Yesterday, £2.26m of capital was repaid to MoneyThing lenders, following the refinance of the Wigan hotel loan. The loan was originally a development loan to build a hotel under a Holiday Inn franchise. The hotel began trading earlier this year and once they were able to demonstrate their trading history, the borrower refinanced to a mainstream lender.
Sophie Pearce commented “This is a great example of how MoneyThing lenders can really make a difference to small businesses in the UK.”
A long-standing MoneyThing lender commented “I’m always happy to support projects like this one and to contribute to the success of the development. I earned a good return from it too. MoneyThing remains one of my favourite platforms and I’ll be reinvesting my capital on the platform.”
The refinance of the loan to the mainstream lender took much longer than anticipated to complete which shows the difficulties and delays that small businesses still face in finding mainstream finance.
The importance of P2P lending continues to grow to fill the gap left by banks. The P2P Finance Association last week reported that in Q2 this year, the P2P lending industry contributed over £1 billion to the UK economy and that net lending from P2PFA members outstripped bank lending by £60m*.
P2P Finance news have published their annual list of the industry's top 50 influencers. Following last year’s mention for Ed Pearce as a rising star of the industry, this year, MoneyThing’s MD Sophie Pearce has made the top 50 list. The list is compiled after consultation with industry stakeholders and includes government agencies, lawyers, trade bodies, consultants and of course the platforms.
"Sophie Pearce, managing director, MoneyThing
Pearce has more than a decade of experience in marketing and business development, with an MBA from Ashridge Business School, which has helped her grow MoneyThing into a popular P2P business lender offering some of the highest IFISA-eligible investor rates. The platform’s great customer service is heralded by its loyal investor following."
Bad news for money launderers as Security minister Ben Wallace told MPs on the Treasury Select Committee that the UK will be able to get even tougher on dirty money after Brexit. This is because the country will no longer have to gain approval from the rest of the EU before imposing international sanctions on suspects. Mr Wallace also said the City of London “has to have a reputation for cleanliness and security as a way to survive outside the EU” and with the increasingly global reach of US anti-corruption laws British firms will risk significant fines if they do not make sure their clients are clean.
He also alluded to the breadth of money laundering extending beyond financial institutions to sports enterprises. "The sports industry is as susceptible as anything else to dirty money being invested or their organisations being used as a way to launder money." Currently, he knows of football clubs under investigation and earlier this month across the English Channel, authorities in Belgium raided a number of top- flight clubs and charged 19 people with offences linked to alleged money laundering and match-fixing.
On the 12th of November, the Bank of England will launch a competition aimed at students in full time education. The institution is looking for new ways to incorporate Financial Technology to enhance people’s lives as, they point out, much has changed since their incorporation in 1694. The prize is a four to six weeks internship at the Bank of England and the competition is open to individuals or teams.
Full details available on their website (under Read More).
Ten years ago, Bank interest rates stood at 5%. Today they are .75% but some will remember back to the second half of the last century when they reached a giddy 17% (November 1979). Those days don’t look like returning in the foreseeable future, so what should you do with your savings?
Bond Mason have just conducted a poll to see where savers are putting their money with such historically low rates from banks. 22% thought that putting their money anywhere but with banks was too risky, and 9% were unaware of other options. Perhaps more worryingly, 14.5% have increased the amount they hold in savings in banks, but another 23% are investing more in shares.
With rates expected to stay low for the next ten years, investors need to consult independent financial advisors and do a bit of research themselves to make sure their hard-earned savings don’t get swallowed by the effects of inflation.
The Bank of England’s latest report for August offers as its key points:
o “Household borrowing growth moderated slightly in August. Annual consumer credit growth slowed to 8.1%, while secured lending growth ticked down to 3.1%.
o The number of approvals for re-mortgaging, which has been volatile in recent months, increased to 53,125 in August.
o Net finance raised by private non-financial corporations (PNFCs) remained positive in August. Within this, net bank lending to businesses was positive, whilst finance raised through financial markets was negative.
The total amount outstanding of businesses’ borrowing from … sources increased by £3.2 billion in August. Within this, net finance raised from banks remained positive, but weak, at £1.0 billion. There were net redemptions of funds raised through financial markets, however, indicating that repayments were larger than new issuance on the month. There was a £0.9 billion net redemption of bonds, as well as £0.4 billion of commercial paper and £0.2 billion of equities.”
Bank of England August-2018