Register +

As one of the first platforms to receive its FCA authorisation, rebuildingsociety.com maintains a healthy relationship with the regulator. It has contributed to the various consultation papers which have helped shape regulation for the industry, while simultaneously developing various innovations including the BuyBack Guarantee and Director’s Loan Account IFISA.

Peer-to-business lending offers average net returns of 8%pa. You’ll be providing growth finance to businesses from all sectors and geographical locations of the UK SME market.

On current volumes, we can place £500,000 a month spread over 40 separate loans. As loan repayments are made by borrowers, further portfolio diversification occurs as new loans can be invested in.

We recognise that having an exit strategy is important, liquidity is strong on our secondary market. Loans re-sold at par or just above are typically sold within 1-3 days.

Peer-to-Peer Lending Opportunity

The P2P lending industry has now evolved into a new asset class that brings the lender one step closer to the investment, resulting in excellent gross returns, the ability to pick and choose loans and the flexibility to acquire and exit positions quickly and easily with low fees.

Our Underwriting Process

Every loan goes through the same underwriting process and all the business’ performance numbers input into our calculation are available from the figures published on the borrower’s loan profile and from external credit ratings agencies.

We use a combination of management accounts and filed accounts to measure loan affordability and the overall health of the business. This generates a score that falls into A, B or C categories. Applications that doesn’t meet the minimum C requirements are rejected or syndicated privately.

The type of loan security offered by the borrower does not impact our risk grading because this is an affordability score based on the health of the business. However, buyers can filter loans to exclude those without asset security.

Loan Security

Borrowers are required to offer security on our loans.

For loans up to £50,000 this can be a personal guarantee. For loans above £50,000 an asset must be offered by the borrower. When borrowers offer a personal guarantee, we ask them to fill out a Statement of Assets, Liabilities, Income and Expenditure (SALIE). This is signed as true by the borrower who receives independent legal advice.

When borrowers offer a charge on a residential or commercial property, we instruct solicitors to carry out checks on the title register to ensure the person offering the security owns the property. We also require the most recent mortgage statement and an independent valuation to estimate the loan to value ratio of the asset. If all of this information is to our satisfaction we will register a legal charge on the property on completion of the loan.

When borrowers offer a charge on a named business asset, such as a piece of machinery, we require an independent valuation from the manufacturer and an estimate of the likely resale value of the asset. We also need the asset to be removed from any existing asset debenture that may be in place.

When borrowers offer an all-asset debenture as security, we check that there are no other debentures in place, which are registered at Companies House. This entitles rebuildingsociety.com to become the primary creditor, should the business default on its loan and liquidators appointed to repay creditors through a sale of the business assets.

Fees

rebuildingsociety is responsible for all your loan administration, including debt recovery, unless you specifically tell us not to. When you buy loans through us, you’re buying the return only. 

We charge an account management fee of 0.1% per month.

There is a sale fee of 0.5% for lenders using the secondary market.

Systems Integration and Reporting

We have a comprehensive API available to all. For significant lenders, we will invest development time to integrate your systems with our platform.

API documentation is available here.

International Institutions are Welcome

We work with lenders from all over the world; please contact us if you have any difficulty with the registration process. Please remember that our client account is a GBP account. 

Contact us today about lending as an institution.

Please note:

Institutional lenders should be aware of a few things:

• we cannot offer preferential terms over retail investors
• we normally start with lending volumes of around £100k per month
• we are a small team based in Leeds, West Yorkshire
• due to the current health situation, we prefer videoconference meetings over in-person meetings

¹ P2PFA