27th Sep, 2013

Regulation: An update

On Tuesday 24 September, an event was held by the UK Crowdfunding Association, of which rebuildingsociety.com is a recent member, and the Financial Conduct Authority (FCA). The FCA is one part of the former FSA and is charged with regulating the peer-to-peer industry from April 2014.

The meeting was designed to give platforms an update on who needs to apply for authorisation and how to go about it. Donation-based and reward-based platforms will not require authorisation and for anyone interested in reading more on the Threshold Conditions for authorisation, you can read the FCA’s guidelines here

So although the meeting was not supposed to be about policy, inevitably the conversation moved that way.

What’s becoming clear is a split in how the FCA plans to address peer-to-peer lending (including peer-to-business lending) and crowdfunding, which reflects the gap in risk between the two.

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24th Sep, 2013

Case Study: Accountancy practice buy-out financed by crowd of lenders

Mergers and Acquisitions specialist, Mike Harris, began his own business journey with the purchase of established chartered accountancy firm Chegwidden & Co in 2009. That was financed by a bank loan, which took a frustrating four months to materialise, so next time around he resolved to try something different and approached rebuildingsociety.com for a loan to fund payments to the former owners of his current takeover project.

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17th Sep, 2013

Are you a Flipper, Hoover or Holder?

When rebuildingsociety.com first began, we thought the auction would be the driver of the site. It has the excitement of watching loans fill up, competitive bidding and it produces all the good PR. But quite soon after we started, we realised that liquidity and choice were equally as important and for some people, more so. Underneath there is a determination to increase the flow of cash into Britain’s SMEs, but each investor has their unique way of earning a return. Here are a few different types of investors that we’ve started to characterise:

The Flipper

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13th Sep, 2013

With 15.1% Average Return on rebuildingsociety.com, What Now for ISAs?

In one year’s time ISAs could look very different. All going well, rates for savers will be boosted by the regulation of peer-to-peer lending, which is being considered as a solution to the tax conundrum faced by HMRC in respect of peer-to-peer.

Watching ISA rates get cut pains everyone. Fundamentally it’s a good product – it allows people to prudently save cash, knowing their savings are as safe as they possibly can be through the Financial Services Compensation Scheme.

However, “guaranteeing” a sub-inflation return really is a false economy and it’s time for consumers to ditch this outdated product. Yesterday, the Government-backed NS&I announced cuts of 0.5%, reducing the rate to 1.75%.

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03rd Sep, 2013

rebuildingsociety.com Passes £500,000 of Loans

We’re delighted to have passed £500,000 of loans to UK businesses.

We’ve now completed 11 deals and have facilitated over £210,000 of micro loan trades on our micro loan market, which until yesterday’s £110,000 deal completed, represented over 50% of completed loans. We think this is fantastic news for the site, as it means lenders can be confident of an exit from a loan if their strategy is to divest.

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