Peer-to-Peer Lending

on the rebuildingsociety.com blog

The latest news in peer to peer lending, direct lending and marketplace lending from experienced professionals.

18th Mar, 2019

Is a Peer to Business Loan an Alternative to a Bridging Loan?

Bridging Finance is a type of short-term, high-cost finance that is secured on assets such as property and is often used as a short-term solution with the intention of refinancing to an alternative lower-cost, long-term provider.

Typically, bridging loans are offered for periods of 1-18 months at 1.5% per month (18% pa).  Most bridging loan companies have expensive early repayment charges if you want to redeem the loan early.

This type of funding has become increasingly popular and there are many P2P lenders that focus on bridging loans.

Peer to Peer business loans vary in structure and rates depending on the platform, so we’ll look at a typical rebuildingsociety.com business loan.

Our loans are offered for periods of 6-60 months, at rates from 6% to 20% per annum (0.5%-1.6% per month). We offer secured and unsecured loans* and support a variety of British businesses. Unique (as far as we know) to rebuildingsociety.com however, is that we reward borrowers for backing their own loans with meaningful security.

Well secured loans benefit from interest rate discounts

Where a borrower offers good security in support of their loan, we will offer them a starting rate discount on their loan, the better the security the better the starting rate. Typically, a C rated business with no security would have a starting rate of 20% p.a however if they offered us strong security, they could benefit from a starting rate discount of up to 5%. An A+ rated business would usually have an unsecured rate of 10% but might, with good security benefit from a starting rate of just 6%p.a which is significantly cheaper than most bridging finance options. Find out More about our interest rate discounts here.

  Bridging Loan P2P Loan
Loan Term 1-18 months 6-60 months
Repayment Terms End of term Monthly Capital and Interest
Interest Rates 18% p.a 6-20% p.a
Early Redemption FeeYes No
Time to Raise Finance 5-14 days 7-20 days

What are the benefits of a rebuildingsociety.com business loan?

  1. There are no early repayment fees.
  2. We won’t call in the loan early
  3. You’re borrowing from a community of people that want to see you succeed.

Find out More

If you’d like to find out more about using rebuildingsociety.com as a cheaper bridging finance option, simply fill out our quick application process here and one of our team will give you a call or give us a call to discuss your options further.


13th Mar, 2019

An expansive approach from Afterthought

It’s always interesting to connect with business people with an eye for opportunity. A few words with Doug from Afterthought…

Hi Doug, how would you describe your approach to business?

My background is primarily IT consulting. I spent about 18 years working in the US with small stints in Hong Kong. My jobs allowed me to travel extensively and I think that helped with some of the input on our gin and coffee flavours and designs. I’m fairly hands-on, making sure that standards and values are followed and have built a great team of around 35 people across all of the businesses that continue to make Afterthought a success.

You seem to have quite a range of businesses, from technology consultancy to coffee shops… what’s the thinking behind this?

We started out as and IT consulting firm and decided to diversify into other businesses, we spotted a coffee shop for sale and it’s been expanding ever since!

The Gin Story … how did that begin?

As for the gin, I started drinking it about 7 years ago and settled on Bombay Sapphire and orange juice. About 2 years ago I toured their distillery and thought to myself I can make this and add some flair to it.

What’s the market like for Gin these days? Seems to me it’s quite experimental, I’ve seen Sheffield Gin in a local wine bar. Are you looking to provide direct to drinkers, or to bars as well?

We are aiming for about 80% export markets as there are already quite a few local gins in the UK. So far we have created and released 4 gins including American, European and London dry gins. 

Do you need a license to make Gin? What’s the score with the law?

So to get a license to make gin you have to have already made gin, kind of a catch 22.  Luckily for us we worked with a distillery in Devon to create our recipes and first batches in order to get our own licenses which were recently granted.

What other horizontals are you exploring for the future?

We are moving our smallest coffee shop site to a much larger building that will also house the front of our gin distillery, this allows us to host a gin retail section, a gin school and evening events. Next year we are adding a much larger European style cafe which will incorporate our gin, coffee and soon to be added pizza business in a new Burgess Hill revitalization project.

Thank you Doug, all the very best, a toast to your ongoing success.

View the borrowing application here.


01st Mar, 2019

Athena Catering Solution provided by Le Bureau Limited.

In industrial environment such as hospital and prisons, prisoners and patients need to be provided with nutritional meals. Prisoners need to be provided with five main options and sides and sweet options. Patients also need to be offered nutritional meal options.

