The alternative lending market contains some of the fastest growing innovative finance options available to SMEs, but many businesses are yet to explore these easily accessible growth enablers.
Despite their growing market share, Peer-to-Peer lending is still a relatively new sector of finance. A lack of familiarity with the processes involved undoubtedly adds to the scepticism from SMEs and individuals. However, it is evident that with the unprecedented rise of technology based, non-bank lending alternatives such as Wellesley & Co and the fact that they allow borrowers to straightforwardly, gain access to funds and offer attractive rates to investors that people should indeed, take notice.
While borrowers may pay a premium to work with Peer-to-Peer lenders it is balanced as the finance supplied is more accessible and there is not the traditional ‘tick box’ application process that high street lenders require. Peer-to-Peer lenders such as Wellesley & Co operate a process by which each case is judged on its individual merits. However, every loan application has to be passed by the Wellesley Credit Committee which operates an extremely strict credit policy to ensure only the most suitable deals are selected.
In essence, traditional lenders tend to supply lower rates when offering finance as their loans are guaranteed and include a lower risk factor. However, SMEs and individuals are seeking alternative routes of finance as they have been declined by mainstream lenders. It is no surprise then, that the UK Government instructed banks to recommend alternative finance products when they realised 53% of small or micro-businesses were declined loans (0-49 employees).
Wellesley & Co. is an asset backed Peer-to-Peer lending platform that sees the company place their funds into every loan made. Interest payments are not guaranteed if a borrower fails to repay their loan. Our Customer Service Team are always on hand should you require any further information about this method of alternative finance please call; 0800 888 6001 today.