Business Finance

on the rebuildingsociety.com blog

13th Dec, 2018

Our Latest Business Borrower – Kadco Fashion

We caught up with Samir from Kadco Fashion & Textiles to find out more about his business and why he chose to return to the rebuildingsociety.com crowd to raise further finance to grow his Yorkshire based business.
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10th Dec, 2018

Lender’s Review of rebuildingsociety.com

Why Invest in Peer to Peer Lending?

Brian has chosen peer to peer lending as part of his investment portfolio as he enjoys the fact that crowdfunding and P2P lending directly connects lenders with the funders, cutting out the middleman.

Brian enjoys engaging with the business owners and seeing how he can have a direct impact on the success and growth of many small businesses.

Why rebuildingsociety.com?

Brian says that he enjoys lending via rebuildingsociety because of the platform’s ethos and dedication to supporting local businesses and developing local economies particularly outside of London, an ethos which he shares and which he has followed in his own business ventures.

Rebuildingsociety.com was founded with the intention of opening finance to businesses that had been excluded from traditional means of finance and to offer more than just a financial transaction, by ensuring that through the finance the business was also able to gain access to a wide range of lenders who are able to advise and support the business in the long term.

The ability for lenders to pick and choose their investments and continue to engage with the borrowers is a key reason Brian has continued to lend via rebuildingsociety.com, as opposed to other platforms that have become more ‘opaque’ in the way lenders invest.

As well as his rate of return, Brian also cites the openness and accessibility of the rebuildingsociety.com team as a factor for his continued investment via rebuildingsociety.com.

How does it compare to other platforms?

Investing across a number of crowdfunding and Peer-to-peer lending platforms, Brian, says as a ‘non-techie’ he has found the platform easy to use and understand.

He has found the blogs and information available to lenders on rebuildingsociety.com ‘excellent’ and very useful in helping him to understand how to use the platform, learn more about the businesses and get tips on lending in general.

Much of the information Brian refers to is available in our Lender Library.

Advice to new lenders?

Having been an active lender for over 4 years on rebuildingsociety.com. Brian says lenders should:

Read and Review

Brian says lenders should always make sure that they read up and carefully look into the platform that they are lending through.

Look at the trading history of the platform, how long have they been around, what is their net return, what is the ethos of the platform and what is the investment structure or the deals on the platform.

Knowing more about the platform and ensuring that you understand how it works is fundamental to ensuring the long-term success of your investments via P2P.

Do Your research

When investing manually, Brian says it’s crucial that lenders do the research on the businesses they are thinking of investing in. Reviewing the information provided by the platform as well as publicly available information is important to make good lending decisions.

Start small – Diversify

Brian says that lenders that are new to any platform should ‘start small’ and look to build a well-diversified portfolio, by lending across a range of sectors, regions and business types. As a lender gets more comfortable with the lending process and the platform then they can consider lending larger amounts according to the experience they have gained.
If in doubt ask

This applies to both asking questions of the borrowers as well as the platform’s team. On rebuildingsociety.com lenders are given the opportunity to directly ask questions of the borrower through the Discussion forums of each loan. This allows lenders to ensure they understand who and what they are lending for and allows them also to build a rapport with the borrower.

Brian also says that lenders should ask not to be shy to engage with the rebuildingsociety.com team, who he has found ‘very helpful and accessible’ and ‘has found the guidance that they give very easy to understand’.

 

rebuildingsociety.com is authorised and regulated by the Financial Conduct Authority and has been operating as a peer-to-peer lending platform for over six years, making it one of the longest standing P2P platforms in the UK. rebuildingsociety.com prides itself on the level of transparency offered to lenders and the wealth of information and educational material available to assist lenders and borrowers throughout their engagement with the platform. 

Transparency helps lenders assess the risk and make better-informed decisions if you would like to find out more about the risks involved in lending on our platform, visit our risks page.


03rd Dec, 2018

Scale Up Programme to Accelerate Growth of rebuildingsociety.com

Rebuildingsociety.com is proud to have been selected to be part of the 2019 Barclays Scale Up programme, run by Barclays in collaboration with Cambridge Judge Business School. The innovative programme aims to enhance the performance and competitiveness of high-potential businesses with growth appetite as well as growth potential that are deemed to be engines of growth in the UK. (more…)


26th Nov, 2018

Advice to Borrowers – From a Lender

Tips for Raising P2P Finance

Brian Johnson has been a regular lender on rebuildingsociety.com since 2014, supporting many UK SMEs in their growth aspirations along the way. Brian also has many years’ experience of managing and running his own businesses, so understands the difficulties businesses encounter in raising finance and has seen how businesses can use P2P finance to their advantage and how rebuildingsociety.com facilitates more than just a business loan.

