23rd Jan, 2013

What would funding do for your business?

The Funding for Lending scheme is reported to be fuelling a resurgence in the housing market, but there are doubts over its effectiveness in getting funds to businesses.

Many would say loosening controls over lending to individuals and businesses got us into this mess in the first place, but to rule out profitable businesses with dynamic leaders looking to grow, lenders are surely missing the opportunity to back a winner.


17th Jan, 2013

At Least HMV’s Closure Has Increased Sales in Crystal Balls

The unfortunate news about HMV, Jessops and Blockbuster this week has turned even your most casual observer into a retail expert.

Anyone can take a look down their local high street and forecast the next big failure, but at rebuildingsociety.com we’re excited about the next generation of high street retail and the signals these failures tell us about the future of the financial services market as we draw the comparisons between the two.

At the heart of this is value and choice. (more…)

15th Jan, 2013

Lender Tip: Ask Borrowers Questions Before You Lend

It’s something not many of our lenders have chosen to do so far, but there is the option on our community pages of asking our borrowers questions about their financials or plans, in fact any part of their business that you feel is important.

You might like the look of an opportunity, but just want to be clear in your mind about an existing debt or the future plans of the business. If it’s a 5 year loan, what is planned to change in that time?

Lenders are entitled to ask these questions and we encourage the debate. To get started, have a look at the Marketplace and then select a business. From the borrower homepage, choose the discussion tab and enter your question. Borrowers are notified of the question and encouraged to reply as soon as possible to keep the auction process moving.

11th Jan, 2013

An alternative to Funding Circle is a good thing for peer-to-business lending

Businesses and consumers are increasingly driven by ethical decisions. In the aftermath of a financial crisis which has exposed the worst aspects of financial services, it’s time for everyone in the UK to look at how they use their money to make sure it is going to good use, rather than supporting reckless speculation.

Peer-to-business lending does this. With the dual benefits of loans for growing UK SMEs and above average returns for individuals, it is curing two of the most noticeable after effects of the crisis.

The market leader is undoubtedly Funding Circle, which has done much to raise the profile of the market and should be congratulated for it, but there is another way to connect businesses and individuals which goes further than transaction.

We facilitate relationships between businesses and their lenders by encouraging lenders to go the extra mile and earn their interest by simply helping out businesses where they can. Examples of this are:

  • Following the borrower on Twitter and retweeting messages
  • Making a LinkedIn introduction to a potential client
  • Suggesting a candidate for a job opportunity
  • Becoming a mystery shopper and offering feedback

The advantage for the lender in doing this is they’re helping the business to grow and they’re more likely to have their bids accepted by the borrower in the future as a way of saying thank-you when the borrower refinances.

We’re passionate about rebuilding society by changing attitudes and habits towards money and ultimately making it all go further.

We put our money into supporting Positive Money because we believe in their values.

07th Jan, 2013

Disintermediation in Banking is a Positive for Advisers

Here’s a letter from rebuildingsociety.com’s Julian Wells, published in Mortgage Strategy’s 7th January 2013 issue:

I was interested to read that Bank of England executive director of financial stability Andrew Haldane argue that increasing use of technology in organising loan finance could see intermediaries become “surplus links in the chain”.

In an interview with the Independent, Haldane said improvements and innovation in technology, such as peer-to-peer lending and crowd-funding sectors, could see execution-only become a “a more realistic possibility”.

He said: “With an information-based web, the disintermediated model of finance becomes a more realistic possibility.”

A number of brokers took exception to Haldane’s talk of disintermediation on Mortgage Strategy Online.

But I think there’s some confusion here – the term ‘intermediation’ means something different in the banking industry than it does to all of us.


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