Peer-to-Business Lending

on the rebuildingsociety.com blog

27th Sep, 2017

Daniel Rajkumar to Speak at Crowdfunding Convention

rebuildingsociety.com founder and Managing Director, Daniel Rajkumar, will speak at next month’s 6th ECN Crowdfunding Convention in Lithuania. The event, which will focus on New Technologies for Accessing Finance, is scheduled to take place at the Sapiegos Tech Park in Vilnius on the 19th and 20th October.

Dan-RajkumarDaniel will talk about launching a P2P lending platform on a budget, citing his experience when he founded rebuildingsociety.com. He will be explaining some of the challenges a business can face, commenting on technical considerations and advising on how to devise and implement marketing strategies while on a budget. “I’m very much looking forward to the event, it will be my first trip to Lithuania and I’m always keen to connect with my ECN friends and find out about their successes and challenges,” Daniel commented. “Conventions like this are a great way of speaking to other industry players, hearing from experts and meeting likeminded professionals,” he continued.

The European Crowdfunding Network was founded in 2011 with the aim of creating a professional network that would work towards promoting adequate transparency, regulation and governance. Incorporated as an international not-for-profit organisation in 2013, the network facilitates a combined voice in policy discussion and public opinion building.

Find out more about the event on the official ECN Crowdfunding Convention website.


10th Mar, 2016

Crowdfunding and P2P are Booming in the UK, Nesta Report Confirms

Alternative finance claimed 12 percent of small business lending in 2015, a sizable share of a rapidly changing market.

That’s according to a report titled ‘Pushing Boundaries’ by Nesta in collaboration with the University of Cambridge. This report is part of an annual series from the institutions that analyzes the alternative finance industry, including P2P lending and crowdfunding. Another key takeaway is that the sector grew 84 percent in 2015 and facilited £3.2 billion in loans, investments and donations — nearly doubling over 2014. More than 1 million people invested via online platforms in 2015, and 254,721 individuals, projects, not-for- profits and businesses raised finance via online alternative finance models.

And that rapid growth seems poised to continue, especially as banks and other financial institutions get in on the action. Institutions are increasing their stake in alternative finance, as Nesta’s report demonstrates.

And, institutional investors are taking the online marketplace more seriously. About 45 percent of all platforms reported institutional involvement. Donation-based and equity-based crowdfunding grew exponentially in 2015.

Of the total market, peer-to-peer business lending comprises £1.49 billion, almost doubling the amount lent in 2014. £881 million of that is in non-real estate lending projects, like rebuildingsociety.com. The peer-to-peer business market experienced an increase in automated lending and in secured loans.

The report projects that the alternative finance sector will grow to more than £5 billion in 2016.

“With increasing public and business awareness and the introduction of the Innovative Finance ISA, opportunities are abundant for the alternative finance industry in 2016 as well as challenges. From the peer-to-peer lending side, the challenges for 2016 are likely to be deal origination, credit risk modelling and underwriting. For equity-based crowdfunding, the challenges are not too dissimilar. The focus is likely to be on deal flow, due diligence and dealing with business failures as much as successes.”

Nesta’s report concisely demonstrates the sharp growth of various sectors of the alternative finance sector. As these industries continue to grow, we’re thankful for institutions like Nesta that keep tabs on industry growth and trends so we can make the rebuildingsociety community even better.


23rd Jun, 2015

Peer To Peer Lenders Need Not Fear “Shadow Banking” Risks

Attempts by some in the banking world to associate peer to peer lending with “shadow banking” simply don’t pass muster.

Shadow banking typically refers to hedge fund, private equity and other activities of the type that the International Monetary Fund says contributed to the economic crisis that began in 2007. As bank leaders try to paint peer to peer lending with that same brush, leaders in the P2P industry like Zopa founder Giles Andrew have been quick to distance themselves from shadow banking as a label and approach to finance.

“When Zopa became the first P2P platform to launch in 2005, we knew that persuading consumers to trust us with their cash was crucial to our business. This meant being a transparent and responsible lender from the start, extending credit to “super-prime” borrowers and building a risk function robust enough to withstand the seismic economic shocks that came along a few years late,” Andrew stated. “The activities of the P2P lender that I helped set up, Zopa, are as far from shadowy as the most diligent regulator could hope for. A founding principle of P2P lending is to ensure that platforms are open and transparent about lending.”

Likewise, rebuildingsociety.com endeavours to uphold the highest standards of financial integrity, user trust and transparency.

“It’s great that people are beginning to think of the peer to peer industry as trustworthy enough to be considered an alternative to the banks, but the differences between the two models are noteworthy,” said Adam Knott, rebuildingsociety.com’s Digital Marketing Manager. “rebuildingsociety.com will always strive to offer a fair and transparent service and a genuine choice for investors and borrowers alike.”

As the banking model is challenged by alternatives, it may continue to vilify those it views as competitors. However, good peer to peer lenders will continue to pursue a promising financial model with a spirit of fairness and honesty.


12th Feb, 2015

Five reasons for getting a business loan through rebuildingsociety

We know we’re new. We’re also in a new industry and things are done a little differently to other finance providers.

Nick Newton and Rick Hyland are on hand to guide you through the process

But we still believe we’ve got a great product that is suitable for businesses of all sizes, sectors and locations across the UK. Here are some of our best features:

1. We’ll listen to you and guide you through the application process. Our business development team (Rick Hyland and Nick Newton) will be on hand to take your calls and emails to keep you posted on progress, while our underwriting and legal team will work hard to get you through the loan preparation and completion stage with minimal fuss. After all, you’ve got a business to run.

