Peer-to-Peer Business Finance - UK - November 2019
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- industrial
- November 2019
- UK
Description
Description
“The ongoing stagnation in bank lending to SMEs is in direct contrast to the continued expansion in SME activity. This lack of financial support from mainstream providers has resulted in more looking towards non-bank options such as P2P when seeking finance.”
- Lewis Cone, Senior B2B Analyst
This report will look at the following areas:
- New FCA rules come into effect from December but not all platforms are ready
- SME funding gap continues to provide opportunities
What's included
What's included
Databook- Executive Summary
- Infographic Overview
- PowerPoint Presentation
- Report PDF
- Previous Editions
Table of contents
Table of contents
Overview
- What you need to know
- Covered in this Report
- What you need to know
Executive Summary
- The market
- Market lending reaches record high in 2019 but growth is set to slow
- Figure 1: P2P business lending, 2015-19, by market value, (£ million)
- Property and construction receive most P2P funds
- Figure 2: P2P business lending, 2019, largest six sectors, (£ million)
- P2P loans most commonly directed towards the South East
- Figure 3: P2P business lending, 2019, largest six regions, (£ million)
- P2P business lending to rise by 98% to 2024
- Figure 4: P2P business lending forecast, 2020-24, by market value, (£ million)
- Companies and brands
- What we think
Issues and Insights
- New FCA rules come into effect from December but not all platforms are ready
- The facts
- The implications
- SME funding gap continues to provide opportunities
- The facts
- The implications
- New FCA rules come into effect from December but not all platforms are ready
The Market – What You Need to Know
- Market lending reaches record high in 2019 but growth set to slow
- Lending by sector
- P2P business lending to rise by 98% to 2024
- Market lending reaches record high in 2019 but growth set to slow
Market Size
- Market lending reaches record high in 2019
- Figure 5: P2P business lending, 2015-19, by market value, (£ million)
- Market lending reaches record high in 2019
Market Segmentation
- Lending by sector
- Figure 6: P2P business lending, 2019, by sector, (% of total lending)
- Lending by region
- Figure 7: P2P business lending, 2019, by region, (£ million)
- Lending by sector
Market Forecast
- Business lending to rise by 98% to 2024
- Figure 8: P2P business lending forecast, 2020-24, by market value, (£ million)
- Lower availability of business funding could see P2P account for over a third of all lending by 2030
- Business lending to rise by 98% to 2024
The Impact of the Economy
- Annual GDP growth falls to six-year low in 2018 and continues to fall in 2019
- Figure 9: Annual GDP growth rate, 2015-19*, (% change)
- Bank rate remains at 0.75%
- Figure 10: Bank rate, 2008-18, by date of adjustment, (%)
- Annual GDP growth falls to six-year low in 2018 and continues to fall in 2019
Market Trends
- Business confidence at an eight-year low as many continue to adopt a ‘wait and see’ approach
- Figure 11: Business confidence index, per half-year, Q4 2008-Q2 2019, (index figure)
- Credit demand and availability remains in negative territory for small businesses
- Figure 12: Availability of corporate credit provided to small businesses in the past three months, Q4 2013-Q3 2019, (net percentage balance)
- Figure 13: Demand for corporate lending by small businesses in the past three months, Q4 2013-Q3 2019, (net percentage balance)
- Average loan amounts rising whilst borrowing rates decline
- Younger and services-based businesses most likely to use alternative finance
- Business confidence at an eight-year low as many continue to adopt a ‘wait and see’ approach
Market Drivers
- Brexit impasse and the remaining prospect of a ‘no-deal’ outcome continues to affect lending plans
- Industry-led push to promote awareness and simplicity of taking out P2P finance aims to boost market development
- Brexit impasse and the remaining prospect of a ‘no-deal’ outcome continues to affect lending plans
Regulation and industry standards
- The Small Business, Enterprise and Employment Act
- The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001
- P2PFA Industry Standards
- FCA changes
Companies and Brands – What You Need to Know
- P2P loans now available within a SIPP
- Institutional funding becoming a key financing source for several lenders
- P2P loans now available within a SIPP
Industry Structure
- Industry development
- P2P loans now available within a SIPP
- ThinCats creates data models to help locate most viable business opportunities
- Lenders working on ways to protect investors against losses
- Market share
- Figure 14: P2P business lenders, cumulative lending and market share, at 30 September 2019, (in £ million and %)
- Industry development
Competitive Strategies
- ArchOver accelerates UK expansion
- Institutional funding becoming a key financing source for several lenders
- MoneyThing lowers its investor rates as it shifts its focus onto less risky loans
- ArchOver accelerates UK expansion
Company Profiles
- ArchOver
- Figure 15: Financial analysis of ArchOver, 2014-18, (£ 000)
- Assetz Capital
- Folk2Folk
- Funding Circle
- Figure 16: Financial analysis of Funding Circle, 2014-18, (£ million)
- LendingCrowd
- RateSetter
- Figure 17: Financial analysis of RateSetter*, 2015-18, (£ 000)
- ThinCats
- Figure 18: Financial analysis of Business Loan Network Limited (under the trading name of ‘ThinCats’), 2016-18, (£ 000)
- ArchOver
Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Methodology
Further Sources and Contacts
- Trade associations
- Association of Short Term Lenders
- Financial Intermediary & Broker Association (FIBA)
- National Association of Commercial Finance Brokers
- Peer-2-Peer Finance Association (P2PFA)
- Trade magazines
- Bridging & Commercial
- Business Matters
- Commercial Reporter
- Loans Insider
- Peer2Peer Finance News
- Trade events
- AltFi London Summit 2020
- Financial Services Expo London 2020
- NACFB Commercial Finance Expo 2020
- The Finance Professional Show
- Trade associations
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Market
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Consumer
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Brand/Company
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Data
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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.
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