This month the spotlight has been turned onto the Alternative Finance space and explains the growing number of opportunities that allow investors to lend to both businesses and consumers using internet based platforms. We investigate lending on invoices with Market Invoice, lending to businesses to fund growth with RebuildingSociety and P2P lending to consumers via Ratesetter.
The UK Crowdfunding market was worth approximately £350m at the end of 2012, driven by consumers looking for alternative investment opportunities and startup firms looking for alternative sources of capital. But Crowdfunding itself is a very broad church, encompassing many different types of investments and asset classes, each with their own unique benefits and risks.
The FCA released its Consultation Paper CP13/13: “The FCA’s regulatory approach to crowdfunding (and smiliar activities)” on the 24th October. This article sumarises and analyses the main thrust of the proposals for interested parties such as platforms, providers considering raising money in this way or advisers who already have clients who invest in crowdfunding.
Peer to peer lending is the next big thing within the world of Alternative Finance, providing savers with an alternative source of income by lending to borrowers using online marketplaces. Platforms such as Zopa, Ratesetter and Funding Circle offer returns well above the average but what should investors look out for?
The rise of the internet and the rapid growth of new social networks online has opened up exciting, innovative ways to speculate on start ups and fast growing younger companies. Crowdfunding platforms in particular allow the experienced investor to bet on these hot new ideas for as little as £10 a go! But just how risky is this style of investing and what does the investor need to watch out for?