UK Peer-to-Peer Business Finance Market Report 2021

Providing the most comprehensive and up-to-date information and analysis of the UK Peer-To-Peer Business Finance market, including the behaviours, preferences and habits of the consumer.

The credit environment that supported the significant growth in the P2P industry since the early 2010s has changed with the current pandemic and end of Brexit transition period, as well as wider global economic uncertainty, presenting a new challenge for lenders.

With the government-backed COVID support schemes having been accredited to several P2P lenders over the last 12 months, MBD expects the value of the P2P business lending market to have continued growing in 2021 and to have risen by a cumulative 127% over the last five years – from £3.42 billion in 2017 to £7.77 billion in 2021.

The sector achieved significant growth over each of the last five years, with estimated annual growth ranging between 10% (in 2021) and 99% (in 2017). Mainstream banks continue to treat SMEs differently from their larger counterparts in the terms and conditions they charge on loans – giving P2P lenders vast business opportunities. Furthermore, P2P lenders can still help fill the funding gap that exists for businesses that require working capital but do not meet the criteria for the government coronavirus support schemes.

P2P lenders continue to seek scale while also returning a profit, with several approaches used to achieve this. These have included diversifying product offerings and target audiences, expanding overseas, partnerships with large banks, partnerships with challenger banks, creating specific funds to encourage institutional investment and seeking banking licences.

Read on to discover more details or take a look at all of our UK Finance market research.

Quickly understand

• The impact of COVID-19 on P2P business finance and how lenders and borrowers will react to the new market conditions.
• How the P2P business finance market will adapt to the post-COVID-19 environment.
• The value of individual segments in the market in 2021.
• Business finance vs marketing.
• Business finance accounting marketing.

Covered in this report

Brands: Assetz Capital, Folk2Folk, CrowdProperty, Kuflink, ArchOver, Proplend, Ablrate, Rebuilding Society, Landlordinvest.

Expert analysis from a specialist in the field

This report, written by Lewis Cone, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

With simple processes and quick approval times, P2P is likely to remain in high demand and at a time when the UK is facing a looming debt crisis, investors will seek out more favourable non-bank returns – presenting a major opportunity for P2P lenders. Additionally, P2P business lenders will be poised to fill the funding gap between what mainstream banks are prepared to lend and the demand from small businesses, especially once the coronavirus support schemes come to an end.

Lewis Cone
Senior B2B Analyst