Peer-to-peer lending set to hit £1 billion mark. July industry news

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Peer-to-peer lending set to hit £1bn mark

Data released by industry body, the Peer-to-Peer Finance Association, shows that UK peer-to-peer lending platforms handled new loans of over £500 million in the first half of the year. In the first six months of 2014, new peer-to-peer lending to businesses surpassed £275 million, with new consumer lending at £243 million. Lending is forecast by the Association to exceed £1 billion by the end of the year.

How does peer-to-peer lending and crowdfunding work?

Following the latest round of figures from the Bank of England which show bank lending is still down, despite a better economic outlook, the BBC 6 o’clock news took at look at all the various forms of alternative finance, including crowdfunding and peer-to-peer lending. One of our borrowers, Moo Free who manufacture dairy free chocolate, featured in the piece.

Robert Steel joins Funding Circle board

We announced our series D funding round for $65 million, which means we have now raised $123 million in total to grow the business. This latest round will help us to continue to improve our offer for both borrowers and investors; helping more businesses borrow in the US and UK, and improving the investment experience for all of our investors. Coverage was also seen in the Times, Daily Telegraph and Reuters, and you can read more on our blog.

Would you invest in your favourite restaurant? Investors plough more than £1m into Burrito Bond that pays 8%

Mexican restaurant chain Chilango has been inundated by investors clamouring for a slice of its business after founders released a Burrito Bond via crowdfunding site Crowdcube. The 8 per cent four-year mini-bond has proved so popular that the two-man team has already beaten their original target of £1 million by £361,600.

Alternative finance to aid commuters

A new UK start-up, CommuterClub and consumer peer-to-peer lender, Ratesetter, have come together to bring the benefits of an annual season ticket to everyone travelling within the area covered by Transport for London’s Oyster smart card. In time, the company aims to operate in other UK cities with travel smart cards too.

The pros and cons of P2P lending

BBC Moneybox focused on peer-to-peer lending in a recent episode. Our co-founder Andrew Mullinger discussed the risks involved from an investor perspective and the importance of diversification. All Funding Circle investors who have lent to at least 100 investors with a maximum exposure to any one business of 1% are earning a positive return and 60% are earning 6% and more. Read up on the importance of diversification here.

Santander gets behind FinTech with $100m fund

Santander launched a $100 million (£58.3 million) fund to back financial technology (FinTech) start-ups, as the bank’s chief executive hailed the UK as the world’s leader in financial innovation. The money will be invested across the world, but Santander chief executive Ana Botin hinted that much of the money could end up in the UK, saying: “There is no doubt the UK is leading the way in financial innovation, not just in Europe, but globally.”

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Natasha

Head of Corporate Communications