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Alternative Finance blog


Crowdfunding and Peer To Peer Lending

Crowdfunding and Peer To Peer Lending

1 month ago


London 20th April 2018: things are heating up and we don’t just mean the weather. The Telegraph ran a story this morning suggesting that the “End of the crowdfunding party looms for start-ups”. It follows two increasingly high profile crowdfunding failures (See in the Times here and here) and a sense of justified concern that investors are tackling more risk than they thought. As you know we at businessagent.com are believers that you need the right information to make an informed decision. To our mind the issue isn’t that the crowdfunding model is wrong, but that the platforms need to be more transparent with data so that investors have everything to hand that they need. That includes the amount of screening and checks that they apply to the companies who fund raise on their platforms. Ultimately investing in start-up’s is high risk, they are more likely to fail than more established companies. Of course you are rewarded for taking that risk by the potential opportunities for gain that investing in these companies can provide and by the loss relief and other attractive tax benefits that investing via HMRC approved vehicles like EIS and SEIS offers. We think the noise around crowdfunding failures will increase further. We hope it forces the platforms to share more.

In peer-to-peer (P2P) news this week the industry trade body, the P2PFA, released data for the first three months of 2018. The industry has nearly hit a £9 billion milestone. That is £9 billion in loans to businesses and individuals – 50,000 businesses and 221,000 individuals – and there are now more than 150,000 investors in the P2P space in the UK. To the end of March 2018 £600 million was lent to UK businesses via P2P a 35% increase from lending figures in July to September 2017. P2P continues to increase its value to UK SMEs and investors.

To see what is happening across the UKs equity crowdfunding and P2P business platforms go to businessagent.com’s investor pages. And for more analysis of industry data check out our tools section. Enjoy the weekend sunshine.

Tagged: Crowdfunding peer to peer




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