Time to take a peer-to-peer loan?

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Funding Circle | Blog post | July 23, 2014

P2P versus Bank Loan

It takes approx 2 weeks to arrange a loan via successful P2P platform versus 3 months for a traditional bank loan.

View full infographic

The news today that small businesses are still struggling to access finance via traditional means, despite the more positive economic outlook, should comes as no real surprise for anyone who has been following business lending figures over the last few years. There has only really been one trend when it comes to high bank lending figures, and that has unfortunately been downwards.

The figures released by the British Bankers Association today show that borrowing by non-financial companies from high street banks declined in the year to June by £12.7 billion. Whilst it’s heartening to see that there was a small percentage increase in lending to small businesses in the wholesale and retail, accommodation and food, and real estate sectors, the percentage change remained below zero. Where we had previously seen some improvement in the manufacturing industry, with this being the only sector benefiting from positive increases in lending since October last year, this fell in June from ~10% to ~4%.

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In comparison, business can typically access finance directly from investors via marketplaces like Funding Circle within two weeks. The application process is entirely online and can take as little as twenty minutes, and the credit assessment team will typically have a decision for you within 48 hours. On average it can take up to 15 – 20 weeks to hear from a bank – by which time the season may have passed, or the stock you needed to buy is no longer necessary as you weren’t able to take an important contract.

Decline in bank lending

Today we’re publishing an infographic which shows just how fast a peer-to-peer loan can be for small businesses looking to grow and expand. If you have any questions, then just get in touch. Otherwise please feel free to share to help raise awareness of the choice that business owners now have when they are looking for finance.

A recent report from the UK Government shows that high street banks lending to small businesses is still declining, despite growth in the economy. Could peer-to-peer (P2P) lending offer a realistic business financing alternative?

Source:  Funding Circle Blog post

View the P2P vs Bank Loan Infographic --> here (by Funding Circle)

 

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 or contact us at casano@ncfacanada.org.

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4 Responses to Time to take a peer-to-peer loan?

  1. Hi Wes,

    Send me an email and I’d be happy to walk you through the process.

    Kindest regards,
    Tabitha

  2. Max says:

    Can I apply for a personal loan?

  3. wes isaac says:

    how can I make a peer to peer buissness loan?

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