British Business Bank Provides Extra £40 million To Small Businesses Via Peer-to-Peer Lender
Peer-to-peer lending to small businesses has been increasing in popularity in recent years with more of these lending platforms starting up. One such lender is Funding Circle that some years ago entered into an agreement to allow British Business Bank Investments to lend up to £60 million to small businesses through its platform. The British Business Bank is owned by the government and its commercial arm is British Business Bank Investments.
Apparently, so far, in excess of 10,000 businesses in the UK have benefited from this funding with many thousands of new jobs having been created. Some £5 million in net interest on a cumulative basis has been earned by this lending.
Well, the British Business Bank has agreed to make available a further £40 million to small businesses through Funding Circle. So, it will be interesting to see what sort of interest is shown by small businesses that require some form of financial support in the above scheme. Let us hope that it is as successful as it appears to have been when the £60 million was made available.
There is no doubt that peer-to-peer lending has appealed to a lot of investors and people wishing to borrow monies. The creation of such lending platforms has no doubt increased the competition that high street banks and building societies have been faced with and, in theory, the more competition that there is then, potentially, the customer wishing to borrow monies may benefit.
With so many lenders and lending products available to businesses these days it can sometimes prove difficult for the business owner to make the right choice. In this respect, why not get in touch with Commercial Mortgage Link and we will look to put you in touch with a specialist, experienced mortgage broker who will discuss your requirements and endeavor to help you source a suitable lending package. We look forward to hearing from you.