Last post: Dec 28, 2012
The peer to peer loan market is growing very rapidly in the UK. Though there are already several successful market participants, many more are joining/due to join. The latest of these to make a splash is Rebuilding Society.
The peer to peer loan market is growing very rapidly in the UK. Though there are already several successful market participants, many more are joining/due to join. The latest of these to make a splash is Rebuilding Society.
This Leeds based Peer-to-peer lender was established in December 2011 by a team of entrepreneurs who set up a crowd funding website to bring together lenders with borrowers in the peer-to-peer commercial loans sector.
So, let's have a look at their set up in a little more detail from your, the borrower's, perspective:
Who do RebuildingSociety.com lend to?
RebuildingSociety.com loans funds to most successful business in the UK including limited companies and partnerships.
To be considered for a business loan you must be able to provide a minimum of two years' accounts that have been filed at Companies House, most recent management figures and have no outstanding County Court Judgments (CCJ) over £250.
In addition you must have an average turnover of at least £50,000 over the last 4 quarters.
How much can you borrow?
Loans are available up to £50,000 unsecured (Personal Guarantees from Directors will be required though) or above that for up to £2,000,000 if sufficient security can be required.
A loan can be advanced for a term of between 6 to 60 months. If you wished to apply for a further loan you would need to have kept up your repayments on your existing loan for at least 6 months and, should a new loan be agreed, it would have to include the amount required to repay the existing loan as you are only allowed to have one loan in place at any one time.
Purpose of loan
Loans are available for any legal most purposes such as expansion, refinancing, buying premises, stock or plant and machinery etc.
Interest rates and charges
The interest rate will be based upon the aggregate rate of all accepted bids. There is a charge of 0.1% for every month of the repayment term subject to a minimum of 2.9% and a maximum of 5.9%. So, for instance, if you borrowed £50,000 repayable over 4 years the charge would be £2,400 deducted from the amount advanced.
Procedure
You complete an online application form that is assessed by the underwriters at RebuildingSociety.com who will provide a decision on whether you fulfill their lending criteria with 2 working days. If you are successful your application is provided with a risk band and your loan application is posted on their website. Investors are then invited to place bids to lend you the funds and the more bids received should result in a lower interest rate that will be offered to you. Investors decide the interest rate they are prepared to lend you the funds at. The auction process takes 7 to 28 days. If you accept the offered loan terms the funds will be transferred directly into your bank account within 5 working days.
If this review of RebuildingSociety.com loans operation has got you thinking and wanting more information you can contact us here at Choice Loans and we will happily answer any questions that you have. To speak to one of our professional, experienced Advisors all you need to do is either telephone us on 0845 1260350 or complete the Commercial Loan enquiry form.
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