Peer2Peer Finance News

P2P lenders get ready for successor to CBILS

Publication: Peer2Peer Finance News
1st December 2020

This article states that the alternative finance industry is feeding into the latest government plans to formulate a new support programme for businesses impacted by the pandemic, which will be introduced after January 2021 once the coronavirus business interruption loan scheme (CBILS) and bounce back loan scheme (BBLS) end.

Katrin Herrling, co-founder of Funding Xchange, said the number of lenders funding deals through the platform returned to pre-pandemic levels in September and states “the problem for lenders is their balance sheets have reduced significantly. If you do not have money out the door then the new threat is from loss of income.” Katrin goes on to offer solutions to those SME’s that do not want to partake in extortionate value loans suggesting “a new scheme should close the gap where there isn’t lending and use the alternative finance sector to give them access to subsidised funding”.