Advisers

on the rebuildingsociety.com blog

Articles relevant to rebuildingsociety.com advisers cover various topics related to the world of P2P and P2B lending.

06th Nov, 2017

How To Get Your Loan Funded

At rebuildingsociety.com, we are always looking for smart ways to improve our processes in order to help our lenders and borrowers. We have made several changes this year, and as such, we decided to revisit our How to Get Your Loan Approved and Funded blog post from January this year.

Here, we take you through the three steps of the process: fulfilling criteria, your application going live, and a loan being fully funded. You can also see our loan funded flowchart for a visual overview of the process.


Fulfilling Criteria

Our Basic Criteria

We request that applicants fulfil some basic criteria. We require that:

  1. The applicants be Limited Companies, LLPs, PLCs or social enterprises.
  2. Companies provide at least two years trading and filed accounts. (If you are a recently incorporated Ltd. Company with a trading history as a different entity such as a sole trader then you may still be eligible.)
  3. Companies have no outstanding CCJs.
  4. Directors/Partners are UK residents.
  5. Turnover is greater than £150k. (We will also consider businesses that are on course to meet this requirement in the current financial year).

If you meet these criteria, we would love to receive an application from you. You can find our application form online here. On average, it takes less than 10 minutes to complete our application. Watch our Application Walkthrough video for a step-by-step guide. And, if you have any questions or require any help with submitting an application, you can reach us on 0113 815 0244 or at apps@rebuildingsociety.com.

Documents Required

Our assessment of the business consists of two stages: a financial review and a security review. The financial review will enable us to give you a quote and a starting rate for the loan. The security review will allow us to assess the eligibility of the security and confirm any discount that will be due.

Information required for financial review:

  1. Filed accounts of the last two years
  2. Up-to-date VAT returns since last filed accounts OR management accounts, including balance sheet and P+L, to within 60 days of the application
  3. Business bank statement for the last three months
  4. Details of any existing borrowing, including providers, monthly repayments and amounts outstanding

Information required for security review:

  1. Completed Statements of Assets and Liabilities for all directors
  2. Personal Credit Report for all directors (this can be obtained for free from noddle.co.uk)

Underwriter’s Questions

During the assessment process, our underwriters may have some questions, which they will raise via the listing discussion forum. You will receive an email notification when any questions are posted. To respond to these questions, simply log in and reply directly to the underwriter. Any pertinent topics will be left visible for our lenders once the loan goes live. Any information provided which is sensitive or not directly relevant for the lenders will be removed before listing.

Once your application is approved by the underwriters, you will need to review and approve the listing before it goes live.

Reviewing the listing gives you a chance to make any changes to the listing blurb before it goes live and is viewed by potential lenders. As the listing is the first thing potential lenders will see about your business, it is always beneficial to make sure that it contains sufficient detail. You want to give a true and fair picture of your business, what you need the loan for and why lenders should invest.

We also have the capacity to upload any pictures, files or embedded videos that you would like lenders to see, so you may wish to include some of the following:

  1. Business plan
  2. Introductory video
  3. Cash flow forecasts
  4. Asset valuations/property valuations
  5. Promotional pictures

Security Discount

Before your loan goes live, you may wish to consider the security you have offered. Well-secured loans attract lower final rates, fund faster and may also qualify for a discount on the starting rate of up to 5%. You can find out more here.


Your Application is LIVE!

Once you have approved the listing, we will email you to let you know that the loan is now live on our site and attracting bids.

It is good practice at this initial stage to add an introductory message on the discussion board to introduce yourself, so that the lenders are familiar with who they are directing their questions to.

Once the loan goes live, you will be asked questions by potential lenders. The answers you give will often dictate whether they decide to invest or not, so it is important that you ensure that you answer these in as much detail and as promptly as possible.

By subscribing to the listing discussion forum, you will be automatically notified via email each time a new question or reply is posted on your listing. You can also visit the site to engage with lenders at any time.

