The future of lending is here
On July 27th data released by the Peer to Peer Finance Association (P2PFA) indicated that Peer to Peer (P2P) lenders are projected to lend over £1 billion in total in 2014. New lending in the first six months of this year totalled £272.7 million, with a total cumulative lending standing at £1,482 million, demonstrating that P2P lending is gaining a foothold in the financial industry.
P2P Lending provides an alternative form of investment through an online platform, with retail and business investors lending money to individuals and small businesses. As Rhydian Lewis, founder and chief executive of RateSetter, stated in the Financial Times, P2P is a “nascent industry that has come out of nowhere… so to have found a foothold by lending £500m is very significant”.
Numbers don’t lie, they demonstrate that P2P is going from strength to strength. This could be improved significantly if the Treasury goes ahead with its plans for an Isa wrapper for retail investors, enabling them to hold investments within the wrapper. Therefore meaning that no tax will be paid on interest gained.
Samir Desai, chief executive and co-founder of Funding Circle reported that the Isa wrapper would be a “game changer” for the industry, as it will provide further investment in lending platforms, but will also give the industry the recognition of being a mainstream asset class, increasing awareness of its capabilities.
The potential of P2P Lending is vast and as the figures show, it is continuing to increase in capacity and potential. Knowing how to utilise this industry as a financial tool is key to developing investment portfolios and giving clients high returns on their investments. Join us in London on 15th October for the Peer to Peer Lending and Investment Briefing to hear from top P2P companies such as RateSetter, Funding Circle and LendInvest about how you can maximise your profits by taking advantage of what P2P Lending has to offer. Download the brochure here.