Small Business Finance

on the blog

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.

20th Apr, 2016

A New Net Return Formula That Works Harder For You

We’ve established a new, simple formula to calculate your annualised net returns. This new formula will provide a more accurate understanding of your returns while better accounting for elements of the loan repayment process that we can’t perfectly predict.

To calculate the annualised net return, we consider the return generated from the capital employed for each period. A period is defined as the number of days that pass in which the capital employed remains constant. The calculation of capital employed is taken from the sum of deposits less withdrawals. (i.e. funds added minus funds withdrawn) on a cumulative basis.

How will it work?

We aggregate NetGains as follows:

We then annualise the rate of return for each period in the series:

The more frequently you withdraw credit from the platform, the more periods you will have in your series. This addition to the formula improves the accuracy of how we track the capital employed. We also take a weighted average of the annualised rate of returns against the number of days so that longer periods of consistency weigh heavier in the formula than single days of unusually high losses or gains.

Why the change?

This new method has several advantages over the previous formula:

  • It is based on historic data
  • Defaults are discounted according to their probable loss
  • Idle (unemployed) capital on the platform contributes to a lower yield
  • The benefit of compounded returns is included

Until recently we had been using a simple formula to calculate an indicative net return shown on the lender dashboard. But, the new calculation is more accurate and therefore will be more useful to you!

For example, the new method better accounts for all your money invested by accounting for employed capital and not just live investments. And, the old method failed to account for the probable recovery of defaulted loans, which created a less positive summary than was realistic.

Many lenders have had an improved site experience since we began sharing the “Probable Recovery” analysis. However, we also hear your questions about why the ability to recover debt isn’t closer to 100 percent, for example when a loan has a second charge. While it is true that stronger security does improve the likelihood of recoverability, we rely on the expertise of our legal recoveries team to make informed adjustments to the probability. We would rather state a prudent recovery probability and adjust upwards as recovery is successful throughout the process.

Defaults become a bad debt only after bankruptcy proceedings or at the discretion of the recovery team. Bad debts represent a loss, but other types of defaults do not necessarily mean a loss.

What’s next for me?

It’s difficult to give a perfect net return calculation, but this updated method gives you a more accurate net return of capital employed with the platform.

In the future, as a further improvement to the lender dashboard, we plan to add 3 tabs that will allow you to filter your dashboard stats to see “All Time Stats” (as current), “Rolling 12 Months” and “Current Tax Year.” We will keep you posted about when this feature will be available!

On request, we can give you your aggregated return data for each period, for you to perform you own analysis, please allow us 2-3 weeks from request to prepare this for you.

Please direct any questions or suggestions to the customer support team at:

Feature image courtesy of Steve Jurvetson, Creative Commons

13th Apr, 2015

A breakthrough in the finance revolution

Seeds of opportunities for SMEs and investors have been sown: the House of Lords is leading the push for a European Capital Markets Union. Central to this will be the potential for better access to finance for SMEs, and more opportunities for investors.


29th Dec, 2014

2015: a Groundbreaking Year for SME Funding

2014 has been a good year for the alternative finance industry. It has helped thousands of businesses access finance in a transparent way that connects them with hundreds of potential stakeholders. With the £2bn lent mark smashed back in the autumn, 2015 promises to be a year of greater choice and volume for SME finance and here are a few reasons why:

  • Election year should mean there is greater political pressure on lenders to prioritise business lending. It has always been a popular message, and while the Coalition can point to its record of supporting AltFi, Labour may have to promise more support to win votes.
  • Banks will be forced to refer customers to alternative lenders. The finer details of this are being worked out now, including the dominant referral website, but it will give SMEs useful signposting when looking for funding and raise the profile of online lenders.
  • More businesses are utilising cloud accounting. This allows lenders to plug in to their accounts and make a better judgement of the business’ ability to repay finance, making them more attractive to lenders. We wholeheartedly support this modern way of operating!
  • General awareness of alternative finance is only going to increase. The influx of ISA cash at some point in 2015 will lead to a new wave of media interest, while platforms are increasingly attracting venture capital investment which will manifest into more consumer marketing, predominantly on the TV, transport network and online. There will be no escaping AltFi in 2015…
  • The entrepreneurial spirit of alternative finance means new niches will be tapped. Where businesses might previously have been ruled out because of poor credit, a lack of track record or through operating in an undesirable sector, it is inevitable that some platforms will cater for this market with lenders happy to take on the risk in return for a higher yield.

