Either a borrower or a lender be - a new financial infrastructure is in the making
The Financial Times (subscription required) continues to discuss the news we reported yesterday that peer-to-peer (P2P) lending is set to hit the £1bilion mark. In the first six months of 2014, new peer-to-peer lending to businesses (which we prefer to call person-to-business, or P2B lending) grew to over £275 million, with new consumer lending at £243 million. Lending is forecast to pass the £1 billion milestone by the end of the year, according to the P2P Finance Association.
Crowdfunding at Money&Co. is all about bringing people together with business. The internet allows lenders and investors to make a direct connection with companies that need capital to grow. Instead of letting your money fester in the bank or building society at a low rate of interest, you can make a difference and get a better rate of return on your capital. Of course, there are risks associated with investment and lending – we take a legal charge on the assets of the borrowing company's assets to protect our lenders, but there's no profit without risk. For a fuller explanation, click here.
All set? So, how do you participate in this exciting, thriving market – one that doesn't have a banker in sight?
How To Lend
As far as this site goes, the first step is to register. We've had another surge in demand from our lender base - this time for a renewables company. More than £30,000 has been bid in its loan auction in the past working day. The company has now achieved 44 per cent of its £275,000 with an indicative yield of 8.6 per cent. The loan auction – the window of opportunity – closes in just under two weeks at the time of writing. Learn more by watching a short video here.
NESTA, a charity whose objects are to promote science, technology and art, has its pwn basic guide to raising money (not just for business). You can learn more by clicking here.