Institutional Lenders

Institutional lenders can capitalise on the growing peer-to-peer lending market by buying a portfolio to meet your needs.

At present, offers some the best gross returns on the peer-to-business lending market, according to

Each loan is backed with the minimum of a director’s guarantee and in many cases with asset security, either a residential property or the business’ assets. All our loan data is available on request with an overview here.

We recognise that having an exit strategy is important, liquidity is strong on our secondary market. Loans re-sold at par or just above are typically sold within 1-3 days.

On current volumes, we can place £500,000 a month spread over 40 separate loans. As loan repayments are made, further portfolio diversification occurs as new loans are created.

We’re also innovators. We help others establish platforms using our proven technology and can introduce institutional lenders to our partners or build a platform for market entry.

Finally, we don’t charge a management fee to individual lenders or institutions.

If you’re an institutional lender and would like to discuss lending opportunities through, please contact us

The Peer-to-Business Lending Opportunity

rebuildingsociety was established in 2012 to solve the twin problems of poor access to credit for small businesses and below-inflation returns for retail lenders and savers.

What started as a small-scale industry has evolved into a new asset class that brings the lender one step closer to the investment, resulting in excellent gross returns, the ability to pick and choose loans and the flexibility to acquire and exit positions quickly and easily without prohibitive fees.

Peer-to-business (p2b) lending is growing exponentially. In May 2014 it passed £1.5bn in the UK. The last £500m of that business was done in just five months. It’s a growth curve that demands attention.

In the US, institutional funding now accounts for almost half of all funds in the peer-to-peer market. In fact, interest is so strong that loan securitisations are now starting to take place. Credit profiles in the US are typically more diverse and p2p is used to clear credit card debt, so APRs can be as high as 25%, resulting in excellent returns for lenders.

In the UK to date, personal loans (p2p) has been focused on super-prime borrowers and as such, returns are typically 4-7%. The p2b market however, deals in APRs more typical for institutions, with returns for lenders typically in the 8-19% bracket.


Peer-to-business lending offers average gross annual returns of 15%+. You’ll be providing growth finance to businesses from all sectors and geographical locations of the UK SME market.

You have the option to manually support businesses by bidding on their auctions, but what would be more practical for the institutional lenders is our Portfolio Builder product, which automatically allocates capital to businesses that meet your pre-configured criteria. As your monthly capital and interest repayments are processed, you can compound your interest. In short, this option supports a regular monthly funding line to rebuildingsociety.

Furthermore, you’ll be able to instantly acquire a diverse portfolio of loans from already completed loans. We provide performance data and default estimates to help you gauge your gross return and can advise on the optimum time to purchase micro loans, as all interest accrued in a month is paid to the holder at the time the repayment is made, which can further improve gross returns.

Our Underwriting Process

Every loan we review goes through the same underwriting process and all the business’ performance numbers input into our calculation are publicly available from the figures published on the borrower’s loan profile and from Experian, which provides a third-party credit score.

We use a combination of management accounts and filed accounts to measure loan affordability and the overall health of the business using accountancy formulas, such as EBITDA. This generates a score that falls into A, B or C categories. Any application that doesn’t meet the minimum C requirements is rejected.

The type of loan security offered by the borrower does not impact our risk grading because this is an affordability score based on the health of the business. However, buyers can filter loans to exclude those without asset security.

Current & Future Volumes

The funding requests we receive are increasing every month as the strength of our relationships with businesses and commercial finance brokers improve.

Approved applications in 2013: £2.25m

Approved applications in Jan – May 2014: £3m

Forecast monthly volumes by December 2014: £2.5m

We are turning away applications where lender appetite is currently insufficient. Were significant funding lines to emerge, we could take on more deals and larger secured loans.

Loan Security

Borrowers are required to offer security on our loans.

For loans up to £50,000 this can be a personal guarantee. For loans above £50,000 an asset must be offered by the borrower. When borrowers offer a personal guarantee, we ask them to fill out a Statement of Assets, Liabilities, Income and Expenditure (SALIE). This is signed as true by the borrower who receives independent legal advice.

When borrowers offer a charge on a residential or commercial property, we instruct solicitors to carry out checks on the title register to ensure the person offering the security owns the property. We also require the most recent mortgage statement and an independent valuation to estimate the loan to value ratio of the asset. If all of this information is to our satisfaction we will register a legal charge on the property on completion of the loan.

When borrowers offer a charge on a named business asset, such as a piece of machinery, we require an independent valuation from the manufacturer and an estimate of the likely resale value of the asset. We also need the asset to be removed from any existing asset debenture that may be in place.

When borrowers offer an all-asset debenture as security, we check that there are no other debentures in place, which are registered at Companies House. This entitles to become the primary creditor, should the business default on its loan and liquidators appointed to repay creditors through a sale of the business assets.

Administration and Charges

rebuildingsociety is responsible for all your loan administration, including debt recovery, unless you specifically tell us not to. When you buy loans through us, you’re buying the return only. There is no IT boarding project – these loans stay with us for their lifetime.

At the moment we do not charge any fees to lenders or institutions for using our service. In fact, we offer 0.5% cashback on all pledged funds of up to £10k, with further incentives available after that.

There is a sale fee of 0.5% for lenders using the secondary market, but we could waive this for future options, should a line with significant volumes of funds be agreed.


Lenders wanting to use third party applications to manage their funds will need to provide their API key which is available once you have registered and logged in.
You must log in to see your api key.

API documentation is available here.

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