The amount of money lent through the peer-to-peer sector increased by 121% in 2013, when compared to the previous year, figures from the Peer-to-Peer Finance Association show.
By the end of the fourth quarter in 2013, cumulative lending in the sector had hit £843m, compared to just £381m in the same period of 2012. The figures demonstrate how fast the sector has grown since it first began in the UK in 2005.
Peer-to-peer lending is a method of debt lending that allow individuals to borrow and lend money without using an official financial institution as an intermediary.
Christine Farnish, chair of the Peer-to-Peer Finance Association, said, “2014 will be a significant year for the industry. We are about to pass the £1 billion milestone of total monies lent and in April we become regulated by the Financial Conduct Authority, something we strongly support.”
According to data published by the charity Nesta last year, alternative finance intermediaries, including sources such as crowdfunding, peer-to-peer lending and invoice trading, raised almost £1 billion in 2013.
Daniel Rajkumar, managing director of lending platform rebuildingsociety.com, commented, “With regulation of the peer-to-peer market in effect from April 1 and plans to include the asset class of ISAs, this could be the start of a huge upsurge in lending volume, with UK businesses and creditworthy consumers set to benefit from better value loans.”
The Treasury is currently in discussion around extending the ISA regime to include peer-to-peer and debt-based lending. The move could potentially provide savers and investors with flexibility, transparency and control over their finances.
Like our Facebook Page
Infographic: Fighting The Environmental Impact Of Face Masks
10 Perfect Zero Waste Christmas Gifts To Give This Year
10 Simple Home Improvement Tips To Create A Green Home Environment
Business Initiatives: Ways to Preserve the Environment
Ultra Simple Guide to Consumer Solar Panel Installation
7 Very Important Steps to Become an Eco-Friendly Dog Owner
The Unbelievable Car Insurance Perks of Being an Eco-friendly Car Owner
5 Very Important Sustainable Guidelines for Home Renovations
9 Essential Elements of Success for Eco-Friendly Food Trucks
Comprehensive Analysis of the Environmental and Financial Benefits of Hybrids
Implementing the Best Sustainable Construction Practices with Timber
An Important Look To The Future of Green Construction
The Triumphant Turnaround of Tesla Motors
4 Eco-Friendly Ways to Invest in Your Business
The Terrifying Effects of Polyester on the Environment and Our Health
Understanding the Horrifying Hazards of E-Waste 101
The Terrifying Environmental Footprint Of PPE Disposals
Sustainability is Transforming the Diamond Industry
Massive Technological Advances Create a New Era for Sustainable Farming
4 Sustainable Real Estate Renovations to Complete Before Renting Your Home
- Editors Choice10 months ago
10 Green Companies With Amazing Environmental Initiatives
- Environment11 months ago
How You Can Celebrate An Environmentally Friendly Christmas Or Holiday
- Features10 months ago
5 Sustainable Home Improvement Ideas To Improve Your Home’s Value
- Environment11 months ago
Simple Hacks to Slash Your Environmental Footprint for the Holidays