Target launches platform for new lenders

The Target Group has launched Lender Launchpad, offering both new lenders and their funding banks the assurance of long term control of funds and a flexible and rapid launch platform.

Target says for lenders, the approach enables them to focus on origination, and cost-effectively outsource the back-office to a specialist, S&P rated servicing company.   For wholesale banks, the approach offers long term security.

David Heath, finance director for Target Loan Servicing, says: “Lender launchpad offers new lenders both flexibility and a cost effective launch operation.

“Target will provide a compliant, efficient servicing and reporting platform cost effectively to conserve precious equity. Behind the scenes there is the option to use a wholesale ‘funder-friendly’agreement, which offers banks the confidence that their security is retained long term.  This is a real innovation that can help unlock wholesale funding.”

Heath adds: “This innovation from Target comes without the typical significant upfront costs of launching a new lending business.  Target can link most of its charges to the amount of new business being written, advancing that key break-even point. Target is already in advanced negotiations with several new market entrants.  Target is in the business of enabling new lending.”