Micro Loans

on the rebuildingsociety.com blog

17th Sep, 2013

Are you a Flipper, Hoover or Holder?

When rebuildingsociety.com first began, we thought the auction would be the driver of the site. It has the excitement of watching loans fill up, competitive bidding and it produces all the good PR. But quite soon after we started, we realised that liquidity and choice were equally as important and for some people, more so. Underneath there is a determination to increase the flow of cash into Britain’s SMEs, but each investor has their unique way of earning a return. Here are a few different types of investors that we’ve started to characterise:

The Flipper


09th Aug, 2013

Changes to the Micro Loan Market and Fee Structure

From Monday 12 August at, holders of micro loans on rebuildingsociety.com will be given greater choice of the rates at which they can buy and sell micro loans as the parameters will be widened to offer a 5% premium and 5% discount option.

At the same time, the fee for trading micro loans will increase from 0.25% to 0.5%.

The management team decided against introducing an annual account management fee or a flat joining fee for lenders and this was considered to be the fairest way of introducing a modest rise to meet costs as the business prepares for regulation.

It will also finance increased marketing of the micro loan market to new lenders, further improving liquidity.

05th Mar, 2013

What is a Social Impact Bond?

At rebuildingsociety.com we believe strongly in the social benefits of peer-to-business lending as well as the returns offered to lenders, so an article that caught our eye in The Economist on 23 February was a story about private investors funding a scheme to help rough sleepers, with returns paid if targets are met.

In short, Social Impact Bonds (SIBs) pay investors returns as social objectives are achieved – so in the example given by the Economist, investors stand to gain a 6.5% return from the Greater London Authority if two charities that deal with homeless people perform well. Conversely, investors could lose everything if the organisation doing the work fails to meet targets.


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