Peer-to-Peer (P2P) lending is becoming an increasingly popular way for businesses to receive the money they need to grow.
According to recent figures from the Cambridge Centre for Alternative Finance, alternative finance business lending is 12pc of the market for lending to small businesses in the UK. So is it right for your company?
At a basic level, P2P lending platforms connect investors who wish to lend funds to borrowers who require financing. This is made possible by online technologies, which provide investors with high-quality direct lending opportunities that would otherwise not be possible. The borrower usually sits within one of the three P2P categories: consumer, business and property. The security and return behind each of these categories varies and each platform may provide additional value-adding services to the investors/lenders and the borrowers, depending on their needs.
P2P lending provides a new, effective form of financial intermediation and from a borrower’s perspective, P2P lending offers a competing source of finance to the banks and other lending services.
Here are five ways in which ArchOver, a peer-to-peer business lending service, can help UK businesses:
- Keep the business separate from your personal life
At ArchOver, we require no personal guarantees. Borrow against your outstanding customers, based on their creditworthiness.
- Borrow the amount you need for your business to grow
Receive the full amount required on day one. We provide interest only, fixed term loans with a bullet repayment at the end of the term. Even better, there are no penalties for early payment, and re-financing opportunities are available.
- We do not employ robots
Computers don’t decide who passes and who fails. We have a team of professionals who will to talk to you and understand and your business needs. We facilitate lending based on debtors, retentions, WIP, stock and recurring revenue.
- Reduce the cost and complexity of borrowing
There are no hidden fees or extra costs, nor do you have to employ someone to manage the invoices. You maintain control of your business and can plan based on knowing you have the funds to grow.
Free up your time
We offer a simplified reporting process, which frees up your time allowing you to focus on growing your business. The loan is secured against the long-term value of the debtor book or future contracted revenue.
Most importantly we have investors, individual and institutional, who want to lend. To learn more about ArchOver and how we may be able to help fund your business contact Julian Straker at firstname.lastname@example.org or visit the ArchOver website, www.archover.com.