The latest from the Black Country 

£4.5 Billion of P2P Business Funding Forecast for 2017

Steve GriceUK businesses are set to benefit from an expanding range of P2P finance options including overdraft style facilities.

Since 2010 the total amount raised by P2P’s for UK business is £8.7 billion, with £3.9 billion raised in 2016 alone and £4.5 billion projected for 2017.

And yet despite its remarkable growth, in a recent nationally representative survey conducted by Nesta, it was found that 76% of SME’s were unaware of P2P lending.

Birmingham based Ludgate Finance is the market leader in arranging Peer-to-Peer funding.

Ludgate have an unrivalled track record in sourcing funds for SME’s having advised on over 300 separate P2P fund raises (at a total value of over £60m) since they began specialising in this sector in 2008.

Ludgate’s expertise lies in knowing which platforms have appetite for which particular type of deal, and how to source and structure lending that benefits their clients.

Typically P2P business loans are now between £100K to £5m+ and all sectors and purposes are considered. In addition to the established platforms which provide loan funding, new providers now make overdraft-style facilities available that offer far more flexibility, and can be provided against debtors, stock, work in progress or a blend of all three.

What has really changed the game in the last couple of years is the introduction of institutional investment to platforms. This has come from pension funds, venture capitalists, family investment offices and even the UK Government. This allows platforms to give borrowers certainty of funding and to handle much larger loans.

As with the banks, different platforms have different criteria and risk appetite, so ensuring you approach the right platform is crucial.

Property always has been a key sector for P2P, but in the last twelve months, there has been a greater appetite amongst some platforms to fund MBO/MBI transactions.

These are the kind of cashflow-led deals that banks would do in past years and now have limited appetite for unless there is property security to underpin a loan.

As P2P matures as a sector, it has now passed critical mass and is so entrenched and accepted, that we can be confident that it is here to stay. What we will see in the future is more money from investors in the sector looking for good businesses to lend to. This should drive down interest rates and bring different ways of lending to the market. All this will mean that businesses, from now on will have a very broad range of finance options in front of them when they are next looking for funding.

For more information please contact Steve Grice, Director of Ludgate Finance on 07966 680532 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

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