2014 has been a good year for the alternative finance industry. It has helped thousands of businesses access finance in a transparent way that connects them with hundreds of potential stakeholders. With the £2bn lent mark smashed back in the autumn, 2015 promises to be a year of greater choice and volume for SME finance and here are a few reasons why:
It’s also a fantastic time to get a loan through rebuildingsociety’s ever-increasing lending community. Start your application now
rebuildingsociety responded to the recent Treasury consultation on peer-to-peer loans falling under ISA wrappers. We’ll keep you posted on the outcome of the consultation – ultimately we’re delighted that we’ve reached this stage so quickly and with the tax breaks for losses on p2p loans recently announced in the Autumn Statement, the case for investing in UK businesses is becoming even more compelling.
Here is a summary of our sentiment and response:
– We believe p2p platforms should have a secondary market to facilitate liquidity, although we don’t believe it is practical to enforce ‘guaranteed sale timescales’, as it is an open market. (more…)
People who lend money through peer-to-peer lenders will be protected from bad debt by new policies introduced in Wednesday’s Autumn Statement.
In an effort to make the UK a more attractive place for financial technology companies, the government revealed a plan to support P2P lending and crowdfunding platforms through a package of measures designed to remove regulatory and tax obstacles.
These include a new bad debt relief for lending through P2P platforms – allowing lenders to write off bad debt in a similar way to banks. This is something that has been lobbied for since rebuildingsociety first started, so we’re delighted about this. It makes investing much more efficient and we’ll be looking at ways to change our statements to reflect it.
There was a positive response from the business industry to the Chancellor’s Autumn Statement. Chiefly, the promise to look at the unpopular business rate system chimed with business owners and commentators, including the FSB.
“The FSB is delighted to see the double small business rate relief remain for another year and a full review of the outdated business rates system, something we’ve long argued for,” says its chairman John Allan.
National Insurance is set to be abolished for apprentices too. Mr Osborne said: “When a business is giving a young person a chance in life we’re going to support them not tax them.” In order to avoid the 50%+ youth unemployment rates in other countries across Europe, this feels like a sensible step. More could probably be done to align the education system to the future needs of the economy though, in industries like digital.
If 2014 was the year of regulation for the peer-to-peer industry, then 2015 will surely be the year of scale and third party involvement.
In the past couple of months the interest from third parties in aggregating our anonymous lending data or introducing borrowers or investors has noticeably taken off, which is great news for us and our stakeholders as it will mean awareness is raised in the markets that need it most – like the SME market.
They will also be sourcing news from around the alternative finance market, so fantastic resources for everyone.
Some of our partners include: