It's often dangerous to draw broad conclusions from small data sets. But our own positive experience of demand for peer-to-peer (P2P) business loans (from individual lenders and borrowing SMEs alike) is mirrored in the larger picture reported by our friends at P2P Finance News.
"PEER-TO-PEER lenders were among the delivery partners helping the British Business Bank (BBB) fund £717m of loans to small businesses last year, the firm's annual report revealed.
The state-backed institution, which has channelled funds through P2P platforms such as RateSetter, Funding Circle and MarketInvoice, facilitated 94 per cent of its finance through banks outside of the 'big four' last year, up from 90 per cent in 2015 and 79 per cent in 2014.
The BBB has a key performance indicator of having more than 75 per cent of its finance facilitated through providers other than the four largest banks over five years, so it has already surpassed that aim.
Increasing numbers of small- and medium-sized enterprises (SMEs) also said they were aware of alternative options, at 50 per cent, compared with 48 per cent the previous year.
Overall, the BBB reported an operating profit of £49.8m for the 2016/17 year, with £9.2bn of finance now provided in total across all its SME supporting projects."
Money&Co.'s latest loan offering is A-rated, and is over 27 per cent funded at the time of writing, with a current gross yield of over 8 per cent. The average return achieved by Money&Co. lenders is just over 9.18 per cent - before deduction of our one per cent fee - in the three years and nearly £10 million of loans facilitated on our platform. More new offerings will be announced shortly.
In addition to new loan offerings, our secondary loan market, offering existing loans for sale by lenders, is available to registered Money&Co. users. All loans can be held, tax-free, in an Innovative Finance Individual Savings Account, or Innovative Finance ISA.
If you haven't made a loan via Money&Co. before, please read the risk warnings and the FAQ section. You may also wish to consult a financial adviser before making an investment. Capital is at risk, once loaned.