on the rebuildingsociety.com blog

Miscellaneous articles covering a variety of business-related topics can be found within the uncategorized category.

11th Oct, 2017

Loan Profile – Key Risks

We’ve recently updated the layout and information displayed to lenders on each of the loan listing profiles. These changes have been made to make the information about each of the lending opportunities easier for you to digest and for you to make a more informed lending decision each time you choose to lend to a business.

The listing overview page will now be divided into four key sections, all visible on one page. These sections are ‘About the Business’, ‘About the Loan’, About the Risks’ and ‘About the Security’.

The most significant changes to the loan listing profile is the ‘About the Risks’ section. This is a brand-new addition to each listing. This section will not only show you the risk rating of the particular loan, by hovering over the risk rating you will be presented with the historic performance of other loans funded on the platform of the same rating. The historic performance will show the default rate as well as the bad debt rate of all loans of the same rating.

About the risk - Default

Why is this information important to you?

As a lender, you need to make a decision on when to lend and which businesses you want to lend to. In order to make a more informed decision, you need to understand that regardless of the business or the rating assigned to it, there is a chance that the loan will fail. The Default and Bad debt rate indicate the past performance of similar loans, which you can take into account when lending.

About the risk - indicators

The second major change to the listing profile is the new addition of ‘Key Risk Indicators’. This section will highlight some of the key risks that we may have identified during our initial underwriting and screening process.

You can view a general description about each of the indicators by hovering over the indicator with your mouse. These indicators are made visible to help you in your lending decision by a) making you aware of risks you may have missed b) allowing you to investigate further and ask relevant questions. The key risks displayed are not necessarily the only risks associated with the business, simply those that we have identified.

Key Risk - Indicators - Hover

What should you do with the information?

Where key risks have been highlighted on a loan, this does not necessarily mean that you should not lend to the business, all lending carries risks.

You should use this information to help further your own analysis of the business, use it to ask your own questions of the business or use it to rule out the business as a loan for you. All loans that are listed on the platform have been through an initial assessment by ourselves and have met our standard lending criteria and have been deemed good enough to list on the platform for your further consideration. We provide lenders with a variety of lending opportunities to suite the breadth of different lenders on the platform, a loan listed on the marketplace is not an indication of a ‘safe loan’, it represents an opportunity for you to consider.

Secondary Market


All new loans listed on the primary market have been updated to include the new risks. We’re currently going through the secondary market and updating each loan profile, so that the key risk indicators will be visible on all loans that have already been funded, helping you make better secondary market purchases.

13th Jul, 2017

Preparing to Take a Business Loan

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” ― Abraham Lincoln

All businesses, at one time or another, will likely need to raise finance to grow or fill in a temporary gap in cash flow. Raising finance is easiest done by taking some time to first prepare both yourself and your business. Following some pointers and planning ahead can save you both time and money – and probably a lot of headaches…

06th Jul, 2017

Voluntary Arrangements

rebsoc-footerAs part of our service to our lenders, we undertake recovery action and legal enforcement on defaulted loan accounts. This is done on your behalf with the intention of recovering your invested funds. At certain times during this recovery process, we endeavour to give lenders a role to shape our recovery action and have their say in the acceptance or rejection of any repayment offers we may receive.

Such occasions include the submission of an Individual Voluntary Arrangement (IVA) or Company Voluntary Arrangement (CVA). This blog post will look a little closer at both instruments and discuss what lenders may want to look for in assessing whether those arrangements may be in their interests.

31st May, 2017

Make P2P Lending Work For You

Apply-for-a-loanWhether you are new to peer-to-business lending or are a seasoned professional, you should regularly consider whether your lending strategy is working for you. We’ve put together a short list of things you should consider as a peer to business lender not only on rebuidlingsociety.com, but across other platforms too?

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.

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.

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.

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

07th Nov, 2016

Our Recoveries Arsenal

Save money and finance for banking conceptAny investment involves risks. Whilst we pride ourselves on our ability to minimise the possibility of the borrower not repaying through our careful selection of businesses that meet our lending criteria and our proactive approach to credit control, there will unfortunately always be occasions where a business will fail and cannot repay capital and interest as agreed.

In this situation, it becomes necessary to commence our legal enforcement process to enforce the security offered by the borrower to secure the loan. Whilst this is not an option we take lightly, we are confident that our security requirements and our close working relationship with credit control agents, debt recoveries experts and in-house and external legal agents, we are well prepared to utilise the many tools at our disposal to recover the debt.

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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