Peer-to-peer business lending. Who is investing in your business?


With the ever-increasing popularity of peer-to-peer business lending (P2P) showing little sign of slowing down, the evolving landscape of commercial finance looks unfamiliar compared with the scene of just a few years ago.

Yet it is creating further opportunities for start-ups and SMEs looking for capital. So, if you are looking for investment through the P2P channel, who is it you’ll be targeting?

You may have heard the term ‘Millennials’ before, but if you haven’t it is used to describe those born between 1982 and 1994. Due to the prolonged period of very low interest rates, saving has become pretty pointless for millennials, resulting in many beginning to look towards other methods of using their savings to generate more cash.

Conveniently, the emerging peer-to-peer sector proposes an attractive opportunity for millennials. In 2018, it was reported that more than half of all European peer-to-peer lenders were millennials. 

So, why does peer-to peer lending attract millennials in particular?

The answer lays within the nature of the demographic. Millennials are reportedly more inclined to gamble and take risks with their finances in order to potentially get a high return. This contrasts to the more conservative over-55s who prefer a safer investment on a stable return.

Due to their age, millennials are generally open to new ways of thinking, as opposed to the over-55s typically being dismissive of some modern initiatives. Interestingly, they are more likely to emotionally connect to their investments, gravitating towards current circumstances they feel passionate about.

They are also more inclined to digital technology, and this ease of accessibility has impacted the markets continued growth. Research conducted in 2018 shows that the sector is continuing to grow and mature, with loans of nearly £3bn released that year. 

Abrishek Gandhi, Co-founder and CFO of RupeeCircle, commented: “Today, the millennial salaried individuals do have money in hand to invest and are looking at alternate tech-enabled investment alternatives which help them invest without taking much of their time,”

Have you had an experience of peer-to-peer business lending? We’d love to hear from you. You can leave a comment in the box below.



Hilton-Baird Financial Solutions

03/02/2017 (15:41pm)

Hi David, Thank-you for your comment. To get started with peer-to-peer lending, you’ll first have to sign up to one of the lending platforms that will enable you to browse ventures you would consider investing in. This can be done online and is usually a quick and straightforward process. There are various different sites out there, some for consumer borrowing and some for businesses. Whichever one you choose is completely up to you, but depending on the nature of the investment some sites do require a minimum or maximum investment which can be as low as £10 or higher than £1000. Hope this helped!

David Brede

02/02/2017 (22:16pm)

How would someone invest in peer to peer finance?

Some of the funders we work with

  • 4Syte
  • Sonovate
  • Team Factors
  • Regency Factors
  • Barclays
  • Giant
  • ABN AMRO Commercial Finance
  • Investec
  • MaxCap
  • Accelerated Payments
  • Clear Factor
  • Woodsford Tradebridge
  • Blazehill Capital
  • Metro Bank SME Finance
  • Cynergy Business Finance
  • Tradeplus24
  • InvoCap
  • Time Finance
  • Leumi ABL
  • Peak Cashflow
  • Merchant Money
  • Ultimate Finance Group
  • Royal Bank of Scotland
  • eCapital Commercial Finance
  • Berkeley Trade Finance Ltd
  • Optimum Finance
  • Lloyds Bank Commercial Finance
  • Nationwide Finance
  • Santander Corporate & Commercial
  • IGF Invoice Finance
  • Kriya
  • Castlebridge
  • Haydock Finance Ltd
  • Davenham Asset Finance
  • Davenham Trade Finance
  • Roma Finance
  • Aldermore Invoice Finance
  • PNC Business Credit
  • Pulse Cashflow Finance
  • Close Brothers Invoice Finance
  • Partnership Invoice Finance
  • Skipton Business Finance
  • Praetura Invoice Finance

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