Funding

on the rebuildingsociety.com blog

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.


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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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.

14th Sep, 2017

rebuildingsociety’s Rick Hyland to Speak at Seminar

October will be a busy month for rebuildingsociety. Not only is Founder and Managing Director, Daniel Rajkumar travelling to Lithuania to present at the 6th ECN Crowdfunding Convention; Business Development Manager, Rick Hyland, is also speaking at an industry seminar titled Alternative Sources of Funding – what’s best for your business?.

Rick will represent rebuildingsociety.com at the breakfast seminar scheduled to be held on October 17th at the Ward Hadaway Leeds office in Wellington Place. Ward Hadaway, one of the top 100 law firms in the UK, has a strong presence in the north, with offices in Leeds, Manchester and Newcastle.

The seminar, Alternative Sources of Funding – what’s best for your business?, will focus on the funding labyrinth that is the modern alternative finance world, analysing the positive and negative aspects of peer-to-peer lending, peer-to-business funding and angel investments.

The event begins with breakfast at 8.30am, followed by presentations from four industry professionals; Rick will be joined by representatives from Business Enterprise Fund, Angel Groups and Assetz Capital. A networking session at 10.00am will draw the event to a close.

To find out more and to sign up for a place at the event, please visit the dedicated event page.


23rd Jan, 2013

What would funding do for your business?

The Funding for Lending scheme is reported to be fuelling a resurgence in the housing market, but there are doubts over its effectiveness in getting funds to businesses.

Many would say loosening controls over lending to individuals and businesses got us into this mess in the first place, but to rule out profitable businesses with dynamic leaders looking to grow, lenders are surely missing the opportunity to back a winner.

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27th Aug, 2012

Diversification Benefits Can be Realised with a Helping Hand from the Crowd

Finance out of reach for SME'sTesco’s announcement that it is going to offer mortgages is the latest move in a series of high-profile diversifications in the financial services market as organisations look to leverage the strength of their brand to kick-start another.

Unlike Tesco, which boasts piles of cash and an almost limitless credit facility, many businesses with plans to diversify their offering will face a familiar hurdle – finance.   (more…)


21st Aug, 2012

Yorkshire Post talks to rebuildingsociety.com

This week we were proud to be featured in the Yorkshire Post. Bernard Ginns, the paper’s Business Editor, interviewed our founder Daniel Rajkumar.

‘Funds website aims to cash in as firm favourite’
Published in Yorkshire Post on Monday 20 August 2012

A YOUNG entrepreneur from Leeds is launching a new crowdfunding website to offer better returns to savers and help small businesses access desperately needed finance.

The fund-raising has valued the pre-revenue company at more than £2.5m, he told the Yorkshire Post.
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30th Nov, 2011

Small Business Funding

Where do I go for small business funding?

So you’ve heard the news – the sky is falling and no one is lending to small businesses. It feels like the banks are using the current financial situation as an excuse to stop the rest of us moving forward. Well, we’re here to put a stop to that.

Welcome to rebuildingsociety – the home of small business funding.

rebuildingsociety is the premier online destination for peer-reviewed B2B investments. Our community includes some of Europe’s most influential business leaders. Using the community’s collective investment experience, you can make your money work harder and faster than ever before.

Complete your application online in just 20 minutes and within 5 working days, our key investors will assess and confirm your request.

So what are you waiting for? Jump on board the finance revolution and Join now for free!

The new solution for your small business funding woes!

rebuildingsociety – Discover, Invest, Reward. 


30th Nov, 2011

Grants for Small Businesses Still Exist?

Need a small business grant for your next big idea? Think again!

It is increasingly difficult for businesses to raise the necessary investment to get their big ideas off the ground. Banks are making the lives of business owners a nightmare by forcing them to jump through unimaginable hoops. If you’ve ever been asked to secure your house against your business in spite of that great business plan you spent hours crafting, you’ll understand our frustrations.

We think there’s a better way.

rebuildingsociety is the premier online destination for peer-reviewed B2B investments. Our community includes some of Europe’s most influential business leaders. Using the community’s collective investment experience you can make your money work harder and faster than ever before.

Complete your application online in just 20 minutes and within 5 working days our key investors will assess and confirm your request.

Easy! So why don’t you join now for free!

rebuildingsociety – Let’s get back to business


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