Peer-to-peer lending, or peer-to-business lending, is hogging the headlines in the finance section of the papers right now because of its common sense approach to lending and borrowing.
At the heart of p2p, or p2b as they are becoming known, is the notion that everyone could get 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.
Register for a rebuildingsociety account. Fill in your personal details and tell us as much as possible about your investment goals. Then deposit funds into your rebuildingsociety account using the reference provided when you click ‘Add Funds’. Most credits are reflected the same day.
2. Review Potential Investments
Whether you decide to receive suggestions via our automatic profiling 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.
3. 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.
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.
In recent months, there has been notable developments for the industry.
Firstly the Government’s decision to regulate the industry from April 2014 is a nod towards its rising importance in the consumer and commercial finance landscape.
And the Government has backed itself, by investing through two platforms via the British Business Bank. It is a fast and uncomplicated way of funding reaching businesses that need it and stimulating the UK’s economy.
It’s a market on the rise, with over £1bn lent to businesses and consumers so far.
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.