News Briefing - Crowdfunding, SME And Alternative Finance

screens on a television mixing desk

1.UK – P2P


Crowdfund Insider reports:

“The UK Peer to Peer Lending Association (P2PFA) is out with their quarterly report of member platforms. According to the Association, P2P lending increased more than £866 million in Q1 taking cumulative lending for the Association’s members to more than £10.5 billion.

P2PFA members are required to meet robust standards of operation. Currently, the member platforms are: CrowdProperty, Crowdstacker, Folk2Folk, Funding Circle, Landbay, Lending Works, ThinCats and Zopa.

In a change from previous quarterly reports, the P2PFA is presenting its quarterly data to include statistics for non-consumer lending flows disaggregated between business and real estate/property loans.”


2. UK – P2P


The Scotsman reports:


“Finance provider Growth Street is targeting a £60 million share of the SME lending market in Scotland after its move north of the Border.

The London-based peer-to-peer lending platform estimates that there is an £800 million funding shortfall faced by small and medium-sized firms in Scotland that it aims to help bridge.

The fintech, which recently appointed a Glasgow-based business development manager to spearhead its expansion into Scotland, said the move comes amid a growing squeeze on overdraft facilities available through traditional lenders.

Research by Growth Street, which has 2,500 investors on its platform including private individuals and family offices, found that the total overdraft limit available to Scottish SMEs has been on the decline in recent years.”

3. UK – AltFi

A marvellously mixed – yet still powerful - metaphor from the Mail as it looks at the FCA post-LCF, post-Woodford, etc:

“Box-Ticking Watchdog Asleep At The Wheel”


4. UK – AltFi

Leasing Life looks at FCA overdraft reforms:

“According to the FCA, in 2017 firms made over £2.4bn from overdrafts alone, with around 30% from unarranged overdrafts. More than 50% of banks’ unarranged overdraft fees came from 1.5% of customers, and people living in deprived areas are more likely to be impacted by these fees. In some cases, unarranged overdraft fees can be more than ten times as high as fees for payday loans.

In response to this the FCA has introduced regulation that is stopping banks and building societies from charging higher prices for unarranged overdrafts than for arranged overdrafts. In addition it is banning fixed fees for borrowing through an overdraft, requiring banks and building societies to price overdrafts by a simple annual interest rate.”


5. UK – AltFi


AltFi reports:

Lendable, which channels institutional capital into consumer lending, has secured funding arrangements worth £500m from new and existing backers.

The capital comes from existing investor Waterfall Asset Management, along with NatWest Markets and Varadero European Special Opportunities, who are funnelling cash via Lendable for the first time.”

6. UK – SMEs/AltFi

The Mail online reports on Unicorn capital.

“Over the past 20 years, Britain’s entrepreneurial souls have scaled 72 companies up to unicorn status in the tech industry, according to government-commissioned Tech Nation report, and 13 of them broke through that benchmark in the past year.”

7. International – P2P

Peer2Peer Finance News reports:

“IRISH peer-to-peer platform Flender has reached its €10m (£8.8m) lending milestone, less than two years after launching.

The lending landmark comes as the platform prepares its latest equity funding round, with the aim of raising €3.5m from investors across the UK and Ireland. These funds will be used to help expand the platform’s reach so that even more Irish businesses can benefit from access to Flender’s investor network.”