866-997-4948(US-Canada Toll Free)

PEER-TO-PEER BUSINESS FINANCE - UK - SEPTEMBER 2018

Published By :

Mintel

Published Date : Sep 2018

Category :

Banking

No. of Pages : N/A

P2P lending platforms must continue to attract new funding sources and new borrowers. However, achieving both at the same time is not a formality – platforms may have a strong supply of funding available but lack ‘high-quality’ or suitable borrowers, or vice-versa. A slowdown in either of these will affect the industry’s growth potential.

Table of contents
OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Market lending reaches all-time high in 2018
Figure 1: P2P business lending, 2014-18, by market value, (£ million)
Property and construction obtain highest amount of lending
Figure 2: P2P business lending, 2018, by sector, (% of total lending)
South East most common destination for P2P business lending
Figure 3: P2P business lending, 2018, by region, (% of total lending)
P2P business lending to rise by 75% to 2023
Figure 4: P2P business lending forecast, 2019-23, by market value, (£ million)
Companies and brands
What we think
ISSUES AND INSIGHTS
FCA review calls for greater transparency
The facts
The implications
The rising number of SME funding aggregators has been criticised
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market lending reaches all-time high in 2018
Lending by sector
P2P business lending to rise by 75% to 2023
MARKET SIZE
Market lending reaches all-time high in 2018
Figure 5: P2P business lending, 2014-18, by market value, (£ million)
MARKET SEGMENTATION
Lending by sector
Figure 6: P2P business lending, 2018, by sector, (% of total lending and £ million)
Lending by region
Figure 7: P2P business lending, 2018, by region, (% of total lending and £ million)
MARKET FORECAST
Business lending to rise by 75% to 2023
Figure 8: P2P business lending forecast, 2019-23, by market value, (£ million)
Platforms must attract ‘high quality’ borrowers and diversify to continue growth
Mainstream lenders react to emerging alternative finance threat but collaboration could still occur
THE IMPACT OF THE ECONOMY
GDP growth rebounds in Q2 but challenges remain
Figure 9: GDP growth rate, Q2 2014-Q2 2018, (% change on previous quarter)
MARKET TRENDS
Business confidence turns positive in Q2 2018 which will influence demand for finance, but uncertainty remains
Figure 10: Business confidence index, per half-year, Q4 2007-Q2 2018, (index figure)
Credit demand and availability rises for small businesses
Figure 11: Availability of corporate credit provided to small businesses in the past three months, Q3 2012-Q2 2018, (net percentage balance)
Figure 12: Demand for corporate lending by small businesses in the past three months, Q3 2012-Q2 2018, (net percentage balance)
Nearly half of SMEs have never checked their credit score
Lenders shift focus to recurring revenue
MARKET DRIVERS
Brexit uncertainty still affecting lending environment
Accountants could help drive further growth in P2P lending
Open Banking initiative should drive product and service innovation
Lack of suitable SME finance offers significant opportunities
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
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Institutional funding on the rise in the sector
Some lenders have scrapped manual lending in favour of automated lending
INDUSTRY STRUCTURE
Industry development
Institutional funding on the rise in the sector…
…with IFISAs also providing a funding boost
Market share
Figure 13: P2P business lenders, cumulative lending and market share, (in £ million and %)
COMPETITIVE STRATEGIES
Some lenders have scrapped manual lending in favour of automated lending
Lenders seek to specialise in certain product areas
COMPANY PROFILES
ArchOver
Recent company activity
Financial information
Figure 14: Financial analysis of ArchOver, 2014-17, (£ 000)
Assetz Capital
Recent company activity
Folk2Folk
Recent company activity
Funding Circle
Recent company activity
Financial information
Figure 15: Financial analysis of Funding Circle, 2012-16, (£ 000)
LendingCrowd
Recent company activity
ThinCats
Recent company activity
Financial information
Figure 16: Financial analysis of Business Loan Network Limited (under the trading name of ‘ThinCats’), 2015-16, (£ 000)
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 2019
Financial Services Expo London 2018
NACFB Commercial Finance Expo 2019
The Finance Professional Show

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *