Peer-to-peer lending, direct lending, and crowdfunding, is in the headlines right now because of the benefits it offers.
We perform four key functions:
- Arrange loan agreements between borrowers and lenders under ammendment 36H of the Financial Services Act
- Hold the security on trust, on behalf of lenders
- Clear all transactions through a seggregated client accont
- Enforce the security for defaulted loans on behalf of lenders
By using an online platform to administer funding opportunities online, everyone gets a better deal.
Against a national backdrop of low-interest rates for savings and a business banking culture that is under pressure from the Government to lend more, it’s hardly surprising that investors and business borrowers are looking for alternatives.
Don’t take our word for it! Listen to Brian Johnson as he shares his experiences:
We pass on 100% of the rewards
It is possible to lend at interest rates of up to 20% on our platform because we do not take a margin, so 100% of the interest paid by borrowers is relayed to the lenders. While the rewards are high, sometimes the risks can also be significant, you should not expect every loan to make every repayment on time. After 5 years, our risk-adjusted rate of return is 8.9% per annum after defaults, fees and bad debt. Our past performance is good, but no guarantee of future performance.
With > 5 years of history, you can trust us to deliver on our promises
We work hard to find and approve opportunities for you to fund. Most perform well and repay their loan with interest, but not every business is successful. We work hard with collaborative entrepreneurs to keep them performing, but the truth is that some businesses will fail.
Registration is free and quick. Fill in your personal details and then deposit funds into your online account, using the reference provided when you click ‘Add Funds’. Most deposits are reconciled the same day.
Review Potential Investments
Whether you decide to receive suggestions via our automatic bidding system or choose them yourself, rebuildingsociety will provide you with some information to help you evaluate potential investments. Review a company’s financial information, view questions from other members and engage directly to ask your own.
Offer to Lend
Once you’ve gathered enough information on a potential investment, just select the amount you wish to lend, pick an interest rate you feel reflects the risk in the investment and click ‘bid’, or ‘buy’ on the secondary market.
BEGINNER’S TIP: You may want to observe the rate that other lenders are offering, as the highest interest rate offers may be outbid once a funding requirement is fully offered.
We understand that some lenders may not have time to read every opportunity in detail, so we have introduced some automatic bidding tools that make it very easy to set your lending preferences. This allows the system to understand your appetite for risk and to participate in loans that meet your criteria.
We try to make the opportunities interesting and engaging because we want lenders to ‘shop’ for their investment opportunities and to get to know the companies they are supporting.
We’ve written many articles, many of which have been published in the press. Here are some of the editor’s picks for people new to the industry.