We met up with Brian to find out what tips he would give businesses who are looking to get a business loan through rebuildingsociety.com.
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06th Nov, 2018

Festive Preparation for Your Business

With the Bonfire smoke clearing and the sound of fireworks still ringing, in our ears many people now turn to Christmas preparation and celebrations. Whilst the upcoming festive season brings with it plenty of fun and reasons for celebrations, it is often a challenging time for business owners, particularly if planning hasn’t been done to ensure business continues as normal through this disruptive period.

We’ve put together a list of tips to help you ensure that you make the necessary arrangements to avoid disruption to service or unexpected issues during the festive period and to ensure that you set your business up for the best possible start to 2019!
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29th Oct, 2018

Changes to Our Auto Bidding Tool – BidPal

We’re excited to announce the most recent changes to our auto bidding tool, BidPal.For years lenders have used BidPal to help them manage their Rebs lending portfolio, helping them invest in a wide range of loans whilst saving them valuable time, and now we’ve improved it to make managing your lending account even easier and to allow you to make more tailored auto lending decisions.

What is BidPal?

BidPal is our automated lending tool, that auto applies bids on behalf of lenders as and when a new loan is listed that meets their pre-set lending criteria. This means lenders that have set up BidPal do not need to log in each time a new loan is listed to make a bid.

What’s New?

 

 

Inclusion and Exclusion Options

Previously the preferences available for lenders to set were limited to industry sector and risk rating. We’ve now extended the options available to lenders, allowing you to make more defined bidding preferences to suit your lending appetite.

You will now be able to choose to include or exclude certain regions that you do or do not want to lend to.

Bid or Buy

The new BidPal will also include an option to auto-buy loans on the Secondary Marketplace as well as bid on the Primary Marketplace. Lenders may choose to set one or the other or both auto-bidding options.

Where a lender chooses to buy micro loans from the Secondary Marketplace, they will be buying micro loans that other lenders are selling on. These are loans that have already been funded via the Primary Marketplace. When loan parts become available that match your buying preferences and where you have sufficient Available Balance, these micro loans will be automatically bought and added to your loan portfolio.

We’ve also introduced new rules that  allows users more flexibility over their BidPal criteria. Over time, we hope to further expand on the data options that a lender can set for their lending rules.

Currently lenders can configure the settings such as:

  • Whether you want to exclude / include loans where the loan is behind on repayments
  • Targeting the purchase of micro loans in a specific business
  • Whether you want to exclude / include loans being sold at certain premiums / discounts by other lenders
  • Choosing the risk ratings you want to buy or avoid.

The buy logic is triggered when a user sells their microloan(s), there is now a ‘clearing process’ to check if the microloan meets the buy requirements of another user and where it does, the purchase will occur instantly. This feature allows lenders to grow a diversified portfolio quickly while simultaneously bringing an increase in liquidity to the platform. When selling microloans, you may notice a message “1 of 1 microloans sold.” When you see this, another lender’s BidPal Buy function has purchased your microloan automatically.

 

 

What BidPal Does Not Do…

BidPal does not guarantee that all your funds will always be lent out, that you will never encounter a default or that your account will deliver a set interest rate.

Available funds are only lent out to a pre-set proportion of your lending portfolio, you can alter all this in the settings.

If your funds are auto bid on a loan, there is no guarantee that you will not be outbid, if you are outbid you will be alerted (according to your notification settings), and will be able to login and rebid should you choose.

Lending to businesses carries the risk of default. If a business fails to repay a loan you could lose all or part of your capital. Therefore you should carefully consider how best to mitigate these risks, consider perhaps divesting via the secondary market or reviewing the performance of the various loan risk ratings and reviewing your Bidpal settings regularly.

Whilst BidPal will auto bid at the highest rate available on a loan, it does not guarantee a set return on any single loan or on your portfolio.

Managing your Lending Portfolio

As a lender, lending to businesses, you should be aware of the risks involved in lending. Understanding the risks is the first step to building a strong loan investment portfolio through careful management.

Whilst BidPal reduces the need to log in as regularly to ensure that your funds are working for you, lenders should still ensure that they are monitoring their lending account to ensure that it is performing to their expectations and to regularly review their investment strategy depending on the performance of their investments.

Find out more about managing your lending portfolio on our platform by reading our helpful articles in the Lender Library.
For more information on BidPal please look at our FAQs or email support@rebuildingsociety.com.

