FSA to regulate peer to peer lending: Crowdlending gets a boost

FSA

...and we were already talking to the FSA 

The government has announced that it plans to regulate peer to peer (P2P) Lending.

The P2P Finance Association welcomed the news, saying:

“The Peer-to-Peer Finance Association has provided clarity and protection for consumers and businesses, but we have always strongly believed that introducing proportionate regulation was necessary to enable the sector to continue to flourish. “

Well, we’ve always been convinced of that here at FundingKnight, too.

That’s why our CEO, Graeme Marshall, explained months ago why peer to peer lending is an industry that wants to be regulated, but we also took some more concrete action…

 

FundingKnight has been talking to the FSA for several months and is well advanced with its application to become FSA regulated for those parts of its activity that fall within the FSA’s regime.

Rather than simply campaign for regulation, FundingKnight took the view that some of P2Ps current processes already fell within the regulatory regime and applied on that basis.  We hope to be the first regulated P2P Lender

FundingKnight CEO, Graeme Marshall, commented:

“FundingKnight welcomes the prospect of regulation of crowdlending / peer to business lending.  It may be that the news this week relates more to pure peer to peer lending and the extraordinary rates that are being charged to some individual borrowers but, regardless, some clarification and rules would be welcome.

Whereas FundingKnight believes that although matching lenders with business borrowers does not in itself fall to be regulated under the current rules, there are many peripheral activities that are less clear and so Government clarification and regulation would be welcomed.  This will also assist with the setting of standards for this new and exciting activity.  FundingKnight is seeking authorization for those of its activities that are covered by the Financial Services Authority.

FundingKnight has a team well experienced in financial markets who collectively believe that regulation of this industry will help crowdlending to become recognized as a new model for lenders and borrowers to be matched, using the power of an online marketplace.  We look forward to participating fully in discussions with the FSA and Treasury concerning forthcoming regulation.”

Whilst we’re not claiming that our discussions with the FSA prompted the Treasury’s response, we’re glad to see that the move towards regulation is now gaining momentum.

Our next online peer to business lending auction: LeisureBench Ltd.

online auction

We are pleased to announce that the next online auction has just gone live on the FundingKnight peer to peer lending website

This time we’re offering our registered lenders the chance to invest in LeisureBench Ltd.  LeisureBench were our first loan customers and have already successfully paid off their first loan.  We are delighted that we can now offer them the benefit of a full live auction process.

You can read more about the investment opportunity below and, if you haven’t already registered as a lender, please do take the time to sign up as a peer to business lender with FundingKnight.  You never know when an opportunity might pop up that’s just too hard to resist…

Business looking for funding: LeisureBench Ltd.

Amount: £50,000

Period: 9 months, with 4 month repayment holiday

Auction duration: 13 days

Reason for loan: Stock purchase – Garden Furniture

Business background:

Established in 2004 as a specialist furniture supplier and garden furniture retailer, LeisureBench has built a niche in importing outdoor furniture and buildings for the commercial sector, particularly the pub and public sectors.

LeisureBench is a fast growing dynamic company able to adapt quickly and efficiently to new trends and markets.  As direct importers with partners in China, Indonesia, Vietnam and Bulgaria, LeisureBench develops its own unique product ranges at very low cost price enabling them to compete at every level.

We lent £110,000 to LeisureBench in January this year, which has been fully repaid. This is the second of three loans we are arranging for LeisureBench to fund stock purchases for the 2013 season.

Add funds to your account:

You will need to allocate the appropriate funds to your account to complete your investment. Log on to FundingKnight and go to Add Funds in your My Money account. Remember you can invest as little as £25.

Bid now

Once funds have been applied to your account (It typically takes 24 hours for the bank to transfer the money) simply go to Find a Loan to find further information on the business and the loan opportunity and to make a bid.