Peer-to-business lending platform rebuildingsociety.com has successfully raised funds for two businesses through its online community of lenders, totalling £55,000.
Mowbray & Son Ltd, a Lincolnshire-based building company that works on public sector contracts, secured £50,000 of working capital from rebuildingsociety.com’s community of lenders, with over 30 lenders contributing to the total amount.
The loan is repayable over five years with lenders repaid monthly. Amounts loaned ranged from £10 to over £1,000 and lenders offered rates between 6% and over 15%.
Hall Business Group, which required funds to translate a business book, borrowed £5,000 and will repay the amount over six months.
Daniel Rajkumar, who founded rebuildingsociety.com said: “We’re delighted to have facilitated these two loans. Our proposition is simple – through our platform we connect profitable businesses that want a loan with individuals who want to earn a good rate of return on their capital by lending as part of a crowd.
“Borrowers are UK businesses of all sizes. Their biggest barrier to growth is finance, but with alternative sources like rebuildingsociety.com emerging, there is no reason why well-run businesses should have their growth plans curbed.”
Rebuildingsociety.com currently has six businesses looking for funds at the moment, with requests totalling nearly £250,000.
The peer-to-peer platform pays introducers a fee of 1.5% for every referral business that completes a loan.