01st Oct, 2018

Inside the opportunity

We took some time to speak to Montgomery Food International about their business and their plans going forward.

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17th May, 2018

Promoting Gender Diversity – Women In Finance Update

Rebuildingsociety.com has always had the mission of supporting UK businesses through the wider provision of finance to those that need it. Recently we extended our mission to publicly pushing for gender diversity in all businesses but specifically those in financial services.

In March 2018, we signed the HM Treasury Women in Finance Charter, marking our commitment to improving gender diversity in our industry, through supporting the progression of women in senior roles within our organisation.

We have recently re-affirmed our commitment to improving gender diversity within our team through the appointment of Non-Executive Investment Director, Georgina Mitchell. This sees 44% of Rebuildingsociety.com’s team as being female and 40% of its Board and Non-Executive team also being female.

We’re dedicated to continually improving gender diversity within our team whilst improving work-life balance for all our staff. As a business with technology at our core we’ve invested significantly in IT and communication systems that allows staff to work remotely if required, with many working securely from home in order to honour family commitments.

CEO Dan Rajkumar says ‘We’re committed to meeting our objectives under the Women in Finance Charter. By creating a flexible work environment with the technology to support individuals that have other commitments we’re well positioned to attract the talent of all people that want to further their career and maintain work / life balance. Fostering gender diversity has been core since the start, rather than a means to improving overall public perception of the firm.’

Rebuildingsociety.com is also pushing for greater gender diversity within associated business partners and professional networks. As a founding firm of FinTech North, rebuildingsociety.com has specifically sought to balance the gender gap of speakers at FinTech North’s monthly and annual events as well as engaging a more diverse audience. This year’s FinTech North event in Leeds saw a noticeably higher proportion of female attendees to previous years as mentioned by Susan Sutherland of Fiserv.

As a firm we plan to continue promoting gender diversity within our workplace by improving the percentage of women in senior roles and on the board to 50% by 2020.

If you would like to become part of our team why not apply for one of our roles now.


15th May, 2018

Yorkshire Post Speak with Our NED Investment Director About Working as a Non-Executive Director

A recent article in the Yorkshire Post, featured Georgina Mitchell, our NED Investment Director and explored how one becomes a Non-executive Director and what the job entails.

Georgina, previously of Redmayne-Bentley, completed the Financial Times Non-Executive Director Diploma in her journey to becoming a NED.

In the article, Georgina discusses her passion for business and her journey to becoming a non-exec at rebuildingsociety.com, investUp and her plans to launch a commercial coaching group and peer board with Uspire Network. 

Through her engagement with Yorkshire businesses, Georgina has become quite involved within the FinTech circles, having recently delivered a talk at the annual FinTech North Conference in Leeds and will be delivering a further talk at the inaugural FinTech North Manchester event on the 22nd May.

 


08th Jul, 2015

ProVision target Social Buildings on rebuildingsociety

Construction Project Management business is requesting to borrow £100,000 over 60 months.

If people invest in Provision UK Limited, “[the] hope is that they will know they are making a tangible difference that will impact many people for the better,” explains Nigel Williams, a consultant to the company.

ProVision’s team of four directors and 30 staff provides construction project management to churches and charitable organizations. The business is entirely driven by referrals from satisfied customers who have seen ProVision successfully help push their project to completion. With rebuildingsociety lenders’ help, ProVision aim to increase their working capital and pay off credit card debt in hopes that the loan repayment will be a lower monthly burden. Without the loan, the company’s growth may slow, Williams said.

A Unique Model

ProVision uses their “traffic light model” to mitigate risk and ensure project success. The detailed process brings forward some elements of work in the project that will flag any significant concerns which would affect its progress. These elements include land boundaries, title deed issues, restrictive covenants, legal and governance concerns and financial limitations.

“All embers of the management Team have over 20 years experience each in this market – either as church members, leaders, trustees or assistance with building projects/design,” Williams said. “This understanding of the challenges facing many church and community leaders/trustees who have little experience on bringing a project to a place of reality has been invaluable.”

Social Impact

Because ProVision works with charities and churches, its work advances the support and development a community needs to thrive. That has been attractive to investors in the past, Williams says.

“The Directors and staff believe in what they are doing and have a heart to impact all areas of society for good, regardless of background, faith, gender, and so on. They also believe by working with clients, that the benefits and additional profits that projects may generate means the funds can stay within the client’s control and therefore within their local communities.”

The loan’s risk is mitigated in part because the directors have primarily invested their own money into the project so there is no other bank debt, Williams says. The auction has so far met 40 percent of its £100,000 goal and just received a two-week extension.

You can read ProVision’s loan profile here.


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