P2P is where the real action is
By David Turner, CEO
Forget the transfer market. The real action this summer has been in P2P lending.
Well, a slight exaggeration perhaps. This year’s Premier League spending hit £1.4bn across all clubs in the Premier League – even with a few deals left on the bench. That’s an impressive amount of business in a very short timeframe.
Having said that, it has been a busy time for P2P lenders, with big moves from key players like LendInvest, who announced they were pulling back from the retail market, and Funding Circle, who are withdrawing the option for lenders to manually choose the loans they lend against. A little closer to home, P2P lending even made it onto the front cover of the September edition of the NACFB’s magazine.
As CEO of a specialist residential property finance platform, I’m always interested in the way different customer segments view P2P lending and the changes happening across the market. As a new Patron of the NACFB, we’ve spent a lot of time over the summer talking to brokers, understanding what you expect from a P2P platform and how to make the most of our specialist proposition.
One key question we are sometimes asked is around the certainty of funding: if we agree to a loan, how can the borrower be certain of our ability to find lenders and fund the loan?
It’s a good question. We don’t hide the fact that we’re 100% reliant on a trusted and diverse network of lenders. In fact, we take it as a positive because it means we need to be 100% certain of the merits of a loan before we place it on our lending marketplace. We are in constant contact with our growing lender base and have an in-depth knowledge of their appetite for loans.
That should be good news for brokers. As a specialist lender, we are focused entirely on residential bridging loans and development finance up to £5m – it’s the only thing we do. We’ve built the business and recruited specifically around this segment of the market. We have exceptionally strong credit structuring skills across our business development and credit teams, allowing creativity and flexibility in the way we approach a loan. When the phone rings we want to be sure we can have a sensible and informed conversation and our borrowers and brokers can move forward quickly.
If there’s a loan you’re currently working on, we’d love the opportunity to take a look. We’re not a traditional lender, but we know how to make things work. Get in touch and we’ll get back to you with initial thoughts and indicative terms within 24 hours of you sharing the loan details.