 | With its €998 million market value and its estimated 253% growth rate, the British P2P lending market is one of the fastest growing crowdinvesting markets in the world and the biggest in Europe. |
Last year the British Treasury announced its intention to introduce P2P lending in the personal savings allowance scheme (i.e. ISAs). One year later the authority confirms its intentions by declaring that from 2016 P2P lending will be included in the ISAs scheme, thus allowing to shield from taxes up to £1000 in interests received from borrowers. To ensure higher rate taxpayers enjoy the same benefits, but no more, their allowance will be set at £500. As a consequence it is expected the industry will undergo a further boost with many more individuals mobilizing their savings through P2P portals.
The good news for the British alternative finance sector is not over. In the last days, the managing director of the British Business Bank declared that by 2016 they want to have a scheme in place in order for banks to refer small firms rejected for loans to alternative finance providers. The Bank is already looking for P2P portals to partner with.
This follows the initiative announced last year by Britain’s finance ministry, which would require 10 banks including Royal Bank of Scotland, Barclays, Lloyds Banking Group and HSBC to offer businesses whose loan applications they have rejected a referral to alternative finance providers. Those four banks currently provide around nine out of every 10 business loans in the UK. However, British authorities understood early on the potential of alternative finance in the country and decided to support its development as well as to funnel it in the right direction, that is making it an alternative, efficient source of finance for SMEs.
Image credit to: Mark Colliton http://bit.ly/1anqq8R
The good news for the British alternative finance sector is not over. In the last days, the managing director of the British Business Bank declared that by 2016 they want to have a scheme in place in order for banks to refer small firms rejected for loans to alternative finance providers. The Bank is already looking for P2P portals to partner with.
This follows the initiative announced last year by Britain’s finance ministry, which would require 10 banks including Royal Bank of Scotland, Barclays, Lloyds Banking Group and HSBC to offer businesses whose loan applications they have rejected a referral to alternative finance providers. Those four banks currently provide around nine out of every 10 business loans in the UK. However, British authorities understood early on the potential of alternative finance in the country and decided to support its development as well as to funnel it in the right direction, that is making it an alternative, efficient source of finance for SMEs.
Image credit to: Mark Colliton http://bit.ly/1anqq8R
 | About the author - Irene Tordera Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives. During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem. |
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