Peer-to-Peer Lending

on the rebuildingsociety.com blog

16th Aug, 2018

Peer-to-business Lending – It’s a Journey Not a Destination

If you’re new to peer -to-business lending you might be wondering what you’re in for, if you’re a seasoned P2B lender, you may by now understand the various processes and cycles involved in lending to businesses.

As a platform we’ve been facilitating lending to UK SMEs for over 6 years and have noticed certain trends in lender and borrower activity. We thought it might be useful to give you an insight into what you might expect as a lender. (more…)


31st Jul, 2018

Transparency Matters

Peer-to business lending started out with the ambition to be better than the banks, by being more open and transparent, more ethical, more dynamic and better for businesses and lenders alike. Since the early days of the industry, we’ve seen platforms come and go and there have been many changes to the way in which platforms operate.

Many platforms started off as marketplace lenders, arguably the most transparent of the P2P models, but over time many platforms have changed their models, today few platforms still offer real marketplace lending, and even fewer offer the level of transparency on which the industry built its foundations.

(more…)


02nd Oct, 2017

Presenting Platforms in Minsk

Following his visit to Lithuania and appearance at the 6th ECN Crowdfunding Conference, our founder and Managing Director, Daniel Rajkumar, will be speaking at the CrowdConference in Minsk.

Scheduled to take place on the 20th and 21st of this month in the Belarusian capital, the event is the third international conference of its kind. The aim of the two-day conference is to hold presentations and discussions related to various fields of financial technology, in order to identify and strengthen the potential of Belarus.

Daniel will be in the company of other speakers from around the world, including a Darden Graduate School of Business professor from the USA, the Application Director of Germany-based company BigChainDB, a member of the Department of Strategic Technologies Microsoft from Russia, and adopted Italian co-founder of revolutionary startup, ELSE Corp.

Daniel’s 30-minute presentation will offer advice on launching a P2P lending platform on a budget. He will offer advice regarding how to understand what you need, how to prepare for launch, and how to coordinate the launch of the company itself.

If you speak Russian and would like to find out more, please visit the CrowdConference 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.


22nd Feb, 2016

A Bold Plan to Purchase a Beloved Pub

With decades of commercial experience under his belt, Aidan Jewitt has set his sites on a new venture.

With the help of the rebuildingsociety.com community, Jewitt aims to raise £100,000 to purchase beloved destination pub The Gray Ox the loan and make improvements to the property.
(more…)


22nd Feb, 2016

P2P Weekly: Mainstream Move

“P2P sheds ‘alternative’ label and moves into mainstream,” Financial Times

“This is not just finance ‘by the people, to the people’ any more. Increasingly it’s about big business now,” said Warren Mead, a head of financial technology at advisory firm KPMG.

“Africa’s big banks are betting on fintech startups and bitcoin to beat disruption,” Quartz

Financial technology has been crucial to many Africans for years, as telcos gave many people access to finance for the first time. Now, more banks are working to popularize international fintech solutions like bitcoin and blockchain throughout the continent.

“Peer-to-peer lending: everything you need to know about the leading websites,” The Telegraph

Thorough analysis of Britain’s four biggest lenders from The Telegraph.

“Online P2P lenders eye high street move,” Financial Times

More online lenders are pursuing brick-and-mortar opportunities. For example, mortgage lender LendInvest hopes purchase an existing “offline” lender.


09th Feb, 2016

Collaboration with investUP Helps Bring Investment to the Masses

At rebuildingsociety, we are pleased to be collaborating with investUP, an investment aggregator that launched last year – and today, they have a brand new website that will make the user experience even more seamless and powerful.

At investUP, users can streamline their investing experience across 25+ crowdfunding sites from one account. This is ideal for investors who have accounts on 8-10 platforms, explains co-founder Dom Wolf.

investUP has a simple mission. Says CEO James Tuckett: “We’ve focused the platform on the very real challenges faced by the crowdfunding industry today. Today investing isn’t an everyday thing – it’s associated with those in the know. Today savings and investment options for regular people are rubbish. If you’re one of the 99% you’d be lucky to earn yourself a measly 1% return. Well, our answer is a people friendly portal to access the entire P2P & crowdfunding market, and we’re launching it at Finovate today.”

rebuildingsociety is built upon that same passion for making high-return investing accessible to the masses, which makes this a particularly apt partnership. And rebuildingsociety’s exemplary API makes it even easier for investUP users to lend to rebuildingsociety borrowers.

“We’re trying to encourage more and more sites to have APIs, and we’d be happy if more sites used rebuildingsociety’s API because we’ve done all the work to integrate it,” said Wolf.

As investUP moves into its next phase with a new website and many new features, rebuildingsociety remains enthusiastic about the collaboration. Says rebuildingsociety managing director Daniel Rajkumar:

“We’re excited to be a featured platform on investUP, an aggregator that shares our goal of bringing smart investment opportunities to everyone. Our API allows InvestUP users to seamlessly lend to rebuildingsociety borrowers. InvestUP are a great team and we look forward to building on this relationship for years to come.”

