FundingKnight is delighted to be spreading the crowdlending message over at Smart Accountancy Systems blog this week.
Put simply, a business applies to borrow some money via a P2B website or online marketplace. Their application is credit checked and analysed and, if successful, offered up to the general public using a P2B Lending platform to share details of the loans on offer.
Everyday savers and investors bid to participate in loans, each contributing as much or as little as they choose, so that one business loan is made up of lots and lots of little loans from individual savers.
Businesses benefit from a new source of business finance and savers get a chance to make their money work harder.
So how exactly does peer to business lending work? Where did it start and what are the key things to be aware of?