Rise of peer-to-peer Business Lending in the UK

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Funding Circle via Stephen Pritchard | Aug 14, 2014

 Job Creation newFunding Circle, a leading peer-to-peer lending portal in the UK, just celebrated their 4th birthday - blog post here.

To date, Funding Circle has faciliated over £330 million to over 5,500 small businesses across the country, creating an estimated 16,500 jobs. To celebrate, we’re publishing an infographic which tracks the rise of peer-to-peer business lending right up to this year, when the industry became formally regulated.

 Infographic Highlights:

2008 - 2010

  • Financial collapse of Leman Brothers -> banks retrenched and tightening lending
  • Created huge financial gap with small businesses negatively impacting their ability to hire and grow
  • Struggling businesses start seeking alternative sources of finance triggering a P2P lending boom in the UK and US
  • More than £60 million loans were facilitated through Funding Circle in the first 30 months

View:

2013

  • UK government invests £100 million in non-traditional lending channels of which £20 million was lent out through Funding Circle's marketplace within a 10 month period
  • 5 local councils sign up to Funding Circle to lend small businesses to boost economic growth
  • Universities start lending with all interest put towards the creation of student scholarships
  • Funding Circle's marketplace grows to 30,000 lenders including government, councils and universities

2014

  • FCA publishes peer to peer lending rules to provide additional consumer protections signalling the maturity of the industry
  • Announced in the budget that ISA eligibility will be extended to P2P lending, making P2P a savvy option for seasoned investors
  • UK government reaffirms its commitment to the peer-to-peer lending industry and loans an additional £40 million (out of a total £300 million to alternative lending channels)
  • Independent research by NESTA reports that businesses borrowing through Funding Circle on average increase employment by 27%, with the portal creating a total of 16,500 jobs across the UK

 View full infographic here

Funding Circle infographic 2014

View the original source --> here

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada crowdfunding hub providing education, advocacy and networking opportunities in the rapidly evolving crowdfunding industry. NCFA Canada is a community-based, membership-driven entity that was formed at the grass roots level to fill a national need in the market place. Join our growing network of industry stakeholders, fundraisers and investors. Increase your organization’s profile and gain access to a dynamic group of industry front runners. Learn more About Us | About Crowdfunding or contact us at casano@ncfacanada.org.

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