Onloan, the well-known rental service, has announced to halt its operations from March this year – owing to pandemic and tax-related concerns. The UK-based fashion rental platform offered two monthly membership packages wherein consumers could rent £500 worth products for £69, or rent four items selected from pieces worth up to £1,000 for £99.
Onloan chose to support brands through wholesale partnerships as the latter too constantly need cash to be ethical with suppliers.
However, the rental platform said that holding inventory for rental meant that prospective investors will not be able to claim under the Enterprise Investment Scheme, which allows investors to claim up to 30 per cent IT relief on investments, giving an incentive for some of the risk normally associated with funding small companies.
Consequently, Onloan believes, it has become very difficult for it to raise the investment that it needs to grow to the next level.
Meanwhile, Onloan said that business will continue to operate till the middle of March 2022, while the founders of the rental platform will seek to explore fundraising opportunities.
Founded by two friends, Tamsin Chislett and Natalie Hasseck, On Loan is the go-to source of incredible clothes for a generation of women who are tired of the high-street but are priced out of luxury.
