Figures released by the Peer to Peer Finance Association reveal that lending via the peer-to-peer and crowdlending sector has soared in the first six months of this year. During this period the amount lent has doubled with platforms having lent out over £500m in the six months putting it on track to break the £1bn barrier for 2014.

The figure lent comprises of funds advanced to both consumers and businesses but it was growth in money lent to businesses that has led the way.

In the first quarter of 2014 £132m of new money was lent to business and this increased to £146m in the second quarter. The number of businesses borrowing via P2P has also increased from 5,169 in the first quarter to 5,919 as at the end of June.

There has also been an increase in the number of lenders supporting businesses with a movement from 31,616 to 35,477.

The growth demonstrates how businesses are quickly embracing this innovative way of raising finance.

The growth in crowdfunding comes on the back of clear signs that businesses are looking to expand and hence on the hunt for finance. A recent survey from Albion Ventures showed that a third of businesses plan to raise finance in the next 12 months. Of these 27% are targeting capital for business development and 23% looking to expand their premises. With crowdfunding sites such as Funding Circle already entering the commercial mortgage market the peer-to-peer market is well placed to satisfy demand from businesses.

If you want to know how you can use crowdfunding and peer-to-peer lending to support your growth plans read more here or simply complete the contact box at the foot of this page.

In this episode of the Business Finance Bulletin Rob Warlow looks at the latest review on the UK banks Loan Appeal Process – how successful are business owners in turning a ‘no’ into a ‘yes’?

Crowdcube, an alternative source of finance, has launched a Mini-Bond scheme and Rob explores how that works and how you could use it in your business.

Banks and crowdfunding platforms are now starting to accept that working together may be the way forward with news that a UK High Street bank has partnered with a leading peer-to-peer lending platform.

And in the Business Finance Tip of the Week Rob talks with Alister Betts of Lucid Ventures on how to get you and your business ready to seek outside investors via selling equity.

Posted on 16.04.2014, by Rob Warlow

In the latest Business Finance Bulletin it’s a good news edition with positive news about the UK economy and reports of a soaring crowdfunding market. Rob Warlow looks at reports from the P2P Finance Association on funds being lent out by crowdfunding platforms and the launch of a new crowdfunding site Landbay.

Rob also looks at a new pot of money being set aside by HSBC for lending to growing SMEs. Video is a way of getting your message across to lenders about your business and Rob talks about Crowdbox, a new service hosting business video pitches.

In the Tip of the Week Rob features a clip from a seminar he hosted in Amsterdam for Wealth Coach Kevin Green talking about the importance of financial information when approaching your bank for business finance.

In the latest episode of my Friday Business Finance Bulletin just out I look at the Chancellor’s latest attempt to boost bank lending to small businesses by looking at the possibility of providing a guarantee to the banks.

I also talk about the alternative lending scene following a recent interview I did on BBC Radio with Adam Tavener of Alternative Business Funding where we discuss crowdfunding and peer to peer lending.

In the Tip of the Week I discuss the bank’s Loan Appeal process. Did you know that if your bank has declined your loan request then you have a formal right of appeal? In this tip I share how to go about that.

Posted on 04.02.2014, by Rob Warlow

New figures released reveal that peer-to-peer lending (P2P) increased by 121 per cent during 2013.

The report published by the Peer-to-Peer Finance Association (P2PFA) shows that cumulative lending at the end of quarter four in 2013 hit £843 million compared to just £381 million at the end of 2012.

The report further reveals that at the end of 2013 there were over 3,700 business borrowers, 70,000 consumer borrowers as well as more than 86,000 active lenders.

The data has been supplied by Zopa and Ratesetter who service the individual/personal market and Funding Circle, Thin Cats and LendInvest. With many other providers in the market the actual figure will be higher, although these are the major players so constitute the majority of deals.

With the P2P platforms set for regulatory oversight by the Financial Conduct Authority from 1st April the alternative lending market is going to be set for further growth this year.

Posted on 18.01.2014, by Rob Warlow

This week, in our latest Business Finance Bulletin, a look at a problem which can lead to poor cashflow; a quick review of a new peer-to-peer lender, Lending Works which launched this week; and the Tip of the Week follows a Twitter exchange we had last week on proactively using regular financial information.

Posted on 14.01.2014, by Rob Warlow

The number of new peer-to-peer lending sites continues to increase with the recent launch of Lending Works.

Lending Works, which focuses on the personal loan market, is headed by a team from the banking, accountancy and finance industries, and it aims to provide a simple, flexible and transparent way for users to lend and borrow money.

In line with the traditional P2P model Lending Works’ online platform allows people to lend their savings for a competitive return to creditworthy people requiring finance. Personal loan borrowers are prudently selected by the company’s team of highly experienced underwriters using advanced underwriting techniques and electronic credit scoring. Loan terms and lending periods are both one to five years.

To kick start the business Lending Works completed a successful pre-launch fundraising round raising £3.5 million from venture capital and angel investors.

Rates are promised to be highly competitive for both lenders and borrowers and the company is targeting a net return to lenders of approximately 5.1% AER when their money is lent for five years.

Whilst the platform is there to fund personal financial needs research shows that many business owners do resort to using personal funds as a source of business capital.

You can find out more about Lending Works here.