What effect will "Brexit" have on peer-to-peer lending?

June 9th, 2016

The upcoming referendum on the UK's continued membership of the European Union is certainly a contentious issue with viewpoints becoming polarised.  A recent poll on the P2P Independent Forum showed a bias towards members favouring an exit rather than remaining, but the comments the discussion provoked on both sides shows how difficult this has become.

So what would a "Brexit" mean to peer-to-peer lending?  The simple and honest answer is "we don't know" and those that have a definitive answer - either positive or negative - would be high in guesswork.  If the UK were to vote to leave then there would be some uncertainty in the short term, however if the UK voted to remain there would be continued uncertainty in the longer term, especially - as expected - if the vote was close.  Uncertainty may mean changing interest rates or churn within the employment sector and that could affect people's finances, positively or negatively.

In terms of peer-to-peer lending there is nothing exclusively EU-based that would affect the sector within the UK.  The concept of peer-to-peer lending started within the UK, and the UK continues to be a leader within fintech.  Lenders with funds in Euros may face greater currency fluctuations if the UK were to leave, but with underlying problems in some Euro areas, having funds in Euros does carry some longer term risk regardless.

The referendum is likely to be decided by factors other than simple economics, but if the UK does vote to leave we'll be covering any potential impacts that could affect lending.

Folk2Folk pass £100million mark

June 7th, 2016

Leading P2P provider Folk2Folk have joined the select club of peer-to-peer companies that have lent more that £100million.  Based in Cornwall the company has a growing high street presence as well as the internet.  To date Folk2Folk has not experienced any defaults.

Here is the full press release:

Following a strong start to 2016 Folk2Folk, a leading peer-to-peer lending company, is pleased to announce that it has passed the £100 million milestone of loans funded, highlighting the success that the company has enjoyed since it launched in 2013.  The milestone demonstrates the strong demand in the company’s platform as Lenders and Borrowers are attracted by Folk2Folk’s simple, secure and transparent model.

Folk2Folk brings together investors seeking attractive and secured returns, and borrowers looking for access to affordable capital to develop and grow their business.  The company has seen a huge inflow of investment over the last 12 months and has introduced funding to hundreds of businesses.  More than 70% of Folk2Folk investors are repeat lenders, demonstrating the strength of Folk2Folk’s product and the confidence lenders have in the company.

In addition to passing the £100 million milestone, Folk2Folk has launched a recruitment campaign to help with its long term growth strategy and national expansion.  Folk2Folk has appointed a new Head of Business Development and Sales, Matt Waterfield, to help widen the company’s reach and deepen its professional networks throughout the country.  Matt brings with him a wealth of financial services experience, having previously held the position of General Manager for the Middle East & Africa for Friends Provident International, an Aviva company providing investment and savings products, for over a decade.

Matt represents the first of up to 10 appointments planned in 2016 which will allow Folk2Folk to further their strong operational progress, and build on the successes that have taken place over the past year – increasing their lending by over 100% in 2015, launching its national Legal Panel, and winning the AltFi Best Lending Platform for Small Businesses Award 2015.  As part of its national expansion, the company also plans to open a further branch before the end of 2016.

Folk2Folk’s Chief Executive Officer, Jane Dumeresque, said: “We are delighted to pass the £100 million milestone, which demonstrates both the strength of demand from lenders and borrowers and their confidence in our product.  We take great pleasure in knowing that Folk2Folk has facilitated funding for many small businesses, helping them realise their ambitions.  It is an exciting time for Folk2Folk and this achievement represents only the start as we continue to grow and drive the business forward.”

Folk2Folk has facilitated millions of pounds of local investment by introducing lenders to borrowers in various industries including renewable energy, house building, agriculture, leisure facilities and land and property acquisition.  The funding has helped to deliver a broad range of projects encompassing farm diversification, property development, equestrian centres, wedding venues, and golf courses.

Proplend reduce minimum lending amount

May 26th, 2016

Peer-to-peer company Proplend have announced they are reducing their minimum lending amount to £1000.  This brings Proplend into line with other companies such as ThinCats, and should encourage more lenders onto the platform.

