Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_313523747
August 25 2020

P2P v BBB: How a start up loan compares with P2P finance

Marc Shoffman Comment & Analysis, Industry News, News, Top 3 ArchOver, British Business Bank, Ratesetter, Rebuildingsociety, Zopa

The British Business Bank (BBB) has just approved its 75,000th start up loan – here’s how they compare with peer-to-peer finance.

The Start-Up Loans Company was formed by the state-backed British Business Bank in 2012 to provide personal loans for business purposes of up to £25,000 at interest rates of six per cent.

Borrowers also get free dedicated mentoring.

Lower value business loans are also the bread and butter of the P2P lending world as it is a gap left by the banks.

Here is how getting the funds from the public compares with getting it funded through the BBB.

Read more: Zopa Bank v P2P: How the rates compare

Read more: What CBILS deals are alternative lenders offering

Zopa offers personal loans for one to five years through its P2P lending platform with an annual borrower interest rate of approximately 17 per cent, although this could be lower once an application is made.

Borrowers can get loans of up to £25,000.

Similarly, RateSetter offers personal loans from £3,000 to £25,000 starting at 3.9 per cent for one to five years.

The minimum loan is typically higher if you want business P2P finance.

Funding Circle is currently only providing coronavirus business interruption loans so entrepreneurs will need to look elsewhere if they need finance for other purposes.

Rebuildingsociety advertises loans of £25,000 and upwards with an annual interest rate of five per cent.

The minimum rises to £50,000 if you want a business loan with Folk2Folk.

The rural peer-to-peer lender offers rates of 0.38 per cent to 0.75 per cent per month.

Read more: The P2P CBILS rates on offer to borrowers

Alternatively, ArchOver’s minimum borrowing starts at £100,000 with interest from 9.5 per cent per year.

Finance-seeking businesses could also try Assetz Capital, which prefers a minimum loan of £200,000 for its business finance and has rates from 6.9 per cent.

The rate will also depend on the applicant’s own personal situation and the platform’s credit criteria but this at least shows borrowers don’t only have to rely on the state and can look to their peers if they want to start a business.

Investors turn to cash as risk appetites shift ThinCats asks Sunak to extend CBILS and CLBILS

Related Posts

Plant Growing Out Of Coin Jar On Table In Office -  Investing / Business Success Concept

Industry News, News, Top 3

Abundance Investment working on “new opportunities”

Model Houses Hanging By Strings

Industry News, News, Top 3

LendInvest bond value lost £5.8m during pandemic

Sonnenuntergang hinter den modernen Wolkenkratzern der Skyline von London, Großbritannien

Industry News, News, Top 3

Everything we know about the CBILS successor scheme (so far)

Popular posts:

  • Government responds to P2P fraud query
  • FCA lumps P2P lending in with higher risk products again
  • The alternative lenders accredited for CBILS
  • 4th Way gives its views on Zopa and Funding Circle returns
  • Funding Circle to offer first and second draw PPP loans
  • SME lender warns many companies will not survive
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by