has 27 years' experience in venture capital and small business finance, said he felt the venture was launching at a good time.

"Banks are so reluctant to lend, but businesses still need support and finance – this is the perfect opportunity to offer an alternative and get our brand and reputation established.

"In the long term, the banks will come back which will drive our investment rates down, but even then they won't be able to compete with our rates, as their overheads are so much higher than ours."

So far, eight companies from across the region have secured investment, including clothing distributor TGI Corporation. The company imports hooded jumpers, primarily for the university market, and secured investment of £250,000 over three years.

Armstrong Brands, a clothing retailer and John Carr Motorcycles, both from Derbyshire, secured investment of £105,000 and £75,000 respectively.