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P2P lending on track to reach £1bn milestone by 2014

Peer-to-peer lending is set to top £1bn by 2014 as frustrated businesses continue to seek out funding, says rebuildingsociety.com managing director Dan Rajkumar.

Incoming regulatory changes and low interest rates on savings accounts are also set to fuel an increase in peer-to-peer and peer-to-business lending which currently amounts to around £400m.

Rajkumar expects this figure to rise to £600m in 2013 and £1bn before 2014.

He says: “This industry is undoubtedly on the cusp of a huge growth curve. Those who have already reaped the rewards of borrowing and lending in this innovative way have confidence in the model. Adding an extra layer of security for potential users through regulation can only be a positive move for those yet to become involved.

“The exciting auction element of the transaction means lenders and borrowers will forever be seeing their returns rise and fall. At the moment, lenders would do well to shop around to make sure they’re not lending money at rates lower than the risk they see in the business or individual borrower.”

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