The Bank of England has been urged to channel funds to small- and medium-sized enterprises (SMEs) through peer-to-peer lenders during the coronavirus crisis.
‘Big three’ peer-to-peer lender RateSetter has made this suggestion to the central bank, as an addition to support that has been given to the mainstream financial sector to facilitate more SME lending.
Rhydian Lewis (pictured), chief executive of RateSetter, told Peer2Peer Finance News that this wasn’t a bailout for P2P lending platforms. Instead, he pointed out that many P2P firms are better placed to provide debt funding than banks.
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“In the past 10 years, P2P lending has built up the capacity to lend very efficiently into the real economy, whether that is consumers, small businesses or residential property development,” he said.
“The lending processes at the leading P2P platforms are seen by many as more efficient to some bigger traditional lending.
“The Bank of England wants to get money into the economy.
“This is about the Bank of England accessing the distribution that has been built up.”
It is understood that such funds could, if approved by the Bank, come via 36H Group platforms.