Peer-To-Peer Lender Protects Investors
We have previously made reference to the peer-to-peer lending sector that provides finance to both personal and business customers. This lending arena has grown significantly in recent years and has become a major provider of funds that emanate from the likes of private investors.
Well, you may be interested to read that one of those peer-to-peer lenders called Ratesetter that has so far helped arrange lending totalling almost £2 billion has encountered some problems with a number of its clients who have borrowed money on the peer-to-peer‘s lending platform. Those problematic borrowers involve loans amounting to around £80 million that is a significant sum of money.
However, Ratesetter has agreed that it will protect its investors’ monies as it is to utilize its own funds to cover any losses on these specific accounts. We are sure that you will agree this is a positive move by the peer-to-peer lender.
The peer-to-peer lending sector involves investors who agree to make available their funds to be lent to borrowers seeking funding. An investor is hoping to make a better return than he or she will have had if they had instead placed the monies in the likes of a savings account offered by the likes of banks and building societies. Of course, there is always the danger that the company that has borrowed the funds ends up ceasing to trade potentially putting at risk the investors” funds in some instances.
There are many other providers of finance to businesses here in the UK. For instance, many businesses apply to a bank or building society. There are also a number of specialist commercial loan providers.
Here at Commercial Mortgage Link, we have an extensive panel of lenders so why not get in touch with us for an informal discussion about your business’s borrowing requirements. Hopefully, we may be able to help arrange a competitive lending package that you will be more than happy with.