We believe you should be rewarded for supporting your business
Back your loan with security and we'll reduce your interest rate
When you borrow through rebuildingsociety.com your loan is funded by a community of individual lenders, all lending varying amounts at different rates of interest.
When you apply for a business loan through rebuildingsociety.com our credit risk team will assess your application and assign your business a 'risk rating' from A+ to C. The bandings will set the upper limit at which our community of lenders can lend to you at. A+ rated loans start at 11%, A's at 14%, B’s at 17% and C’s at 20%.
We reward you for backing your business loan with security. So the better the form of security you can put up, the better your final rate of interest will be. It could reduce your rate by up to 5%!
All loans must be accompanied by a minimum of a personal guarantee, however you can offer a wide variety of security to support your loan.
We’ve assigned a nominal value to the different types of security you can offer, making some security ‘more valuable’ than others. For example a 1st charge on a property will be deemed a more valuable form of security than a company debenture, and as such they will be rewarded with a lower starting interest rate.
The more security added, and the better the equity in the security, the more the starting rate will be reduced*, as the security added works in a cumulative way linked to the loan to value (LTV) ratio.
The security we can accept from a borrower is ranked in priority below.
- 1st Charge Commercial Property
- 1st Charge Non Residential Property
- 2nd Charge Commercial Property
- 2nd Charge Non Residential Property
- 1st Charge Residential Property
- Fixed Asset Debenture
- 2nd Charge Residential Property
- All Assets Fixed and Floating Debenture
- Corporate Guarantee
*Personal Guarantee’s do not qualify for a reduction in the interest rate as this is a mandatory requirement for all loans.
Benefits of Offering Security
Reduced rate of interest- Pay up to 5% less
Demonstrate confidence in your business
Build stronger rapport with lenders
Join the Crowd and Lend to Your Business
Did you know you can enjoy tax-free interest returns by lending to businesses?
If you're planning on matching any finance raised through the platform or contributing to your business by way of a director's loan, you can save tax by using your ISA allowance to lend to your business. The Innovative Finance ISA (IFISA) allows anyone lending to businesses via P2P lending platforms, to apply their ISA tax wrapper to the interest earnings received. This means you can earn tax-free returns by lending to your business.
We have hundreds of lenders investing through their IFISA. Why not join them and make your business work harder for you.
5% reduction in interest rate
MSD applied for a £25,000 loan to assist in the implement of their growth plan, by funding their marketing and PR efforts.
Final Rate 7.93%
Security offered :
- All Assets Debenture
- Director's Guarantee
5% reduction in final rate
This firm applied for a £250,000 loan to improve long-term cash flow allowing the firm complete a number of new renovation projects. Rated as a 'C' their starting rate would have been 20%.
Final Rate 15.91%
Security offered :
- 2 Second charges over investment properties
- 2 director's gurantees