British Business Bank Will Lend £10m Via Peer-to-Peer Lender
Government bank to start supplying sole traders, partners and business owners loans through finance provider RateSetter
Government-owned financial institution the British Business Bank will lend £10m in loans from July 21 through the UK’s largest peer-to-peer lender, RateSetter, to provide valuable funds to small businesses.
The Bank will lend exclusively through RateSetter’s business loans, which are tailored to the individual rather than the business – making funds accessible in days instead of weeks.
The Bank’s loans will be targeted to individuals, sole traders or partnerships borrowing for business purposes; for the first £4m of funds, the Bank will lend 40% of any qualifying loan, before dropping to 20% for the remaining £6m – assisting in a total of £40m of lending.
The Bank joins other major organisations who are partnering with peer-to-peer lenders in order to increase the supply of funding options to the small business community.
RateSetter’s CEO and founder, Rhydian Lewis, discussed the ‘welcomed’ collaboration:
“I believe in the power of government to catalyse change. The government is not propping up peer-to-peer lending or underwriting any loans; it is lending, on commercial terms, to stimulate lending to the real economy and to catalyse the emergence of peer-to-peer lending as a competitive force in finance.”
“This is welcome – whilst other national governments have dragged their feet (or worse), the UK has recognised the innovation and potential of peer-to-peer lending. It is sending a message to borrowers that there are now alternatives.”