Here is the full press release:


London, 26 May 2016: Proplend Ltd, the UK’s specialist in commercial property peer-to-peer lending and pioneer of the P2P Loan Tranche Model, are pleased to announce that they have reduced the minimum loan investment amount to £1,000 with immediate effect.

Proplend anticipates that the reduction from £5,000 to £1,000 will broaden their investor base through a lower entry level and enable existing investors to further diversify their investments on the platform.

To kick start the new £1,000 minimum investment, a limited number of £1,000 loan parts have been made immediately available on the Proplend Loan Exchange (PLE). Two of our previous loans, Newcastle Business Park and Croydon Office Block, offer investors returns from 5.93% to 9.75% pa (before fees, bad debts and taxes), across the three tranches. New loan investment opportunities will also be listed on the platform in the coming weeks.

Brian Bartaby, Founder & CEO, commented: “This change has been primarily driven by investor demand. We were being approached by lenders who were very attracted to the stable returns offered from investing in commercial property backed P2P loans through the Proplend platform, but who found the initial investment level of £5,000 too high. Separately, we were also conscious that looking forward to investing within an ISA wrapper, the £5,000 minimum investment level would not offer investors an acceptable level of portfolio diversification. We look forward to welcoming a broader base of investors to Proplend and will continue to offer them attractive rates of asset-backed, risk-adjusted returns.” 

Moving forward, all new loans will be split into £1,000 loan parts. Investors can access attractive rates of risk-adjusted returns from as little as £1,000 and thereafter in £1,000 increments. The maximum investment in any particular loan is limited only by the amount remaining; loans vary in size, loan to value, term and location. Investors can choose, on a deal by deal basis, which loan to invest into and then which loan-to-value based tranche of that loan.

About Proplend

Proplend is an online marketplace for secured commercial mortgages, where all the loans are supported by a registered legal first charge on an income producing commercial property. Proplend makes it possible for interest rates being offered by borrowers to be earned directly by lenders, circumventing the traditional banking system and creating a new asset class. Proplend allows private individuals and institutions direct access to commercial real estate lending opportunities. Borrowers gain access to funding which is not otherwise currently available and lenders get the opportunity to earn risk adjusted monthly income.

Proplend’s simple, secure and transparent platform connects investors directly to borrowers with loans secured against UK income producing Commercial Property.  Proplend is dedicated to transparency and always ensures that investors have all the information they require to make informed investment decisions. Investors lend on a deal by deal basis, choosing their Loan Investments from Loans listed on the Proplend Loan Exchange or Loans In Funding. Proplend was the first UK peer-to-peer lending platform to offer different loans tranches, giving investors the ability to select a level based on their risk and return profile. To learn more visit www.proplend.com.

SAVY peer-to-peer lending conference

March 22nd, 2016

After a successful debut in 2015, Lithuanian based peer-to-peer lending company SAVY are running another peer-to-peer lending conference on the 23rd March.

Guest speakers from all over the world, including the co-founder of LendIt Conference Jason Jones and leaders of top P2P lending companies in the three Baltic states – Bondora (Oliver Reinsalu), Mintos (Martins Sulte) and SAVY (Vytautas Zabulis), among others, will all be participating in the conference.

A number of highly anticipated panel discussions are also on the agenda and it will touch some important topics related to the prospects, challenges and trends for Alternative Financing both on a local and global scale.

With a sizeable atendance this conference is also being broadcast live and can be watched on YouTube.

Peer-to-peer reviews

March 21st, 2016
Smart Money People

With more and more consumers looking at investing and borrowing using P2P platforms, we’re in the process of displaying independent P2P reviews here on the P2P money website. This is the first review syndication within the P2P space.

Mike Fotis, founder of Smart Money People said, “Since we launched in 2014, our mission has been to increase trust and transparency in financial services. We’ve become the leading site for independent banking reviews, and extending into the P2P industry will help us to decode this industry for many more consumers.”

To write a review, pick a company here and click the link.

Your reviews can help to better inform consumers and help to act as a self-regulating mechanism (something the FCA's consumer panel talks about as 'consumers as co-regulators').