UK P2PFA Lending Platforms Top £10 Billion in Total Lending in Q3

The UK Peer to Peer Finance Association (P2PFA) has posted a note on an industry milestone. According to the P2PFA, member platforms have now surpassed £10 billion in total lending during the most recent quarter. The P2PFA states that over £900 million was originated on member platforms during each quarter of 2018.  The most pronounced growth is for online lending to small businesses.

The quarterly data, which for the first time includes statistics from CrowdProperty which joined the P2PFA in July, indicates that net lending flow of capital increased between the second and third quarters of the year.

The P2PFA was established in 2011 as a representative and self-regulatory group. The P2PFA sets a high standard of business conduct for member platforms while working with policy-makers and regulators to ensure an affective online lending industry.

Current P2PFA members are as follows: CrowdProperty, Crowdstacker, Folk2Folk, Funding Circle, Landbay, Lending Works, Market Invoice, ThinCats, and Zopa.

The P2PFa highlighted several points:

  • There is high demand from entrepreneurs to help with succession planning as they make plans to exit their businesses: Employee Ownership Trusts (EOTs) are becoming increasingly popular as employees get the benefit of shared ownership whilst exiting founders take comfort that the interests of employees are being looked after.
  • Across all lending sectors, there has been increased interest from institutional investors for loans to businesses, consumer and real estate lending markets are driving additional due diligence on platforms which enable co-investing retail lenders to benefit from loans

Robert Pettigrew, Director of the P2PFA, commented on the industry acheivement:

‘With this exciting milestone it is clear that the significance of the peer-to-peer lending sector’s contribution to the UK economy continues to grow in magnitude. Across the entire spectrum of small business, consumer and real estate lending, each billion facilitated by member platforms represents thousands of borrowers and investors helping each other achieve their goals – accessing the finance that they need or earning attractive returns.”


Aggregate levels of peer-to-peer lending by P2PFA platforms between Q3 2017 and Q3 2018:

 

  Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
Cumulative Lending £7,168,727,657 £8,033,329,880 £8,962,960,776 £9,982,437,304 £10,999,319,416
-o/w lending to businesses £4,440,151,180 £5,039,000,838 £5,669,559,956 £6,448,565,177 £7,204,410,255
-o/w lending to individuals £2,728,576,477 £2,994,329,042 £3,263,400,820 £3,533,871,127 £3,794,909,161
Base stock of loans (outstanding loan book) £2,958,326,435 £3,258,708,518 £3,530,634,586 £3,749,920,897 £3,994,953,650
-o/w lending to businesses £1,754,510,098 £1,971,666,313 £2,170,368,751 £2,328,839,798 £2,527,017,211
-o/w lending to individuals £1,204,816,337 £1,287,042,205 £1,360,265,835 £1,421,081,099 £1,467,936,439
New Lending £733,270,490 £836,982,950 £929,137,724 £1,019,091,811 £934,786,603
-o/w lending to businesses £472,393,077 £571,229,385 £660,076,506 £748,620,503 £673,749,570
-o/w lending to individuals £260,877,413 £265,752,565 £269,061,218 £270,471,308 £261,037,033
Capital Repaid £508,891,428 £551,968,213 £641,924,952 £757,864,189 £731,157,708
-o/w lending to businesses £337,105,103 £369,441,516 £446,087,365 £548,208,144 £516,976,016
-o/w lending to individuals £171,786,325 £182,526,697 £195,837,587 £209,656,045 £214,181,692
Net Lending Flow £228,055,356 £277,677,738 £287,533,338 £255,202,073 £263,036,509
-o/w lending to businesses £138,964,268 £194,451,870 £214,309,707 £191,386,810 £216,181,168
-o/w lending to individuals £89,091,088 £83,225,868 £73,223,631 £60,815,263 £46,855,341
Number of current lenders 134,658 138,829 148,222 150,385 148,834
Number of current borrowers 246,813 263,110 276,278 272,225 281,479
-o/w are businesses 43,425 48,834 54,485 43,682 46,996
-o/w are individuals 203,388 214,276 221,793 228,543 234,483

 

Cumulative P2PFA platform level lending data between Q3 2017 and Q3 2018:

 

  Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018
CrowdProperty         £23,013,692
Crowdstacker   £35,209,322 £37,714,968, £46,612,890 £51,265,724
Folk2Folk £176,419,805 £191,918,805 £212,510,805 £234,562,305 £257,130,306
Funding Circle £2,747,357,362 £3,093,910,983 £3,448,615,744 £3,806,000,000 £4,183,000,000
Landbay £59,561,822 £82,627,314 £109,445,017 £133,771,821 £182,891,798
Lending Works £71,699,386 £83,183,353 £98,772,559 £115,658,873 £131,862,745
MarketInvoice £1,201,857,191 £1,366,252,414 £1,611,099,422 £1,939,220,161 £2,213,027,735
ThinCats £254,955,000 £269,082,000 £280,174,000 £288,398,000 £294,091,000
Zopa £2,656,877,091 £2,911,145,689 £3,164,628,261 £3,418,213,254 £3,663,046,416
TOTAL £7,168,727,657 £8,033,329,880 £8,962,960,776 £9,982,437,304 £10,999,319,416
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