Q3 Sees Increase In P2P Lending To Businesses
Members of the peer2peer Finance Association provide data on a regular basis to the association about the volume of lending they makes available to both businesses and individuals. We thought that you may find some of the information of interest but full details can be found on their website.
Peer to peer lending has been around for several years now and has certainly grown in popularity both for investors prepared to lend some of their surplus monies in the hope of obtaining a better return than they would do had they invested the monies in an interest bearing instant access savings account and borrowers who, for whatever reason, are seeking an alternative to more traditional sources of lending such as banks and building societies.
Those peer to peer lenders that are members of the above association have advanced over £4.44 billion to businesses on a cumulative basis up to the end of the third quarter of this year with this being a big increase when compared with the end of the 4th quarter of 2016 when the figure was over £2.922 billion. New lending to businesses in the third quarter of 2017 totalled in excess of £419 million. As at the end of the third quarter of 2017 the outstanding loan book for businesses amounted to over £1.754 billion. The number of businesses borrowing funds via peer to peer lending totalled 39,043 as at the end of the third quarter of 2017 with this looking most favourable when compared with the end of the 4th quarter of last year when there were 29,594 business borrowers.
As you can see, peer to peer lending to businesses appears to be progressing very well and let us hope that it continues to do so on a long-term basis. The more sources of finance for businesses the better as healthy competition potentially leads to more competitive products, fee structures and favourable interest rates. If you are a business that is looking for finance then why not get in touch and we will introduce you to a specialist commercial lending broker that has an extensive panel of lenders.