Nesta and Funding Circle report reveals peer-to-peer lending has potential to deliver £12 billion in business lending
Today we’re excited to help launch a new report by Nesta that looks at peer-to-peer lending for businesses.
The report – the first time an in-depth piece of independent research has been conducted into peer-to-peer business lending – looked at the characteristics and motivations of both Funding Circle lenders and borrowers and draws some very interesting conclusions about the future for peer-to-peer lending to businesses.
Highlights from the report, which has been endorsed by the CBI and Federation of Small Businesses, included:
- 77% of businesses said they would come to Funding Circle first for future finance needs, rather than going to their bank. Business owners cited frustrations with the lengthy application process with banks as their reason for using peer-to-peer lending.
- Even if banks offered a similar facility, only 27% of businesses would approach the banks first.
- Lenders place greatest importance on interest rates to explain their motivation of why they start lending to businesses, with 75% suggesting they would increase the amount they lend within the next year.
What is particularly exciting about the report is that Nesta believes in time the peer-to-peer lending industry has the potential to deliver as much as £12.3 billion in business lending annually.
This is a pioneering piece of independent research and we are pleased to have been able to support Nesta to undertake it. As we approach the milestone of having facilitated £100 million lent to businesses, we recognise that there is a huge opportunity for us and others in the peer-to-peer lending industry to help fill the finance gap that British businesses are facing.
This report is well worth a read and you can download it here.
The Funding Circle team
– See more at: https://www.fundingcircle.com/about-us/our-blog/nesta-and-funding-circle-report-reveals-peer-to-peer-lending-has-potential-to-deliver-12-billion-in-business-lending#sthash.9w3a9x8p.dpuf