In a recent article, the lack of available funding in the UK and how businesses and individuals rely too heavily on the banks for finance was discussed. Research illustrates that 80% of small businesses go straight to their high street banks for funding and many simply give up if their loan application is turned down.
In 2014, the banks funded £30-40 billion of new lending and alternative finance lenders including, Peer-to-Peer platforms funded £0.75 billion. 2014 saw strong growth within the Peer-to-Peer market as the £0.75 billion figure illustrated a doubling lending level from 2013. Further to this, banks are partnering with P2P lenders to offer referrals for unsuccessful loan applications.
Alternative lenders such as Wellesley & Co. offer borrowers a fresh approach to seeking finance, there is no ‘tick box’ application form and all proposals are individually considered by the Wellesley Credit Committee. Feedback generated by Wellesley has seen Wellesley Borrowers impressed by the honesty and straightforward nature that Wellesley & Co. have towards finance for development. The minimum loan amount that individuals can seek is £750,000 with no maximum. Every loan requires an asset to be secured against, currently the company specifically require property to be given at an average loan to value rate (LTV) of 65%. The company holds the record for funding the largest P2P loan in history and considers developments throughout the country.
Investments can also be sought by businesses through Wellesley & Co. as the organisation offers businesses accounts. Wellesley offers businesses annual rates of returns of up to 6% and can have interest payments paid as a monthly income or on maturity of their term.
Peer-to-Peer lending could be the answer that you are looking for, without the intermediaries of the banks, Wellesley & Co. is able to offer a four hour response time from the borrower’s initial application. Wellesley recognise the demand for financing for development in the UK and are committed to the cause of boosting UK-based house building whist offering investors up to 6% annual returns on their investments.