Prior to presenting menu options to prisoners and patients, Athena our catering solution provides dietitians and catering staff with the ability to build model recipes and menus. Model recipes are defined in terms of their caloric, fats, proteins, vitamins, minerals, allergens, consumer acceptance, etc.  There are some forty elements that need to be considered in the analysis, including special menus to meet dietary conditions, vegetarians, vegans, allergen free, etc. 

Athena uniquely provides the facility to measure recipes and menus at the planning, preparation and serving stages.  

The issue that Athena addresses is that as ingredient suppliers and ingredients change, cooking methods change in recipes, athena provides an accurate measure as to how production recipes and menus meet model recipes. Hence alerting staff if the recipe and menus do not meet standards.

Athena can also determine at production level which recipe from a range of recipes meets the model recipes.  

Menus are presented to patients and prisoners with complete nutritional and allergen details so informed decisions can be met.

Meals in prisons are normally selected by prisoners two weeks in advance providing time for ordering and preparation. In a hospital same day selection, preparation and service occurs.

Athena uniquely provides several options for obtaining meal selections from prisoners and patients: paper and scan menus, tablet computers, smart phones (Bring Your Own Device), computers on wards.

Once the menu numbers have been collated:  meals are prepared, purchasing takes place, inventory pick and pack lists prepared, meal severed, receipting good in, etc. 

Athena provides a consolidated system that meets the needs of the whole catering process. From inventory control, recipe maintenance, menu planning, meals selection, meal preparation, serving meals, health and safety, cost control and purchasing. Athena provides a ful range of management reports and financial operational reports to monitor the catering operation.

The real beauty of the system is that it can be implemented in Schools, Colleges, Hospitals, Care Homes, Prisons, etc. it is a system which is highly functional, but can be adapted to any environment. The system architecture has been designed to meet individual client’s needs.  

The solution provided by Athena can also be extended to schools and colleges, home cares and chains of restaurants. Visit our lending application here:


26th Feb, 2019

Cashback Offer

The good weather this February has put us in a generous and giving mood.

We’re currently offering £200 cashback to any lender that lends more than £10,000 on any one loan on the primary marketplace. That works out to 2.0% extra on your investment!

The Small Print

The cashback will be paid out to eligible lenders on successful completion and draw down of the loan by the borrower.

The cashback will be credited to eligible lenders’ accounts.

This promotion is available on all bids placed before 30 April 2019.

This promotion is in addition to our ongoing lender incentives offered on each loan.

Existing Lender Incentives Include:

The above incentives are ongoing incentives that are paid out to eligible lenders on successful completion and draw down of the loan by the borrowing business. Cashback is paid directly to lender accounts as promotional credits.

Capital is At Risk. Investments not protected by the Financial Services Compensation Scheme. Find out more about the risks.


01st Feb, 2019

Sourced Becomes the Newest P2P Lending Platform on the Block

We’re proud to announce that Sourced* have recently been approved as our newest appointed representative launching their property-focused peer-to-peer lending platform exclusively for High Net Worth and Sophisticated Investors.

Sourced are managed by a team of highly experienced property investors and developers with extensive experience in finance and in P2P lending. Having previously operated as one of the largest property sourcing networks in the UK, as a registered member of the Property Redress Scheme, the team at Sourced are now broadening their business offerings by allowing HNW and Sophisticated investors to fund property development projects through their network of franchisees. Sourced have a strong focus on educating lenders on investing in property generally as well as lending and investing in property via their P2P platform.

Sourced Directors from the front: Stephen Moss, Paul Rose, Chris Kirkwood, Ryan Brown

Sourced will offer bridge-lending opportunities, secured on property and will typically offer loan terms of between 12 and 24 months.

We have worked closely with the team at Sourced over the last few months to ensure that they meet the regulatory standards required by the FCA to operate a P2P platform. We’re excited to be working with them and helping them along the way.

Daniel Rajkumar says “

“Our Appointed Representative solution gives platforms the opportunity to operate as authorised platforms, by working in collaboration with rebuildingsociety.com, an FCA-authorised company and Network Principal who takes responsibility for overseeing and monitoring compliance activity.”

Meet the Directors

Stephen is the founder of Sourced and its Managing Director. He is a serial entrepreneur having founded and successfully exited a number of other businesses, including the franchise business Legal for Landlords. He is a vastly experienced property investor, sourcer and developer having worked in the property industry for over 15 years.

Ryan is a co-founder of Sourced and its Finance Director. He is a member of the Institute of Chartered Accountants in England and Wales and an Approved Person with the FCA. He has worked for international businesses, including within the SAAS, FinTech and Property industries.

