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businessagent.com becomes NextFin, The Alternative Finance Marketplace

The alternative finance market

NextFin compare and rate equity & debt crowdfunding investments including the platforms they are marketed on, allowing investors to make informed decisions.

Our mission is to help investors to make more of their money, and help business owners get the funding they deserve.

Live UK Equity Crowdfunding Market:

£62,678,564 Target £29,456,938 Committed 94 Live Pitches

Equity Crowdfunding Pitches

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P2P Lending

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buy2letcars

What we do for investors

We provide factual analysis, real-time data and ratings which help investors to make informed decisions about their prospect investment. Whether that be a company, product or indeed the platform on which the investment opportunity is marketed.

Our ratings enable investors to see clear, timely and not misleading like for like comparisons all in one easy to access place. This gives the investor the benefit of a detailed insight which often extends beyond the level of their usual due diligence saving valuable time and cost.

Wht we do for investors, entrepreneurs and platforms.

What we do for entrepreneurs

Providing the entrepreneur with an objective fact-based assessment of their business sets a clear advantage over those non rated equity crowd funding pitches. Our fully comprehensive ratings encompass a detailed review of the Company’s product/service the management and financial model. They are offered free of charge and can be used as a highly effective marketing tool promoting investment interest in the business.

We understand that some companies may not achieve a high investment rating which is why we also recognise innovation, community, charity and environmentally friendly investments by awarding a Social Impact Rating (SIR) to each business we review. This really does highlight an often unexploited investment differentiator.

What we do for platforms

NextFin really is the compliance solution for alternative finance providers. By working with, and providing data to NextFin the platforms are complying with the FCA rules. Being completely transparent and allowing fair and not misleading comparisons to be made available on such key metrics as due diligence procedures, exits, money raised, interest and default rates.

Providing this independent clarity improves standards and builds trust in the marketplace.

We work with the platforms and offer our rating widgets without charge to show their performance to their investors. Highlighting successes and thus increasing brand awareness, driving additional traffic and conversion.

Kuflink

Latest Blogs

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Approved Persons Regime Replaced

The Financial Conduct Authority (FCA) have replaced the Approved Persons Regime from the 9 December 2019. Along with the new P2P platform rules, detailing the need for transparency and ensuring potential Investors have adequate knowledge and understanding before investing, the FCA have updated the rules for Approved persons to “reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence’. This rule is not only applicable to the P2P and Equity Crowdfunding community, it is a rule across the entire financial industry regulated by the FCA. The FCA are seeking to encourage a culture of staff at all levels taking personal responsibility for their actions and to make sure firms clearly understand and demonstrate where their responsibilities lie. Appointed Senior managers should fully understand the risks they are taking on under SM&CR. There are specific responsibilities a firm must give to their senior managers known as ‘prescribed responsibilities’ but once a firm has identified the Senior Managers it must clearly state what their responsibilities are and what they are accountable for. If the FCA find a senior manager in breach of any rules for their area, they are then held personally liable if no remedies are taken to either stop the breach or to prevent it. The FCA can, and have in the past with banks, enforce fines on the individual rather than the firm and if there are serious breaches of the rules, custodial sentences. The P2P industry has seen quite a few changes recently however they are to encourage firms to act more responsibly to ensure there is no harm to consumers and to strengthen the integrity of the market.  
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FCA New Rule on Transparency

The new Financial Conduct Authority (FCA) rules become enforceable on 9 December which will affect crowdfunding and peer-to-peer (P2P) platforms, PS19/14 section 2.36, detail the need for the platforms to be transparent and provide potential investors the ability to compare opportunities across all platforms. Extract from The FCA Rule:  The investment - to ensure that investors are provided with relevant information about an investment, to improve transparency of the fees and platform charges for the services provided, and to help prospective investors compare investment opportunities across different platforms. This included: ongoing disclosures – to ensure that, at any point, customers can access details of each P2P agreement they have entered into outcomes - where a platform sets the price (pricing platforms and discretionary platforms), it must publish an ‘outcomes statement’, which includes: the expected and actual default rate of all P2P agreements by risk category a summary of the assumptions used in determining expected future default rates the actual return achieved (where a platform offered a target rate) As an aggregator we aim to rate all the investment opportunities in the Equity & Debt crowdfunding market and believe a detailed loan book from P2P platforms should be openly displayed. There are obviously some sensitive commercial elements to this from a platform’s prospective. However, once the new rules come into force it will create a level playing field and investors will be able to see how many loans a platform has placed and successfully fulfilled. The golden rule here is for the platforms to embrace the transparency which will instil confidence and trust in their platform. P2P sites must disclose and move forward with the mindset they are going to become more successful in a fully transparent market place. As a regulated professional and an organisation which is trying to compare platforms, we estimate there is less than 10% of P2P platforms publishing unfettered loan books. It is impossible for a professional to compare platforms without this unrestricted data let alone a retail investor. To create a level of transparency and comparison across all platforms, every P2P site should be publishing a full unbiased loan book to allow professional advisors such as NextFin and IFA’s to compare fairly. When this happens the industry’s reputation will grow and in turn the market will grow, allowing prospective investors to easily compare between platforms. We understand there are certain elements to the loan book which are confidential under GDPR, however investors do need to know a minimum level of information including, the risk band of the business they will be lending to, what interest rate is payable, when the loan is due, the size of the loan, what securities are behind the loan and the default rates of the platform, in order to make a fair comparison from one P2P platform to another.
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Crowdfunding Investor Types

The new Financial Conduct Authority (FCA) rules, PS19/14, coming into force on 9 December 2019 state that crowdfunding and peer-to-peer (P2P) platforms must classify their potential investors. All regulated P2P lending platforms are required by the FCA to carry out the investor classification and appropriateness assessment. This is to ensure the investor has the appropriate knowledge, understanding and information in advance of the P2P lending process. Investors will now have to describe the type of investor they are on each of the platforms they are registered with under section 2.21 to ensure that platforms only communicate financial promotion to retail clients: High Net-Worth Individual Certified Sophisticated Investor Self-Certified Sophisticated Investor Investors will also need to demonstrate they understand the risks associated with investing before a peer-to-peer platform can start lending their money to businesses. Many platforms have started introducing the assessment test already and investors who have not completed the test prior to 9 December 2019 will no longer be able lend to businesses. However, as soon as the assessment is complete investors can continue helping and supporting entrepreneurs. This is only one small part of the new FCA rules detailed in their consultation paper, PS19/14; we will be providing further detail on the rules leading up to 9 December 2019. Read more on the PS19/14 rules: https://www.fca.org.uk/publication/policy/ps19-14.pdf
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  • Internet Business Awards Category Award Winner 2015
  • Hertfordshire Business Awards Finalist 2014

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