Alternative lender FundingSecure says peer-to-peer lending is becoming more mainstream following the receipt for its largest ever loan request which had been turned away by the banks.
The application was for £40,000 on a £100,000 yacht from a business owner whose current cash flow problem had been exacerbated by the uncertainty of current banking policy.
Co-founder of FundingSecure Richard Luxmore said: “Like many of those who come to us this client was being massively let down by his bank.
“He had tried mortgaging his boat but the process was taking far too long. In the end he turned to us because he felt that the peer-to-peer system could offer extremely competitive terms, speed and convenience.”
Luxmore said there had been a lot of talk about banks being vigorously encouraged to lend to businesses but little of this had resulted in any “actual” action being taken to improve the situation.
Luxmore added: “These days the idea of a pawnbroker being merely a port in a storm for the seriously strapped for cash small borrower is long past. Online services are now lending serious amounts of money to serious businesses.”