Posted on: 22 May 2015
The British Business Bank Investment Programme was launched in 2013 to try to help give small businesses better access to finance. So far it has pumped £400 million of state funding into lenders to small businesses, including £40 million to Funding Circle and £10 million to each of Zopa and RateSetter. The aim is to make it easier for these platforms to lend money because it improves their liquidity. However, just because a platform hasn’t had British Business Bank funding, it doesn’t necessarily mean that it’s not a reputable website to use for your loan.
Some commentators are concerned about the involvement of the British Business Bank in only a select few platforms. They see the potential for those with their backing to be able to offer more competitive rates as those without it. “Even though the credit scoring has to remain as robust,” says Andrew Hagger from MoneyComms, “these platforms could pass savings onto their customers by offering better rates of borrowing. As a result, we could potentially end up with a monopoly of P2P lending providers, which wouldn’t be good for the industry.”
View our full Peer to Peer Lending Guide or browse through the content below to learn more.
- What is peer to peer lending
- How does P2P business lending work?
- How to choose which platform to use
- What are the risks?
- What is British Business Bank backing? (you are here)
- How to improve your chances of attracting lenders at a favourable rate
Download the full guide here - PDF (Click Image)