Our lender base is comprised of a wide cross-section of individuals of various ages, demographics, professions and business experience. Applicants have found this stage of the process to be a valuable opportunity to get the most out of the P2P lending experience, by engaging with potential customers and potential new business contacts, and gaining a number of potential new stakeholders with a vested interest in seeing their business succeed. Building a good rapport with our lending community from the start of the application will likely see the application fund quicker and at a better rate.


Your Loan Has Been Fully Funded

The day after the auction closes, we will send you a completion email which will lay out the steps you need to follow before we can release the funds.

This email will contain:

  1. A confirmation of the final interest rate and a breakdown of fees and funds
  2. A step-by-step guide on how to complete the online loan acceptance process
  3. The legal documentation for the loan (e.g. Loan Agreement, Personal Guarantee)
  4. Details of the ID, bank statements, additional contact details and security documents that we require.

We try to make the completion email as easy to follow as possible. However, if you do need any additional assistance with any part of this process, we’re always available to provide guidance, so please get in touch via telephone or email, on 0113 815 0244 or at apps@rebuildingsociety.com.

Once you have completed all of the steps and posted the completion documents back to us, you just need to wait for us to confirm the transfer. Once our team has reviewed the submissions, we will be in touch to let you know that we have authorised the transfer.

For more information about P2P lending, read our recent articles about Platform vs Lender Responsibilities, Key Risks and Private Peer Loans.


01st Sep, 2017

Changes to the Marketplace

Here at rebuildingsociety.com, we’ve been working hard to bring you a range of good quality borrowing applications for you to consider.

We are constantly reviewing and improving our processes to ensure that we both maintain and improve the variety of lending opportunities we can present to you.

We have recently changed the way our application process works, and this blog post is intended to notify lenders of our most recent change, along with how the change will affect the listing information presented for your consideration.
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30th Jun, 2017

10 Tips on the Best Ways to Invest on P2P Lending Platforms

Having operated a P2P lending platform for over five years, we’ve seen many investment strategies and styles and would like to share some of these with you. However, firstly you should acknowledge that every investor’s risk appetite is different. As with any investment, it’s important that you consider the risks and your personal circumstances before making any investment. The following tips are intended to educate and provide non-personalised guidance to assist.
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27th Feb, 2017

Full FCA Authorisation

rebuildingsociety.com has been awarded full authorisation from the Financial Conduct Authority in recognition of our compliance with sector-specific regulations.

We are very excited to share news of this major achievement and important milestone with our community. Authorisation means that we meet the rigorous standards set by the FCA and that we can soon start to offer the Innovative Finance ISA.

Financial Conduct Authority

 

 

Although we have been operating under FCA rules on Interim Permission since April 2014, being granted full authorisation helps us to continue building on the important relationships of trust we have with all our clients. We are proud to have achieved this milestone ahead of many other platforms, which we believe is testament to our small but dynamic team, systems, processes and controls.

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26th Jan, 2017

How to Get Your Loan Approved and Funded

15-10-26-shimon-keene-clarity-about-confusionNavigating your way through a loan process can often prove to be challenging and may seem like a long road obfuscated by a fog of red-tape and administration.

At rebuildingsociety.com we have made our processes as simple and transparent as possible to help you navigate the path to a successful loan application. You can either refer to our handy flowchart or digest the information below.
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12th Jan, 2017

FinTech North 2017

Following the success of the inaugural event in 2016, FinTech North 2017 is once again set to take place during Leeds Digital Festival week and aims to attract 350 delegates and support from the FinTech community in the Leeds City Region, across the UK, and internationally.

FinTech North 2017 will be hosted on the 26th April 2017 at aql in Leeds. The goal of the event is to generate collaboration and knowledge share within the financial services and technology community and to generate tangible economic benefits for the region.
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23rd Nov, 2016

The A-E of Reasons to Take a Business Loan

 Net worthAsset Purchase

Assets can often be purchased through a hire purchase agreement, but where this option is unavailable a business loan can fill the funding gap and allow you to spread the cost of potentially expensive equipment.  In some instances the asset can act as security for the loan which will somewhat reduce the risk.

