The future of UK Peer-2-Peer Lending

GROWTH STREET http://www.growthstreet.co.uk P2P UK Lending in 2014 Based on the Nesta UK alternative finance report 288% .. increase in P2P business lending in the last two years 9% ... of SMES have used a form of alternative finance £1,000,000,000 By 2015 alternative finance will provide over £1 billion to over 7,000 SMES 2.4% Equivalent to only 2.4% of gross national bank lending to SMES Who's borrowing? 9% 14% 14% 23% Leisure & Professional Retail Manufacturing Hospitality Services 7% 11% 7% 9% Healthcare Construction Wholesale Info & Communication Why are they borrowing? Expansion / Growth 47% Working Capital 34% Asset Purchase 18% Other 7% Awareness & Perceptions 44% of SMES are aware of alternative finance Positive Peceptions Negative Peceptions Expansion / growth Higher risk 56% 31% Speed Less secure 53% 23% Risk taking Lack of industry expertise 29% 17% Bright Future 5000 The alternative 4000 finance market is projected to grow by 152% by 2016 3000 2000 1000 2012 2013 2014 2015 YEAR * Projection based on growth figures of the past 3 years. 86% 96% .of borrowers will approach P2P .of borrowers would approach before their banks in the future. alternative finance even if a bank were to offer funding on similar terms. Factors Driving Future Development Cheaper funding Faster & less complex Regulation of the industry Platform longevity Acceptance of low quality applications Impact 70% ... of borrowers saw their turnover grow 63% ... increased profits 53% ... increased employment Were offered finance from a bank 22% Attempted to get a 79% bank loan before turning to P2P lending Nesta... GROWTH STREET © Copyright Growth Street Ltd. All Rights Reserved. For more information visit www.growthstreet.co.uk OBS £ MILLION