Published on October 12th, 2020 | by Jenny0
How Peer 2 Peer Lending could assist businesses survive COVID-19
COVID-19 has had a massive impact on businesses and this is set to continue with new restrictions to come in the very near future. In the UK the hospitality industry is worried, worried at the prospect of further restrictions on their ability to operate and the liquidity issues that could follow.
With the UK government yet to confirm the appropriate level of financial protection, the peer to peer lending industry could be set to take a bigger part in providing funding for businesses in the future.
Providing funding for businesses is what p2p is all about
The peer to peer industry is urging the government to take advantage of the alternative lending platforms as a way of providing funding and loans to businesses. Whilst large financial institutions have had to reorganize the way they work, the smaller peer to peer lending and other ‘fintech’ businesses are already fairly streamlined and this provides a good platform on which to launch a strong economic recovery.
The potential for peer to peer lending companies to step up has already been proved to some extent with the support they have offered to businesses earlier in the year.
How can peer to peer support businesses through Coronavirus?
When it comes to lending, many are wary of larger financial institutions and have turned to peer to peer lending as a means for funding ventures. With an increase in interest around consumer investing, there is also a renewed demand for customers wishing to invest in the market as a way of protecting their money from inflation whilst also improving on the current record low-interest rates.
If you have any further questions on the peer to peer lending market and how it can improve your portfolio, feel free to get in touch with us.