Paul is a co-founder of Sourced and its Property Director. He is a greatly experienced property professional having been an owner/manager of a sales and lettings business. He has operated in the property sector for over 10 years, building and managing a successful property portfolio.

Chris is the Training and Development Director at Sourced. He is a fully certified NLP trainer and has a wealth of property experience. He successfully founded, grew and exited a service business for 10 years and is a property mentor to a network of property professionals.

Only Sourced’s P2P Lending activity will be overseen by rebuildingsociety.com as their network principal.

Appointed Representative Offering

The full authorisation journey can take months or even years, the AR process is a shorter procedure which can be completed in under eight weeks.

We are taking this opportunity to establish ourselves as a reliable, experienced Network Principal and assist other platforms in getting to market, whilst maintaining our position as a P2B platform in our own right. Read more about the Appointed Representatives service we offer here.  

 

Find out more about Sourced by clicking on the logo below. 

 

* Sourced is a trading name of Jark-1 Limited.


28th Jan, 2019

Dashboard Changes – Lender Performance Charts

We’re making changes to the look and feel of the website. One of the areas that you’ve told us you want to see change, is the lender dashboard. You’ve told us that you would like a more visual representation of your investments and use of the platform. We’ve been listening and have started implementing some changes.

You may have noticed the recent addition of the ‘Net Worth’ Chart on your lender dashboard. This helps you quickly interpret your performance throughout your time on rebuildingsociety.com. Let’s review the new chart and see what it shows us…

(more…)


15th Jan, 2019

Reasons Why rebuildingsociety.com is the Best Place for Your IFISA

As we head towards the end of the tax year, think about where you have your ISA, what type of ISA products are available and whether there is another ISA provider that might be better for you.

The Innovative Finance ISA lets you use your tax-free ISA allowance in peer to peer (P2P) lending, as on rebuildingsociety.com.

Here’s a few reasons why we think that rebuildingsociety.com might be the best place for your IFISA.

Our Net Return

 

Lending on rebuildingsociety.com you can lend at rates of up to 20%. Our current platform average net return, with income reinvested is 8.6%*. This compares very favourably to other ISA products, such as the Cash ISA. However, you should remember that unlike a Cash ISA, your capital is at risk in an IFISA. Our historic performance is strong, but performance can vary with marco-economic conditions.

It’s Flexible – Access Your Funds

Each month you receive repayments from businesses, which may be withdrawn or reinvested. The availability of our secondary market means that you can access money from your IFISA by selling them on the secondary market, making our IFISA, a flexible ISA.

So do not need to worry about your funds being completely tied up and being inaccessible if you need them.

Provided there is a demand for the loan parts on the secondary market, you should be able divest from the loans. Withdrawing from your ISA part way through the tax year will not affect your ISA allowance, just credit the funds back to your IFISA account before the end of the Tax year to benefit from the tax wrapper. So you can dip in and out of your IF ISA.

Support UK Businesses

When you invest on rebuildingsociety.com you’re lending directly to real UK SMEs and in doing so you’re earning a healthy return.

UK Small and Medium businesses are the backbone of the UK economy. By lending to these businesses, that have been underserved by the banks, you’re directly contributing to the UK economy.

High Levels of Transparency

We pride ourselves of the level of transparency that we offer on our platform in comparison to many other Peer-to-peer lending platforms.

When you lend on rebuildingsociety.com you’ll always know exactly who it is you’re lending to. Not only this we’ll also help you understand the risks associated with lending to particular companies, helping you make the best lending decision for you.

Things to Consider

An IFISA may allow you to earn higher returns than many other ISA products, however, an IFISA involves making numerous small loans to UK Businesses. Therefore, there is a chance that some of the businesses you lend to might not be able to fully repay the loan, thereby putting your capital at risk, until it is recovered or lost. You should ensure that you understand the risk associated with the IFISA and peer-to-peer lending, to find out more, please read our risk page.

*The current platform average net return is the compounded annual return after bad debts and fees for lenders on the platform. Past returns may not be indicative of future returns.

To find out more about our IFISA please visit our IFISA Page,  read our Lender FAQs, or get in touch by emailing support@rebuildingsociety.com

Read more about Individual Savings Accounts (ISAs).  


11th Jan, 2019

What is an ISA Account?

We know that many of you are already savvy investors and many savers know about ISAs. However, our lender base is made up of a variety of different people with varying levels of experience and understanding, so we thought we’d write a short informative piece on ISAs to help answer any questions our lenders might have.

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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.


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