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The Election Result Is Boosting P2P Lending

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By on 10 February, 2020 | Read more by this author

My team and I (Neil here) have put together a special P2P Lending COVID-19 guide for you! Read how savers and lenders can survive and thrive despite the COVID-19 outbreak.

Crowd2Fund's CEO recently expressed strong views on the subject of industry news and forecasts, so we invited him to write about them on 4thWay. 4thWay's editor (Neil here) added in subtitles and lightly edited.

The election result helps the P2P industry grow rapidly

Crowd2Fund* is planning rapid expansion during 2020 due to the decisive election result, which has already begun to bring certainty and direction back to the UK SME sector.

Already we have seen an immediate uplift in business and investor confidence, with more applications for funding in the second week of January 2020 than ever before. We have received £4.25m of business funding applications which is an estimated 30% uplift on the average weekly applications.

UK fintech firms must make the most of the low value of sterling by reaching out to international investors and money markets looking to invest in the UK, now there is a clearer direction in the foreseeable future.

Crowd2Fund Description

Crowd2Fund launched the first ever IFISA. It's unique in being the only P2P lending company that alllows lenders to choose mostly unsecured small business loans to lend in for themselves. It also offers an auto-lend option.

It has completed £35 million since 2015, offering both auto-lend with auto-diversification and self-select, as well as an early exit function.

The UK has the skills for operating international P2P lending platforms

I consider the UK to be the most dynamic ecosystem for the growth of the fintech sector due to the regulatory environment, talent and capital available to launch and scale a fintech business. Last year saw a record increase in tech start-up investment from £3.1 bn to £10.1 bn, despite Brexit placing the UK 3rd globally after the US and China.

Uniquely, London is a top financial centre but also a leading technology centre globally. Crowd2Fund are headquartered in London not only because it is a global tech centre, but because London provides the perfect launchpad into other markets.

With London's geographical proximity to the US and Europe, historical ties to many other markets and initiatives born out of London such as the Global Financial Innovation Network (GFIN), it is perfectly placed. The GFIN network, currently chaired by the Financial Conduct Authority, looks at cross-border regulatory alignment across 35 different markets. It involves many well know global industry bodies, such as the World Bank and the IMF. It provides the perfect internationalisation roadmap, led by regulators.

P2P lending now tested through full credit cycle

The fintech sector is critical for our long term domestic and international prosperity, with the growing demand for capital from entrepreneurs, government initiatives and technology being the key drivers.

The fintech P2P industry has now been well tested through enhanced regulations and a full credit cycle. [I think it's a bit much to say P2P is “well” tested through a complete cycle of economic downturns as well as good times. I'd rather say the evidence is building – Neil.] It's generating many millions of pounds for investors who would otherwise be stuck with a limited choice of more mainstream markets, with traditional investing methods.

The industry is still nascent compared to the global financial sector. For example, according to the Bank of England, SME lending including property is an estimated £60 bn per year, while alternative finance accounts for less than 10% of this.

Similar to new media in the 1990s, alternative finance will become our norm and an indispensable utility globally over the next decade. It’s immensely exciting for us to be part of it.

Visit Crowd2Fund*.

Read 4thWay's Crowd2Fund Review.

The opinions expressed in this article are those of the external, guest author.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from Crowd2Fund and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

 

 

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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