In 2015 more than £29 billion in finance was provided by members of the The Finance & Leasing Association to assist with asset purchases.  This figure is further boosted by the work being carried out by the Peer-to-Peer funders who offer an alternative route to finance outside of the traditional sources.
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11th Nov, 2016

The Return of an International Sweet Treat

In 2014, Candy Hero Ltd. came to rebuildingsociety.com looking for an influx of funds in order to expand. They planned to use the investment to boost wholesale sales, strengthen equity and then open a new UK store in time to maximise Christmas time sales.

Candy Hero Ltd. was founded in December 2008, by two entrepreneurial siblings with a mission to bring unique, specialist and delicious sweets from all over the world to sweet-toothed customers in the UK and Europe.

The online shop was launched in 2009, to be followed later by high street shops in York and Leeds. Visit one of their shops, and prepare to be tempted by Birthday Cake Golden Oreos, exploding cinnamon candy, Nerds, giant lollipops, wasabi candy and boxes of Jelly Belly Buttered Popcorn Jelly Beans, to name just a few from the vast collection. The 10,000 square foot warehouse in Bradford sees around 4,000 unique product lines carefully handled by employees individually chosen to fit the company’s high energy, innovative ethos.


The sweet importers and retailers’ first loan application was a great success; brothers and co-owners Frank and Leo managed to raise the target £50,000 from investors. Candy Hero Ltd. invested the money they raised into the wholesale distribution of imported sweets, snacks, and groceries. They decided not to open a shop, as they were unable to find an adequate unit within their chosen city. Instead, they focused on their online sector. In the last two years, the company has:

  • grown turnover significantly; 2015 to 2016 saw 83% growth
  • increased their stock-holding capacity from 5,000 to 10,000 square feet
  • acquired a great number of additional wholesale customers
  • built a proprietary pre-order system
  • co-ordinated a huge UK product range comprising around 10,000 lines available for pre-order and export
  • improved internal systems with strong procedures that improve staff training processes
  • added powerful price and margin controls and mitigated currency fluctuations

Frank commented on their experiences with rebuildingsociety:

“They provided a smooth process prior to listing the application, support throughout, and a platform that is clear and easy-to-use. Rebuildingsociety is a very impressive social business that is a powerful tool when you need extra finance above and beyond what may have been already possible.”

Perhaps one of the keys to their online funding success was the company’s open-door policy. Frank discusses business with his team quite openly, “from the top to the bottom of the organisation, in response to any question.” Therefore, he embraced the discussion forums available on rebuildingsociety.com, believing that “talking business with lenders in a peer-to-peer environment with the same openness and clarity builds up the confidence to invest in us.”

Now, Candy Hero is back with a new loan application. The return borrowers are well-supported by rebuildingsociety’s lender base, something they hope will help them fund their £300,000 loan application. If successful, the team plan to refinance £184,000 to achieve cheaper interest per month and fewer capital repayments per month, and use additional capital to add to the stock cycle.

When asked why they decided to return to Rebuildingsociety, Frank explained that while their bank is very supportive, recently offering them a new import loan facility, they cannot approve a loan of this size. As he commented: “The only method of gaining a loan of this size would be crowdfunding and the only place I want to crowdfund is Rebuildingsociety.”

Read about the company on their website, and find out more about their loan application at rebuildingsociety.com.

Lending to businesses carries risk. Past returns are not necessarily a guide to future returns. Any unrepaid capital is at risk of arrears or default. To find out more please visit http://reb.so/risk


24th Oct, 2016

Changes to the Marketplace

changeWe’ve been working hard to bring you good quality borrowing applications for you to consider. Currently businesses that are eligible to borrow through rebuildingsociety.com, must have at least two years history, an average turnover of £50,000 a quarter and offer at least a personal guarantee as security. The average final rate paid by borrowers on our loan book is over 20% APR*, this rate is paid usually regardless of the security offered in support of the loan.
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