You can visit investUP’s new website today!The site includes new features, including Club Up, an social tool that gamifies the investing process and allows users to connect with other lenders, see what they’re lending and more. The site has also improved its search mechanism to take the guesswork out of the process. A semi-randomized search will present users with a set of opportunities from among the more than 100-150 deals available at any time.

We believe this partnership represents a growing interest in P2P lending throughout the UK as well as the industry’s ever-expanding capacity to adapt to technology, promote small businesses and put user’s needs first and foremost.


18th Jan, 2016

P2P Weekly: FinTech Gains Traction as 2016 Kicks Off, and Other News

“Why smart businesses are turning to crowdfunding,” The Telegraph

A look at what makes crowdfunding and peer-to-peer lenders promising markets in this new year.

The Telegraph notes: “from next year, hundreds of thousands of investors are expected to pour money into crowdfunding and peer-to-peer when qualifying investments become eligible for Isa status. From April 2016, individuals will be able to keep many crowdfunding and peer-to-peer returns tax-free as part of their ISA allowance.”

“Kickstarter Reports 64 Percent Increase In Pledged Donations,” Tech Times

Campaigns for tabletop and video games received the bulk of Kickstarter pledges in 2015. Across categories, people are donating less money to smaller projects, opting instead to go with campaigns by individuals and companies they already trust. This is a response in part to more and more Kickstarter projects failing to follow through with promised rewards.

“P2P ISA Challenge: “We Recognize that We as an Industry Need to Work to Persuade Advisers to Embrace P2P Lending,” Crowdfund Insider

“The introduction of the new ISA also highlights an ongoing issue for P2P platforms: The profound need to inform and educate potential investors and advisors of their services.”

“CIBC CEO Victor Dodig on banking’s tech revolution,” Canadian Business

Canadian banking leader Victor Dodig commented on the potential threat that peer-to-peer lending poses to traditional banking, saying: “With the small-business segment, speed matters more than price. In the consumer segment, speed matters, but price matters as well. That’s where the peer-to-peer lenders can actually drive a wedge, but we won’t let them do that.”


04th Jan, 2016

P2P Weekly: Lending Future is Bright in China, and Other Stories

“China Lays Out Rules for Peer-to-Peer Lending Platforms,”
Wall Street Journal

The China Banking Regulatory Commission has released rules for the P2P lending industry and is seeking public comment. Clearer regulations for the more than 2,500 P2P lending operations in China have been in the works for a while, and 2016 should be a big year for the industry in that country.

“Report: China P2P Lending Topped $150 Billion in 2015,” Crowdfund Insider

The P2P lending industry in China generated more than £100 billion in 2015, according to Chinese news reports. This indicates a high level of interest from the public in this industry, since P2P lending gets almost no institutional money in the country.

“Peer to peer lending is set to explode,” Business Insider

Writes John Mauldin: “I’ve been a fan of private credit for a long time. Recently, I have once again been exploring the private-credit world, and it seems this market is growing faster than I had thought.”

“RBI plans guidelines for peer-to-peer lending,”
The Economic Times

The Reserve Bank Of India plans to develop guidelines to regulate the burgeoning P2P industry.

“They should be regulated under the State Money Lenders Act,” said Raman Agarwal, chairman of Finance Industry Development Council. “On these platforms, lenders are individuals and State Money Lenders Act applies to individuals, and not entities. In this case, individual is not an individual lender but a camouflaged lender.”

“Funding Circle passes £1bn lending milestone,”
The Guardian

Funding Circle surpassed £1 billion lent in 2015 and is on track to lend a further £1 billion in 2016.


04th Nov, 2015

P2P Weekly: Treasury Glows

“Treasury sings praises of peer to peer lenders,” FT Adviser

At the P2P Finance Association Summit in London, city minister Harriett Baldwin tipped her hat to the P2P industry, saying: “P2P platforms and fintech provide competition, ideas, and technology– making people’s lives better and the markets more effective. When you do well, your businesses flourish. Excellence breeds excellence. Customers have the services they need to meet their aspirations. And this country becomes better off, as a result of all this activity taking place here in the UK.”

“Where it’s due: Britain’s small firms are not as credit-starved as they may seem,” The Economist

Analysis shows that the credit outlook for SMEs in the UK is better than a surface level examination might indicate. Demand for credit increases, and SMEs are repaying loans quickly. Healthier banks and small businesses have made for a lot of activity, which should be considered a good thing.

SEC votes to allow equity crowdfunding for startups, small businesses,” Chicago Tribune

In the U.S., the Securities and Exchange Commission adopted new rules that allow individual investors to buy shares of startups and small businesses through crowdfunding platforms. Crowdfunding leaders praised the move as a step toward democratising investment. There are clear limits designed to protect investors based on an individual’s net worth and other factors.

“RebuildingSociety to support own auctions,” AltFi

Rebuildingsociety.com is in the news. Our new catalyst initiative, which promises that we will be the first to invest in all loans we post, has caught industry attention.


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