Posts Tagged: SME lending

Peer-to-peer lending surpasses the £10 billion milestone

According to Orca Money, the independent data, research, and analysis provider of peer-to-peer (P2P) lending market data, the P2P lending industry has now surpassed £10 billion of lending.   The world’s first P2P platform, Zopa, launched in 2005 and since then the industry has grown to over 23 P2P platforms in the UK alone. According to…

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The Importance of Pre-Mandated Funds – A Valuable USP

It’s been only six years or so since the first peer-to-peer lending and crowdfunding platforms arrived to fill a vacuum created by the financial crisis. Since then, awareness of Alternative Finance has risen sharply. For many businesses today – whether seeking to borrow money or sell shares – an AltFi platform may be the first…

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Universal Borrowing Price Comparison Gets Closer

  Last year the Competition & Markets Authority (CMA) issued a directive to small and medium-sized enterprises (SME) lenders to advertise their products with an annual percentage rate (APR) to show more clearly the cost of the borrowing. This proposal is to take effect from August and was mandated to allow clear comparison of products…

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Peer-To-Peer Lenders Can’t Find Enough Borrowers

Disruptive innovations are reshaping the way financial services are structured, provisioned and consumed and peer-to-peer lending platforms know that their investment in technology is their advantage over traditional players.   Matching lenders and borrowers via a seamless, transparent, user-friendly interface is vital but many platforms have focused primarily on the investor side of things and…

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This Is the Golden Age of Access to Finance

The Government is promoting alternative finance, but it is the responsibility of providers to reach out to borrowers and educate them on the new finance solutions available says Chirag Shah, CEO, of Nucleus Commercial Finance, in a recent interview with the Telegraph.   While this is the golden age of business having access to different…

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Opening the Books – Preparing for Due Diligence

Any business owner seeking to raise capital must inevitably ask a simple question. Will my funding proposal represent an attractive proposition to lenders or equity investors? It’s a question that is often the precursor to a series of steps that will ultimately create a better business. A requirement for additional finance forces a change of…

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Institutional Investors Are in the P2P Driving Seat

  Since Institutional money arrived alongside retail investors on Peer-to-Peer (P2P) platforms the industry has been making strategic adjustments. Institutional influence is driving platform decisions, which, according to one industry expert, is causing a conflict of interest for investors.   The proportion of Institutional money on the P2P industry is steadily increasing, in 2015 it…

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Businesses Need to Change Their Attitude to Debt

  New data published shows that confidence among UK manufacturers has edged up slightly since last month yet businesses are still reluctant to take on debt finance. Economic and political uncertainty post the EU referendum weighs heavily on business owners and despite the weak pound driving international demand for UK goods, manufacturers are shying away…

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The Bank Referral Scheme Has Made Zero Impact

  The alternative finance industry was given a boost last year when the UK Government mandated that loans applications rejected by high street lenders must be referred to alternative finance providers. The Bank Referral scheme has so far failed to make any impact and now, just months after the introduction of this finance match-making service,…

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More Companies Are Tuning in to Invoice Finance

  New research reveals that UK and Irish business are increasingly turning to invoice finance. Data compiled by the Asset Based Finance Association (ABFA), an industry trade body, shows that invoice finance has reached an all-time high of £22bn of finance advanced to businesses at the end of the fourth quarter of 2016. This is…

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