Private Peer Loans

Many business owners do not need to borrow from a bank. Entrepreneurs are often able to privately arrange loans with wealthy individuals, perhaps with the assistance of a solicitor. Through the Private Peer Loans offering, borrowers and lenders can arrange their loan quickly and cost effectively.

How It Works

A business creates a private loan profile listing, by providing the loan application information. then reviews the application in line with its credit risk analysis policy and awards a risk rating. The loan profile is created, available only for the borrower to share by private invitation. Borrowers are given a link to their loan profile, which they can distribute to trusted investors. This has the advantage of keeping key performance information private.

The arrangement fee for Private Peer Loans is 3.25%, which is used to pay for the setup of the legal agreements and to administer the formalisation of the 36H loan agreement, in accordance with regulatory peer-to-peer lending standards. There is no margin taken between what the borrower pays and what the lenders receive. This has several advantages.

Benefits for the Borrower

  • Privacy: Keep key performance information confidential
  • Confidence: Invite known and trusted investors
  • Exclusive: Pay interest to your invited syndicate members
  • Flexible: Option to pay up to two interest-only periods per year

Benefits for the Lender

  • Tax advantages: Use your ISA allowance/bad debt is tax deductible
  • Liquidity: A secondary market allows you to divest when you need your cash. This requires that there is a demand for a loan, so if a loan falls into arrears you may need to sell at a discount to create demand.
  • Security: Missed repayments are chased by, who will enforce the security in case of default
  • Communication: The discussion forum makes it easy to get updates on business performance and to interact

Let us be your partner in arranging your private loans. By using our loan agreement template and regulated platform, you are able to provide reassurance to your lenders and make the most of our easy-to-use interface to manage communications with your group of investors.

Simply select the option Loan Syndication: Private when applying for a loan. We will then review your application, give you a unique URL and let you begin lobbying investors. Borrowers also have the option to choose to request an unsecured business loan.

We will give you some collateral to use when promoting your loan. Financial promotions need to be clear, fair and not misleading, so our compliance team will help to make sure your messages to invite your investors are compliant.

Watch the video below to find out more about the simple and straightforward application process.