P2P finance is on the up - thankfully for SMEs
The UK's peer-to-peer (P2P) finance sector continues to expand - at an even faster rate than previously thought. According to market data published by Alternative Finance (Alt Fi), a media outlet that monitors alternative finance sectors, including crowdfunding, cumulative lending has doubled since last December.
Major platforms have now lent a combined total of more than £2 billion, having reached the £1 billion milestone nine months ago, according to the recently published figures, compiled in conjunction with boutique investment bank, Liberum.
What Alt Fi calls P2P business lenders (and Money&Co. prefers to term person-to business or P2B lending) has done particularly well., accounting for 49.4 per cent of the P2P total.
Commenting on the figures, Money&Co. CEO Nicola Horlick said: "These figures shows how robust and dynamic this sector is. Properly managed crowdfunding, with a diligent and careful credit-analysis process, and stringent risk analysis can and does provide a viable and beneficial alternative source of funds for the small and medium-sized enterprises that are the lifeblood of the UK economy. It is just as well that our sector is performing so strongly, as the banks have totally and inexcusably failed companies in search of credit and investors in search of a worthwhile return for their cash."
Money&Co. currently features an A-rated borrower offering an indicative gross yield of more than 7 per cent. For detail, click here.