Rebuildingsociety is planning to partner with more local councils this year, after securing a funding agreement with Basildon Borough Council last month.
The Essex-based council is providing the peer-to-peer lending platform with up to £10,000 for each suitable loan that supports small- and medium-sized businesses in the region that meet its green agenda, while earning over five per cent in interest.
“We will do some advertising for business in Basildon and we’re hoping to find the first couple of businesses in the first quarter of this year and to do the first loan in March,” said Daniel Rajkumar, managing director of Rebuildingsociety.
“I think it does show councils recognise the efficiency that P2P lending platforms can bring in delivering financial support. They don’t need to worry about the cost of setting up a fund and doing credit risk and overseeing the management that they can entrust on a lean platform.”
Rajkumar revealed that his platform will pitch to additional councils this year. As well as its recent partnership with Basildon Borough Council, the platform has worked with Leeds City Council for years.
Rebuildingsociety is going to create a dedicated page on its website to promote its work with local councils and include it in the procurement documents it uses to bid for more council partnerships. It will also provide statistics on the platform’s performance.
“We will present quite a bit of information to give informed decisions about partnering up with us, our aim is to meet with a number of different procurement managers from councils in the year to try and get more people on board,” said Rajkumar.