Marketplace lending is evolving
The peer to peer (P2P) market is rapidly gaining traction in the UK, with alternative lenders now considered a credible and vital alternative to high street banks when it comes to providing business finance.
Funding Circle, Assetz Capital, Thincats and Rebuilding Society are just a few of the new breed of P2P providers offering flexible, affordable lending facilities to the SME market. Recent estimates claim this sector could be a trillion dollar industry within the next decade, cutting out the middle man while helping investors who are keen to support viable new initiatives.
There is evidence that marketplace lending is becoming more mainstream with the Government announcing the mandatory referral of small businesses from banks to alternative finance providers, where the former are not in a position to lend.
It is estimated that this referral arrangement could help a further quarter of a million small firms secure the finance they need.
- February 27, 2015