The Government has moved one step closer to including the proceeds of peer-to-peer (P2P) lending within ISAs as it launched a consultation on how best to implement the change. The move would allow people to lend to small businesses and receive tax-free returns of up to 6 per cent on savings.
‘We want to support savers at all stages of their life and make sure they have greater flexibility and choice over how they invest and access their savings,’ said David Gauke, the financial secretary to the Treasury.
Wolf Richter www.wolfstreet.com www.amazon.com/author/wolfrichter Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859, is not the biggest bank in Germany, but it’s the first bank to confirm what German savers have been dreading for a while: the wrath of Draghi.
The UK generated nearly $2.3 billion in peer-to-peer (P2P) loans in 2014, making its alternative lending market the largest in the world on a per capita basis. To illustrate, 72% more lending volume is transacted in the UK than in the US per person.
Peer-to-peer (P2P) and peer-to-business (P2B) lending are becoming an increasingly common choice as a source of raising the necessary capital to get projects off the ground and expand a business.
But according to the 2014 Nesta Report, only 44% of SMEs have even heard of P2B lending, let alone tried it.
What is P2P or P2B lending?
Peer-to-peer lending is essentially just another way of getting a loan, but instead of a bank being the facilitator, the investor of the loan is an unrelated individual known as a peer.