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Yesterday I read an interesting article on Credit Easing from Funding Circle. As you may be aware, the government is trying to encourage lending to small and medium size enterprises (SMEs) by creating a bond market. This is because the high street banks simply aren't lending enough.
However if we contrast this with P2B (peer to business lending) the companies of the likes of Funding Circle, ThinCats and YouAngel are facilitating lending over £2.5 million per month to SMEs. Perhaps the government should be doing more to encourage P2B lending rather than bank to business lending, and the government could do more by allowing lenders to offset bad debts against interest, just as banks do today.