Home > Uncategorized > Peer to peer lenders on the march

Peer to peer lenders on the march

Or should I simply say merely a threat to the banking industry but a very welcome addition for borrowers? I think I should and here’s why

A client of mine wishes to borrow £200k. His business is well established but he needs a cash flow boost to fund a major new contract of christmas. Pure supply contact to a major retailer so little realistic room for disputes

I will not divulge any further details and whilst I would not say they are highly rated for credit they would certainly not be the worst prospect around

The peer to peer lender did not come in cheap. 11% Apr and a hefty set up free of £6k (negotiated down from £10k). A bank would be about half bothe figures.

So it is obvious where to turn to isn’t it. But that’s the start of the problems. Frankly the response from the conventional banks was slow, bureaucratic and frankly in a couple of cases, rudely dismissive.

The Ptp lender was fully subscribed within a couple of days. The procedure was simple.

Cost against hassle. That’s being weighed up at this very time but my question is, what if the ptp lender lent at 7% rather than 11%? Judging by how quickly this was subscribed there is a fighting chance that could have been feasible?

And if they did manage to get the rates down to those levels then the banks are really going to have to think again.

To my kind they should be giving this a lot of thought right now. It’s not as if they have the business community’s and publics good will to fall bank on is it?

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