Peer-to-peer lenders get £110m boost

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The Department for Business, Innovation and Skills (BIS) has revealed the first four successful alternative lenders who have won a share in a £110m pot of funding to help small businesses get access to finance.

Business secretary Vince Cable yesterday pledged £55m of government funding, via the Business Finance Partnership, to peer-to-peer lenders and other alternative lenders.

Match-funding from the private sector is expected to lever in a minimum of £55m.

The first four successful bidders for the funding are:

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13th Feb 2013 21:21

The issue with P2P lending in my eyes is the effort required to invest the money. You need to spend serious time screening and then researching loans you want to invest in. And then, you should only invest a fraction of your portfolio. The more you invest, the more you should diversify. So once you are talking “real” money, you need to be spending a lot of time grooming and reinvesting your money. That can quickly amount to several hours of work per month or week. You need to trade that off vs. other things you could do with that time – like earning money yourself, borrowing with UK pay day lenders online or spending time with the family.

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