Despite setback, peer to peer lending is good for small businesses

Following the collapse of Lendy in May of this year there has been a major concern as to whether the number of investors into peer to peer lending companies will also plummet.  If it does then this will severely restrict the amount of capital available to businesses wanting to borrow funds from sources other than major banks.  The consensus, however, appears to be that overall P2P has been good for small businesses and financial experts are largely in agreement that its benefits, along with its availability, will not be too compromised.

At Synergy our own experience of peer to peer lending has been good and we have seen a steady increase in enquiries and demand for this type of lending.  Thanks to our exceptional funding panel, that includes an impressive number of P2P specialist lending companies, we have been able to meet the vast majority of these requirements.  This has enabled us to provide valuable business funding at what are extremely competitive terms.

One of the major criticisms regarding the Lendy collapse is that the Financial Conduct Authority (FCA) gave Lendy the green light less than twelve months before it went bust.  Critics claim that the FCA should have been more vigilant and should have foreseen the difficulties in time to issue warnings to investors, who it is reported are now likely to receive only 58p in the pound for their investment.

The Lendy collapse, quite naturally, has triggered calls for an independent review of exactly what went wrong.  Nevertheless, the main view of the UK business sector, especially the SME sector, is that peer to peer lending is good for small businesses.  A partner at Deloitte contends that P2P is a ‘force for good’ provided that consumer interests are fully considered and that peer to peer lending companies do not ‘overpromise’ in an attempt to compete with banks.

At Synergy we have been monitoring the various arguments very closely and we think that it is safe to say we agree with the view that P2P has been – and will continue to be – an excellent alternative funding option especially for small businesses.

Because we have exclusive access to what is recognised as the UK’s biggest and most comprehensive funding panel – now numbering in excess of 200 lending sources – our national network of independent commercial finance brokers will be able to source the very best P2P deals for their clients.  Peer to peer lending is, and in our opinion will continue to be, a very valuable alternative funding option that is widely welcomed by SME companies.

With experience, diligence, care, consideration and yes at times caution … we believe peer to peer lending still has an important role to play in this country’s commercial finance market.  If you would like to discuss funding for your own company, including if appropriate peer to peer lending, please do not hesitate to contact us.  You can call us on 01904 481 786.  You can also email: or you can send a message using the online form on our Contact page.

AFS Group, Asset Finance Solutions & AFS Compliance
  • Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB
  • Tel: 01254 958777
Synergy Commercial Finance
  • Lindum Business Park, York Road, Elvington, York YO41 4XR
  • Tel: 01904 481786