Business to Business LendingB-to-B lending
By 2013, it is expected that 193 million pounds of credit will have been granted to companies in this way. This is a 203% increase over 2011. View an info chart explaining the increase in peer-to-peer credit. No signs that this will slow. Nesta, Cambridge University and UC Berkeley said in a key article on The Rose of Future Finance that "it is almost certain that the UK will see continued significant increases in the number of campaigning, intermediary, individual borrower and lender, and in the overall raising of funds to finance companies with alternatives".
On the basis of our 2011-2013 averages, we can prudently forecast that the UK alternate financing markets will increase to 1.6 billion next year and 840 million in 2014 in corporate financing for start-ups and SMBs. The advantages of peer-to-peer loans are rapidity and ease. This avoids the much more complex process of granting credit to banks.
Many companies may only need a few business day to obtain the necessary amount from on-line traders who generate their returns on the basis of the borrower's interest rate levels. Loans are appropriate for companies that have been on the market for at least two years, although this may differ according to the platforms.
This is an emerging sector, but a Peer-to-Peer Finance Association has already been established. Although they have similar features, each will have its own specific lending criterion, so it is important to make comparisons. As of April 2014, the Financial Conduct Authority will begin to govern the peer-to-peer credit markets after the suppliers themselves have been called upon to do so.
It is widely accepted that regulatory action will help to create a credible and stable place for the markets and enable further economic upturn. The British Business Bank in February 2014 announces that it is making a 40 million new pound capital injection to help fund further lending to smaller companies through the Funding Circle. A number of companies have benefited from using the Funding Circle:
Miscellaneous financial resources: Business Financial Advice Scheme is conducted by the three auditing firms involved, who browse their lists to find a competent financial advisor near you: