Peer to Business Lending
Alternative Finance Sector Report - November 2014
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PEER TO BUSINESS LENDING
ALTERNATIVE FINANCE SECTOR REPORT
PUBLISHED
November 14
AUTHOR
Luke Jackson
Samantha Goins
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9 - Nesta: The Rise of Future Finance
The Liberum AltFi Volume index
tracks the amount raised on a monthly
basis by P2P, P2B and invoice lending
platforms in the UK. The market is
dominated by the top four platforms
(RateSetter, LendInvest, Zopa and
Funding Circle) which account for over
60% of funds raised over the last three
months. Platforms operating the more
established P2P lending model have
historically dominated the market,
with over 40% of funds raised to date
– although over the last 3 months P2P
has accounted for only 34% and been
overtaken by P2B lending which has
accounted for nearly 50% of funds raised.
What is interesting is the rate of growth
of those lending platforms that have a
focus on property backed lending as
their growth rate has been identified
by AltFi to be much higher in the last 12
months than traditional business and
consumer platforms.
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It is interesting to see the growth in the
number of consumers (lenders/investors)
participating in the UK alternative
finance market in recent years. By the
end of 2013 over 9.4m people in the
UK had participated in the market. This
represents an average annual growth
rate of 22% since 2011, which saw only
6.35m people involved in the market. If
the growth carries on at the same pace
there will be nearly 11.5m people actively
investing in the sector by the end of 2014.
Number of People Participating in UK
Alternative Finance
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2011 – 6.35m*
2012 – 7.69m*
2013 – 9.4m*
*Number of Active Investors/Donors
Liberum AltFi Volume Index (October 2014)
SOURCE:
AltFi Data
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20%
16%
12%
08%
04%
00%
RATESETTER
ZOPA
FUNDING CIRCLE
MARKET INVOICE
LEND INVEST
WELLESLY & CO
PLATFORM BLACK
ASSETZ CAPITAL
THIN CATS
CROWDCUBE MINIBONDS
FOLK 2 FOLK
LENDING WORKS
SAVING STREAM
FUNDINGKNIGHT
MONEY&CO
SYNDICATE ROOM
CROWD ROOM
REBUILDINGSOCIETY
CROWDCUBE
ABUNDANCE GENERATION
UK BOND NETWORK
2014
MARKET SHARE
P2P CONSUMER LENDING - 37.45%
P2P BUSINESS LENDING - 44.03%
INVOICE FINANCING - 18.16%
EQUITY CROWDFUNDING - 0.36%
