Dianrong, a Chinese peer to peer lending platform, has received a new funding round in the amount of $207 million led by Standard Chartered with participation from China Fintech Fund and Bohai Leasing. The Series C funding was declared the largest ever for the direct lending industry in China. The funding was also notable as Standard Chartered, a multi-national bank based in London, represents a merging of internet finance with a high street bank, Dianrong called the investment a “new chapter” in the burgeoning peer to peer lending sector. Standard Chartered Managing Director Zhu Wei qualified […] Read more
The budding online peer-to-peer business lending industry is dangling healthy returns before retail investors and quick loan application processing speeds to advisors and other small business owners seeking loans to expand.
Peer-to-peer lending—also known as “marketplace” lending—operates by having a Web company sell baskets of loans to investors.
While the returns can seem suspiciously high, the largest business-only P2P lender, Funding Circle, promotes prudence by only lending to established firms, said co-founder Sam Hodges, who spoke at a House Small Business Committee hearing on peer-to-peer lending on Wednesday.
Hodges said Funding Circle is focusing on lending to businesses that have been in […] Read more
If you are an entrepreneur is desperate need of funds to start or grow a business, crowdfunding and peer-to-peer lending (P2P) offer alternatives – but which is best for your business?
Crowdfunding and peer-to-peer lending are similar business models, but with very different implications for cash flow and profitability.
Which is best depends on the type of business you run, where that business is sitting in the life cycle and whether debt or equity funding is the best bet for funding.
Startups generally look to crowdfunding as raising the cash has no impact on cash flows of a business making little sales or […] Read more
In the two months since it launched its mobile lending platform China Rapid Finance has made over 800,000 loans to Chinese borrowers.
In February China Rapid Finance launched a new mobile-based pre-approved borrower acquisition campaign for loans up to 500 RMB (US$80) and wrote 300,000 loans in the first month.
Zane Wang, PhD, Founder and CEO of China Rapid Finance, commented:
“Strong customer adoption of our online lending product has continued, recently putting us over the 800,000 loan mark. We believe that this represents the fastest growing and most efficient borrower acquisition program among all peer-to-peer lenders in China. This exponential growth demonstrates […] Read more
Peer-to-peer lending or P2P lending has become an established model of funding consumers and businesses in the US, UK and China and growing adoption in India.
The benefits around reducing the cost of capital and increasing access to capital are well established. Such has been its impact that even governments have backed the system, with the UK government being active participants in sites like Funding Circle and Zopa. This week it has gone a step ahead as it announced a £2 million fund created to back social organizations via peer to peer lending and crowdfunding platforms. On the other hand, regulators […] Read more
London-based peer-to-peer foreign exchange service TransferWise has become the latest company to join Silicon Valley super-venture-capitalists Andreessen Horowitz’s portfolio.
The company raised $58m in a fundraising round led by A16Z, in which the company’s existing investors such as Richard Branson, Index Ventures and Seedcamp also participated. The Series C funding round is thought to value the company at almost $1bn, although it refused to confirm or deny the figure.
TransferWise operates a foreign exchange service which uses an element of peer-to-peer funding to cut costs for users. The company directly pairs up users wanting to buy a currency with those wanting to […] Read more
Royal Bank of Scotland has partnered with UK financial technology startups Funding Circle and Assetz Capital to provide alternative sources of finance to small businesses.
Customers of RBS will be referred to the two peer-to-peer lenders if they are turned down for loans by the bank, an indication of growing acceptance of digital crowdfunding within mainstream finance.
“It is great to see companies like Funding Circle forging a new partnership with RBS to ensure that small British companies have the best access to funding,” said Chancellor of the Exchequer, George Osborne.
Both Funding Circle and Assetz Capital enable businesses to lend each other […] Read more
Gurgaon-based online peer-to-peer lending marketplace, Faircent has raised an undisclosed amount of angel funding from promoters of Fusion Microfinance, Devesh Sachdev and Ashish Tiwari. The latest funding has valued the firm at USD 4 million.
As per a VCCircle report, the new funding will be used to strengthen its technology and brand, besides expanding the team. The start-up was started in 2013 by Rajat Gandhi, Vinay Mathews and Nitin Gupta, provide a virtual marketplace where borrowers and lenders can interact directly and helps them in interest rate discovery.
With the help of its platform, one can directly interact with fellow borrowers/lenders, negotiate […] Read more
Peer-to-peer lending has been around for roughly a decade, sprouting in the U.K. and quickly catching on in the U.S., but it hadn’t existed in the Middle East until the launch this week of Beehive, a new business that aims at securing financing for small businesses in the United Arab Emirates.
The peer-to-peer lending concept is simple. It cuts out banks and lets people lend directly to one another (or, in this case, to businesses) in exchange for interest payments. Europe’s biggest peer-to-peer lender is called Zopa, which started in 2005; the largest ones in the U.S. are Prosper and Lending […] Read more