Peer-to-peer lending has the potential to kickstart the economy by providing credit for small businesses
Despite some encouraging signs, the UK economy remains in trouble. Growth remains weak and confidence fragile. Lending to small and medium businesses – the motor for job creation – has collapsed. A series of Government initiatives has so far failed to get the banks to start lending again. The result is that thousands of well-run and profitable businesses are struggling to get the money they need to invest, grow and hire more staff.
Even when loan applications are approved by banks, businesses complain about long delays and the high interest rates they are charged. Given the rock-bottom rates at which the banks can borrow themselves, this only adds to their anger. With British businesses so important to growth, this is deeply damaging to hopes for economic recovery.
Read More at The Telegraph