With savings and investments being eroded by inflation, we take a look at just why Britain needs peer to peer lending.
Since the crash of 2008, we’ve become used to headlines like this one from the Daily Mail telling the sorry tale of what’s happening to the nation’s savings…
“Savers lose £76bn in three years as interest rates are held at historic 0.5% low”
We understand why campaigns such as Save Our Savers are lobbying for a rise in interest rates, but we also know that many businesses are struggling to find competitive business finance and that rising interest rates could stifle their growth.
That’s why we think peer to business lending has such an important role to play in getting the British economy back on track and giving savers the rewards they deserve from their investments.
Peer to peer lending has been around for some time now. You may have heard of Zopa, an online lending who lets people borrow directly from other people.
We think that’s a very good idea. After all, stripping out the cost and complexity of the banking system can improve service and value for all. But we also think that we can improve upon the proposition a little bit.
FundingKnight doesn’t arrange loans between people but rather it matches lenders with healthy UK businesses who need additional finance to expand their already successful operations.
Lending directly to businesses through FundingKnight has several advantages.
Firstly, because there is so much more information available about businesses, it’s easier to understand their future prospects.
Secondly, because we’ve worked hard to develop a credit scoring system that includes all of the usual 3rd party checks as well as some more innovative developments of our own – created in conjunction with of the country’s finest academic minds on credit assessment – we know that we’re offering good deals.
Thirdly, because FundingKnight encourages you to spread your investment over multiple loans, you’ll be spreading your risk and maximising potential returns.
So, there you have three good reasons why investing in FundingKnight can make your money work harder.