• Home
  • Terms and Conditions
  • Privacy Policy
  • Free VPN
Easyworknet
No Result
View All Result
  • Login
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career
No Result
View All Result
Morning News
No Result
View All Result
Home Finance

Peer to Peer Lending UK: How Does it Work?

easyworknet by easyworknet
4 years ago
in Finance
Reading Time: 3min read
0
Peer to Peer Lending UK
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Article Summury

  • An entry level guide to P2P business lending. Who does it, how it works, who benefits.
    • What is P2P?
    • What is P2P Consumer Lending?
    • What is P2P Business Lending?
    • How does it work for Borrowers?
      • Information supplied by borrowers typically includes:
      • P2P platforms frequently use external sources such as credit agencies to provide additional information including:
    • How does it work for lenders?
    • How does it work for the platforms?

An entry level guide to P2P business lending. Who does it, how it works, who benefits.

What is P2P?

Peer to Peer, or P2P as it is frequently abbreviated to, is the process of connecting two parties using technology platforms. Uber is a P2P platform, Airbnb is P2P, it’s an ancient idea, a community sharing resources, brought into the digital age. It’s Person to Person.

What is P2P Consumer Lending?

P2P Lending platforms connect Lenders with Borrowers. There’s a lot of these companies, thousands in China, dozens in the UK,  they’re in the emergent ‘Fintech’ sector. Some connect individuals to individuals, sometimes these are called ‘Consumer P2P’ and enable people to borrow money for holidays, cars, weddings, or other personal reasons. It’s often quicker and easier than getting a bank loan, and the interest rates can be lower, typically around 9%, a lot better than a credit card.

What is P2P Business Lending?

Other P2P platforms connect Lenders with Business Borrowers. This means small businesses can borrow from individuals. This sector has flourished because small businesses frequently find it difficult to borrow from banks.

How does it work for Borrowers?

For the borrowing company it works like this: They research and choose a suitable lending platform, such as rebuildingsociety.com. Borrowing SME’s complete the online form to apply. Their application is then considered by the P2P company, and an appropriate interest rate is set.  They may be asked additional questions by the platform and each borrowing request is considered individually on merit. SMEs can typically borrow anything from £25,000 upwards in this way. Reasons for borrowing could be expansion to new premises, purchasing stock for a big order, or covering expenses during a quiet period. The directors may well have to provide a personal guarantee against the loan.

Information supplied by borrowers typically includes:

  • Statutory Accounts
  • Management Accounts
  • Statement of Assets
  • Additional security details

P2P platforms frequently use external sources such as credit agencies to provide additional information including:

  • Business Trading History
  • Business Payment history
  • Adverse information (CCJs, winding up petitions etc.)
  • Verification of accounts supplied
  • Directors associated businesses
  • Directors Consumer scores
  • Adverse Media

Once accepted they are listed on the platform. This way, a small business can borrow in a relatively quick and easy way. Typically a borrowing business could expect to pay interest in the region of around 14%, depending on the interest rate set according to the platform.

How does it work for lenders?

Lenders can open an account on the P2P platform and deposit funds. They can then use those funds to lend to the listed companies. They can read the company profiles, do their own due diligence, and communicate with the companies and ask them questions if they want to. When they feel confident in the potential risk and reward they can contribute all or some of the asked for amount. The P2P platform holds the lender deposits until the loan is fully funded. When the loan is fully funded, the funds are transferred to the borrowing business, assuming they wish to proceed. They receive loan repayments and interest, which may be around 10%.

How does it work for the platforms?

Different platforms charge in different ways. Some charge a fee based on a percentage of the loan, payable in one go from the loan received. Others may charge a one off fee, or a combination of fees. Each platform is able to set their own fees according to the market, and according the rules and regulations in the country they operate in.

So there you have it. P2P lending in a nutshell. A technologically enabled way to connect lenders and borrowers.

Post Views: 1,749

READ ALSO

Forex

5 Best Forex Robot You Can Buy in 2022

May 24, 2022
LinkedIn

How to Find an Angel Investor or Venture Capitalist on LinkedIn?

May 5, 2022
Travel Loans

9 Things to Know Before Applying for Travel Loans for Your Dream Vacations

March 26, 2022
Pay Off Debt

How To Pay Off Debt Faster

March 3, 2022
Tags: CrowdfundingP2P business lendingpeer to peer business loansPeer to Peer Lending UKpeer-to-peer lendingpeer-to-peer lending platforms
Previous Post

MEAN Stack Development Technology: Why it is so Popular

Next Post

Tips on Low Maintenance Indoor Plants for Happier House

easyworknet

easyworknet

Related Posts

Forex
Finance

5 Best Forex Robot You Can Buy in 2022

May 24, 2022
LinkedIn
Finance

How to Find an Angel Investor or Venture Capitalist on LinkedIn?

May 5, 2022
Travel Loans
Finance

9 Things to Know Before Applying for Travel Loans for Your Dream Vacations

March 26, 2022
Next Post
Tips on Low Maintenance Indoor Plants for Happier House

Tips on Low Maintenance Indoor Plants for Happier House

Definition of Business Finance

Business Finance Introduction & Its Importance

Difference between Short Term and Long Term Loans

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Dentist tools and mouth open with beautiful teeth

Take good care of your gum health – Know what dentists have to say

June 27, 2022
car accident

Fatal Car Accidents: What to Know?

June 24, 2022
ximo phone

Xiaomi Presented Black Shark 5 Smartphones for Gamers

June 24, 2022
Business

10 Reasons Why Your Business Need a Translation Service in the UAE

June 24, 2022
radon

How do You Test Your Home for the Presence of Radon Gas?

June 23, 2022
Safety first road sign

Safety First!

June 23, 2022
Dentist tools and mouth open with beautiful teeth

Take good care of your gum health – Know what dentists have to say

June 27, 2022
car accident

Fatal Car Accidents: What to Know?

June 24, 2022
ximo phone

Xiaomi Presented Black Shark 5 Smartphones for Gamers

June 24, 2022
Business

10 Reasons Why Your Business Need a Translation Service in the UAE

June 24, 2022
radon

How do You Test Your Home for the Presence of Radon Gas?

June 23, 2022
Safety first road sign

Safety First!

June 23, 2022

About Us

For Authors: Easyworknet is a tech-related and guest post-friendly blogging platform. We are ready to serve you information through our website. Here you can read and write whatever you want and share your valuable thought with others to help them grow with knowledge. You can help our readers by publishing an informative and quality guest post. Publish anything except spam…Happy Guest Blogging..!!

🙂

Dental

Take good care of your gum health – Know what dentists have to say

June 27, 2022
Dentist tools and mouth open with beautiful teeth

As long as taking care of your mouth’s health is concerned, there’s more to it than just straight teeth and...

Read more
by samanvya
0 Comments
Dental

Take good care of your gum health – Know what dentists have to say

June 27, 2022
car

Fatal Car Accidents: What to Know?

June 24, 2022
Android

Xiaomi Presented Black Shark 5 Smartphones for Gamers

June 24, 2022
  • Home
  • Terms and Conditions
  • Privacy Policy
  • Free VPN

Easyworknet © Copyright 2021, All Rights Reserved.

No Result
View All Result
  • Home
  • Contact
  • Business
    • Cryptocurrency
    • Home Improvement
    • Finance
    • Insurance
    • Digital Marketing
  • Technology
  • Lifestyle
    • Relationships
    • Food
  • Health
    • Fitness
    • Exercise
    • Skin Care
    • Sleep and Rest
  • Education
  • Travel
  • Fashion
  • Game
  • Law
  • Career

Easyworknet © Copyright 2021, All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In