Bypass the bank with new peer-to-peer lending scheme for small businesses

Bypass the bank with new peer-to-peer lending scheme for small businesses

Have you heard of peer-to-peer lending?

The practise involves private savers lending money to businesses and projects via an online peer-to-peer lending website – effectively enabling anyone to become a financial broker.

This allows small and medium enterprises (SMEs) to secure funding without going through a traditional financial intermediary, such as a bank or loan company.

Peer-to-peer lending has been around since the mid-1990s, but its popularity has surged in recent years following the 2008 global financial crisis that resulted in banks becoming far more scrupulous with lending, making it harder for businesses to secure loans.

In June, the Glasgow Chamber of Commerce announced […] Read more

Risks, opportunities in China’s growing P2P lending market

In China, online peer-to-peer (P2P) lending has been growing rapidly since around 2010. If the country’s P2P lending industry can successfully control risk while capitalizing on innovation, it should help alleviate chronic funding difficulties of small and midsize enterprises.

Internet finance’s domain in China is expanding into P2P lending and crowdfunding against the backdrop of Yu’E Bao’s widespread popularity.

P2P lenders provide a platform for individuals to lend to and borrow from each other online.

Although an exact count of P2P lenders (platform providers) is unavailable, the People’s Bank of China (PBoC) reported that more than 350 were in existence as of the […] Read more