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Could Zopa move into P2B lending ?
In Zopa's weekly email they asked an interesting question:
Zopa savers currently lend money to individuals. If Zopa also allowed small businesses to apply for loans, would you be interested in lending to them? As per individual loans, we would conduct careful credit checks and apply rigorous underwriting criteria.
This may signal that Zopa is looking to expand into peer-to-business lending, where currently Funding Circle are the leading player, followed by ThinCats. With Zopa having made a huge impact with peer-to-peer lending, perhaps business lending is the next growth area.
Zopa currently has millions of pounds of funds waiting to be allocated, so they could support lending to small businesses. They could resurrect their listings model for business lending, or stick to their market model in its current or a modified form. We await this exciting development with interest.
Burnley Savings and Loans has a queue over year long to lend to business, because that's important and pays good returns.
At the other end of the scale, when Zopa had a more direct person to person market, some of the borrowers wanted a dream wedding. I don't think it helps anyone to encourage a dream wedding. It only encourages the import of chinese goods bought in part because there isn't enough lending to UK business.