It’s also a fantastic time to get a loan through rebuildingsociety’s ever-increasing lending community. Start your application now

17th Mar, 2014

Refinancing Success Story: LTT SME Ltd

Opportunities for international growth do not present themselves on a daily basis, so when Eden Akhavi, Managing Director of LTT SME Ltd was given the opportunity, not once, but twice to acquire premium assets in the USA and The Netherlands within the space of a couple of months, he turned to to finance the move with loans of £100,000 then £150,000.

Expanding into new markets and taking on debt is a change in approach to how the company was being run, Eden has to oversee a shift in culture, workload and personnel as a result of the move, but he is keen to retain the positive aspects of the business, including the low cost base as the company grows.

“Most of our datacentre operation is fully automated”, he says.

“But I expect over the course of the coming few months, these two expansions will spawn another 3-4 jobs per site. Part of our success has been automating everything possible so that we can keep our operating costs to a minimum.”

While the processes might have been automated, the customer service is anything but – something Eden is visibly proud of, but acknowledges the challenge ahead.


12th Feb, 2014

The Times 08.02.14 – SMEs can use more lenders’s research into personal credit card use by business owners was featured in The Times on Saturday 8th February. Read our full press release



07th Nov, 2013

Business bank launch: Our reaction

As Vince Cable’s long-awaited business bank makes its debut, pledging £45bn of funds to be lent to UK SMEs through two providers, he put the gap in funding down to several causes:

–          A decline in bank lending

–          Businesses outgrowing the support available from friends and family and struggling to win long term debt or equity finance

The second point is interesting because it implies a lack of people with a vested interest in supporting the business.

This is where a crowd of individual lenders can certainly help.


12th Aug, 2013 Launches its Third Client into Crowdfunding

Peer-to-business lending platform, has launched three crowdfunding sites powered by its technology; Be The Lender, eMoneyUnion and Acorn Commercial Finance.

Crowdfunding is an online market that connects individuals and businesses looking to raise funds, either through an equity stake sale, a debt arrangement or rewards, with individuals willing to invest, lend or donate.

Since publicly announcing the availability of its technology on a white-labelled basis in June, the Leeds-based company has built a thriving sales pipeline with other sites currently in development. Enquiries have come from the UK, Europe, the US and the Middle East, evidence of the widespread appeal of crowdfunding and its many guises.


25th Jun, 2013

Why Factoring is the Abdication of Credit Control…

Let’s face it, nobody likes chasing a client for payment. There’s nothing quite like upsetting a supplier you’ve worked hard to please. However, it’s an important, necessary part of every business.

It’s really easy to forget to forward an invoice to the finance department and with so many companies requesting longer payment terms has never been so difficult to get right.

Banks will sell factoring as a way of mitigating the challenges of credit control, but it comes at a cost and could be avoided with good business practice.


26th May, 2013

Business loans

Business loans are available through peer-to-peer lenders like

If your business is looking to secure a fast, affordable business loan, it should look at alternative sources, rather than just the bank.

Banks can take a long time to make a decision, and while they should be commended for their diligence (after all its where our current accounts and ISAs sit), the length and complexity of the process in order to satisfy internal processes just doesn’t benefit business owners. Priorities can change in a business and opportunities lost if the decision isn’t made quickly and funds made available.

For business loans of up to £250,000, SME owners should consider a much more effective route; peer to business lending, where individuals lend money to businesses, effectively in a syndicate, with repayments made on a monthly basis.

Rates are competitive and range from 8-20% depending on the calibre of the business, but the speed of the deal (no longer than a month) comfortably outweighs the opportunity cost of waiting six months for a fractionally improved rate.

Apply for a business loan with now

[accordion title=”Our borrowing criteria”]

  • Secured or unsecured loans available with fixed rates from 6.4% APR
  • Loan sizes £2,000-£250,000
  • Terms of 6-60 months
  • Limited companies, LLPs, PLCs, and social enterprises are acceptable
  • Businesses must have been trading for at least 2 years and have 2 sets of annual accounts filed (we require sight of financial accounts and management accounts covering the period ending no earlier than 60 days prior to the date of application submission)
  • Good credit history required (no CCJs over £250 outstanding)
  • The business must be profitable and VAT registered
  • Directors/Partners must be UK residents
  • Average quarterly turnover greater than £50k for the last 4 quarters


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