Peer to Peer lending

[donrajah]

I'm currently researching setting up a online Peer to Peer lending company.

If anyone has pointers or advice then I'll be interested.

 

[businessfunding]

What sort of information are you looking for?

Have you registered with the big players to evaluate their model?

I'm sure you know, but your biggest challenge by far will be attracting investors.

 

[donrajah]

I haven't yet taken out any loans for experimental purposes but intend to further down the line.
I was looking for details when borrowers don't pay and more so the contractual (the red tape) side of the business.
Any pointers?

 

[businessfunding]

I haven't yet taken out any loans for experimental purposes but intend to further down the line.
I was looking for details when borrowers don't pay and more so the contractual (the red tape) side of the business.
Any pointers?

So what have you done, and why do tho think investors might have faith in you?

 

[leemason]

Have a look at www.zopa.com.

 

[businessfunding]

You are on the peripheries of the Consumer Credit Act, depending on who you lend to

You are also on the peripheries of the FSa, dependent on who your investors are, how you manage their funds and exactly what products you are offering

You will also need top pay close attention to the data Protection act

 

[xSunshinne]

Hi,

I guess you've been watching/reading bank of dave? If not i highly recommend you do!

I did some research into the topic, as i got really into it all! All you generally need is a consumer credit licence which cost around £1000. You could also look at insurance to keep your customers feeling safe, but i dont know typically how much this is. Other than that, keep a close eye on the fsa, there really strict for some reason, and instead of letting people sort the economy out, the seem to want to hold everyone back!

The margins in this type of business are great, you can offer consumers great interest rates and allow cheap loans for the people who need them, while taking a tidy cut yourself.

Where abouts are you from? I would love to work with someone on a business like this.

Cheers!

Matt

 

[businessfunding]

If you want a bit of light entertainment with a camera-friendly northerner giving it large, Bank on Dave is great fun

If you want to understand lending & borrowing, talk to professionals

Out of interest, x sunshine, other than watching a sitcom, what research have you done?

 

[Uwe (Invoiceberry)]

Hi there,

I don't know how deep you have looked into the matter yet. However, starting a P2P lending provider definitely isn't the easiest and cheapest start-up idea. You can find some inspiration by visiting these websites:

http://myc4.com/
http://kiva.org/ (probably one of the oldest / more like charity)
http://www.lendkey.com/
http://www.communitylend.com/
http://www.prosper.com/
http://uk.zopa.com/

I know that there are also quite a few P2P lending providers in Germany and Poland at the moment. However, I think most P2P lenders are currently not very successful (profitwise).

There was also a Reuters news article a few weeks ago: http://www.reuters.com/article/2013/06/25/us-debt-loans-p2p-idUSBRE95O0M220130625

Best regards,
Uwe