The ASC Blog
Peer-2-peer lending has rocketed in popularity in the last few years, but why is this? It really boils down to two points:
- Small businesses still need access to finance despite core high street banks making their lending criteria much more challenging in the aftermath of the financial crisis.
- Stagnation in wages has led people to search for other income streams. This, alongside historically low interest rates, has meant that many haven’t saved, they’ve invested.
And, add in that it’s easy to set yourself up on a lending platform, you can understand why individual investors have flocked to the platform.
It also has given those who may have been turned down by their bank and other lenders, the ability to acquire funding under different criteria.
But, while P2P lending has been successful for many, it’s not necessarily for everyone. In order to get the right finance for your business, it’s essential that you ensure that you approach the right lender, be it P2P or through exploring more traditional avenues. Using a broker will make this as easy as possible.