Borrowers will soon have access to Coronavirus Business Interruption Loans (CBILS) from five peer-to-peer lenders – here is what they are offering so far.
Funding Circle was the first P2P lender to gain accreditation from the British Business Bank to provide CBILS finance and Assetz Capital, LendingCrowd and Folk2Folk have been officially authorised while Crowd2Fund is approved but is finalising institutional credit lines.
Marketplace lenders MarketFinance and ThinCats are also among the total of more than 100 accredited CBILS lenders.
Assetz Capital, Folk2Folk and ThinCats haven’t disclosed their product details yet but here is how the others compare.
Funding Circle is offering loans of between £50,000 to £250,000 under CBILS.
It is also providing bounce back loans.
LendingCrowd is targeting a similar market, with CBILS finance starting from £50,001 to £250,000.
MarketFinance is only offering loans under the scheme of up to £150,000.
Businesses can also apply for its invoice finance product, offering facilities from £50,000 to £5m.
All CBILS finance is interest-free for the first 12 months.
None of the three will ask for a personal guarantee for the loans but MarketFinance said it may require one for invoice finance facilities above £250,000.
All CBILS applicants must be adversely affected by coronavirus.
Funding Circle, LendingCrowd and MarketFinance require firms to have turnover of up to £45m although MarketFinance requires a minimum of £100,000.
Applicants will need three years of trading history to apply with Funding Circle or two years for MarketFinance and LendingCrowd.
Companies must be registered in the UK and MarketFinance requires at least one director to live in the country.
Funding Circle states that 50 per cent of turnover must come from trading activity and LendingCrowd said half of income from trading activity must come from the UK.
MarketFinance states that applicants must operate in the business-to-business space, meaning they must sell goods or services to other firms.
Interest on Funding Circle’s CBILS finance ranges from 1.4 per cent and 8.9 per cent for between two and five years.
MarketFinance has slightly lower rates of between 1.02 per cent to 6.34 per cent for two to three years.
LendingCrowd said its loans will start at 5.6 per cent and Crowd2Fund said it will offer 9.5 per cent.