How can P2P help with the cost of living crisis?
Brits have been hit with tons of data over the last week that will affect their everyday cost of living.
New reports have suggested that inflation could surpass seven per cent this year to reach levels last seen in the 1990s and Ofgem has revealed that the energy price cap will rise by a record 54 per cent or an average £693 per household from 1 April.
Consumers are being attacked on all fronts with their money not worth as much in real-time while bills continue to increase.
But how can peer-to-peer lending platforms help with the cost of living crisis?
Here Peer2Peer Finance News summarises four ways in which the sector can offer its support.
Read more: Which P2P platforms offer holiday loans?
Read more: P2P property platforms that support SME housebuilders
IFISAs
Consumers can look to P2P platforms and Innovative Finance ISA (IFISA) providers for consistent inflation-beating returns.
Despite Covid and economic uncertainty, Peer2Peer Finance News analysis has found that IFISAs returned an average of 9.01 per cent in 2021 and 9.04 per cent in 2020.
Personal lending
As well as providing consistent returns for investors, the sector continues to support borrowers.
There are several P2P platforms that still provide competitive rates for consumer loans, such as Elfin Market, Connective Lending, Leap Lending, Lendwise and Lendable.
Supporting SMEs
Small- and medium-sized enterprise (SME) companies are struggling with supply chain problems and developers with access to finance to tackle the housing crisis.
From ArchOver, Rebuildingsociety and Crowd2Fund, to P2P giant Funding Circle, a number of platforms support SMEs with business loans.
And on top of this, P2P property platforms such as Assetz Capital, CrowdProperty, Folk2Folk, Invest & Fund, Kuflink and CapitalStackers provide SME housebuilders with finance.
Going green
The P2P sector also continues to support environmental causes, including eco-friendly alternatives to the ‘Big Four’ energy providers. Crowd bonds platform Abundance Investment allows investors to fund renewable energy projects while Lendwise supports students with education finance.
Several P2P property lending platforms, such as JustUs, Assetz Capital and CrowdProperty, fund the offsite construction of greener, sustainable housebuilding.
And Assetz Exchange, which is part of the Assetz group alongside P2P platform Assetz Capital, has financed the development of supported living apartment blocks to home ex-prisoners and people with learning disabilities.