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Two More P2P Lending Platforms Approved For CBILS

Posted 4 months ago

Two More P2P Lending Platforms Approved For CBILS
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The British Business Bank has approved peer-to-peer lending platforms LendingCrowd and Folk2Folk for the coronavirus business interruption loan scheme (CBILS).

The scheme enables lenders accredited by the bank to provide facilities of up to £5m to smaller businesses which are experiencing lost or deferred revenues due to Covid-19.

LendingCrowd will offer a CBILS loan product for small- and medium-sized enterprises (SMEs), with a minimum value of £50,001 and a maximum value of £250,000. These loans can be repaid across a three or a five-year term.

The business lender will begin providing CBILS immediately, offering loans to both new and existing borrowers, subject to eligibility.

Stuart Lunn, founder and CEO of LendingCrowd, said: “We appreciate the stress and struggle that SMEs are going through and that time is of the essence in providing support.

“We have already spoken to every existing borrower, implemented repayment holidays for qualifying borrowers and changed repayment dates to better suit their cashflow patterns at no cost.

“In offering CBILS, LendingCrowd can play its part in supporting the survival and resurgence of as many SMEs as possible.”

Folk2Folk will provide property-secured loans valued at between £50,001 and £5m.

The local rural business lender said it will soon be accepting CBILS applications from its existing borrowers but intends to expand this to accept new enquiries in due course.

“As the originator of The Local Lending Movement, Folk2Folk’s purpose has always been to support Britain’s local and rural businesses,” said Louis Mathers, co-founder and director of Folk2Folk.

“Throughout the pandemic we have continued to lend to businesses and play a vital role in helping to keep the economy moving.

Commenting on the news, CEO of Nextfin, Sacha Bright, said: “It's good to see that P2P platforms are starting to be approved for government-backed loans.

“I would like to see the British Business Bank create a whole new initiative around IFISA giving savers better interest rates that invest in government-backed loans via P2P sites. It kills two birds with one stone. At the beginning of this epidemic the government reduced interest rates to nearly 0%. 

“After administrative fees ISA savers are almost in a negative position, affecting many pensioners. The P2P industry is in turmoil at the moment due to the pandemic, and a government initiative to support it would safeguard businesses, help savers and protect the economy.” 

Authors: Oliver Murphy & Sacha Bright

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: p2p alternative finance coronavirus news equity crowdfunding



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