2. We’ll be realistic about your progress. If we don’t think we can help you this time round, we’ll tell you ASAP. But we’ll try to point you to places that can help as that’s part of our ethos of building lasting relationships. When we can help you in the future, it would be great to do so.

3. We’ll tell your story. When you’re looking to tell potential investors about your company history to help them gauge whether to lend to you, we’re on hand to write features about the business to get your character across. Similarly, when it finishes and you’ve got a good news story about securing a loan for growth, we’ll help you write that and distribute it.

(more…)


28th Jan, 2015

Business Confidence at a Three-Year High – Now is the Time to Capitalise

As the first month of 2015 draws to a close, UK businesses are increasingly optimistic about the year ahead. A handful of surveys have pointed towards confidence in the British economy stemming from improving labour markets and falling inflation, indicative of a positive economic outlook. Here’s a summary of why business owners should look favourably on 2015 and gear up for growth.

Increasing sales and profits

A poll by accountancy group Grant Thornton revealed the UK was one of the most optimistic economies in the final quarter of 2014, with 68 percent of executives admitting confidence for the coming year. A survey of 1,500 businesses by Lloyds Banking Group reported that 43 percent of companies expect an increase in sales, orders and profits in the first half of 2015. Confidence has been reinforced by news that the UK’s economy grew by 2.6 percent in 2014, the fastest pace since 2007.  (more…)


05th Jan, 2015

Our Highlights – 2014

2014 was a big year for rebuildingsociety and the markets we operate in – here are a few of our highlights!

January – Our first Roadshow event in Leeds. 150 friends, members, future members, advisers and fellow alternative finance entrepreneurs joined us for a day of insightful presentations, networking and raising awareness of this exciting new sector. We published recorded content from the day throughout the next months, including Viv Parry, owner of Exquisite Handmade Cakes on how rebuildingsociety’s lenders propelled her business forward.

(more…)


26th Aug, 2014

London Fast Becoming the Global Crowdfunding Capital

rebuildingsociety does crowdlending or peer-to-business lending, but we like to keep an eye on our sister industry, crowdfunding.

In August George Osborne declared at the Innovate Finance initiative that ‘we stand at the dawn of a new era’. He was referring to the alternative finance space, which is blazing a trail across the world, but nowhere is that more concentrated than London, according to research from The Crowdfunding Centre.

At a recent seminar, some very impressive statistics about the growth of the start-up, rewards and equity crowdfunding space were revealed.

The Crowdfunding Centre takes data from 120,000 crowdfunds across the world, adding approximately 500 new ones to its data every day.

As you might expect, the US leads the way in the number of crowdfunds, and these are concentrated on the coasts, with Texas bucking that trend and placing highly in the leading US states. However, earlier this month, London originated 248 crowdfunds. The city in second place was Los Angeles with 158.

(more…)


29th Jul, 2014

EAST LONDON PUB SCENE STAR RISING

Rob Star cut his teeth in the 90s rave scene, organising nights for legendary promoter, Universe among others. Ensuring that people have a good time is in his DNA, so it’s no surprise to see his Electric Star venture going from strength to strength.

Rob Star (right) with Nick Moules of rebuildingsociety

His fourth pub, The Jackdaw and Star in Homerton, East London, is set to open later this summer and the extensive refurbishment to keep the pub in tune with the Electric Star brand has been funded by rebuildingsociety’s lenders to the tune of £43,000.

Featuring a copper bar and chandeliers to give it a high end look and feel, The Jackdaw and Star will join The Star of Bethnal Green, The Star of Kings and The Star at Hackney Downs in the Electric Star portfolio.

Rob concentrates on providing an experience for customers. He acknowledges the impact of economic pressure on their spending power, but believes if someone truly wants to go to the pub for an evening they will find the money.

What has definitely changed though is people viewing a trip to the pub as a treat, so Rob has adapted. He offers cask ales and franchises his kitchens out to people passionate about their food, typically chefs with a pop-up restaurant or plans to establish one. It gives them a low barrier to entry and chefs typically stay for 3-6 months, ensuring a healthy churn in the style of food available to customers.

(more…)


25th Jun, 2014

Preparing Your Business For Any Eventuality

Dan Rajkumar, MD of rebuildingsociety shares some tips for business owners picked up during his 12 years of running businesses.

Sometimes opportunity comes knocking at the funniest of times…

We know that 4 out of 5 businesses are not looking to raise finance at any given time, but if a competitor knocks on your door tomorrow asking you to buy them out, or if you spot a great opportunity for growth, then it is best to be prepared. After all, they say the definition of luck is when preparation meets opportunity, so here are a few hints and good practice tips help you to get lucky…

As someone running a growing business, you need to know a few things you can do to strengthen your credit risk profile now, so that when you do come to borrow funds, your business is best placed to be seen as low-risk, ensuring you get better interest rates.

It will take you 15 minutes to fix a few things that could save you thousands later on… (more…)


03rd Jun, 2014

May Lending Review

May was our busiest month in terms of loans completed, with 11 flying off the shelves, with £382,500 advanced, more than double that of April. It also means we’ve already done more loans in those five months than in the whole of 2013.

Loan size was smaller than the average throughout 2014, which has pulled the average size down further. Our average in 2014 is now £43,006, £10,000 less than the average size in 2013.

This might indicate investor preferences for lots of smaller loans and we’re in a good place to test that theory in June with large requests from GRA Project Management, which has already drawn down two loans with us in the past, and Old Hall Inn and Cottages Ltd.


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