Peer To Peer Lending

Matching lenders with borrowers

I get asked many questions about Peer to Peer lending. Here are some thoughts on how we have found collaborating with them over the past year.

The landscape for banks has changed for the better, although some banks are still very slow when it comes to making decisions, most lending over £50k is normally offered with the backing of security which involves property or land.

The main problem here is it can take a bank 2-3 months to decide as they ask for countless more pieces of information. And then if lending is approved it can take a further 2-3 months for the legal process to take its course.

The new Peer to Peer lenders have changed the landscape here with lending decisions taking days not months and money in a client’s bank account within 10 days from application. These funders can lend up to £350k with the only security being a personal guarantee. This takes months off the process, and while sometimes the rate can be higher a lot of business owners feel the speed is worth the extra cost.