Peer-to-business crowdlending for investors

P2B Crowdlending
for Investors:
Benchmarks and trends report | 2014
www.fundingknight.com

Introduction.
So far 2014 has been a huge year for alternative finance
after FCA regulation and the prospective introduction of
ISA’s. As we move swiftly the latter stages of the year it’s
a good time to take a look at the stats and trends of peer-to-
business (P2B) crowdlending to give us an idea of the
behaviours and attitudes within this expansive market.
SME borrowers are flocking to
P2B crowdlending platforms as a
reliable alternative that gives access
to the funds required for growth.
The speed of such platforms allows
agile businesses to remain profitable
whilst managing the funding process.
This luxury could not be accredited
to high street banks who typically
prolong a loan transaction with
their strict criteria. Early adopters
amongst lenders are enjoying the
Page 1
rewards of P2B crowdlending by
making frequent transactions on
these platforms, whilst many are still
learning of how their extra funds can
be put to good use. 54% of people
are constantly looking for new ways
to invest, P2B crowlending adds
another dimension to an investment
portfolio. One that allows lenders
to benefit from an improved rate of
interest whilst supporting SME’s in
the UK.

Percentage of
HNW’s that would use
P2B crowdlending.
79%
Page 2
Using and
enjoyed – 48%
Would consider –
27%
Not now but
wouldn’t
rule it out – 25%
[None of the respondents claimed they would never
use crowdlending]
of high net worth (HNW)
individuals have used, or would
consider using, crowdlending.
P2B Crowdlending for Investors: Benchmarks & Trends Report I 2014

P2B Crowdlending
Page 3
Yes – 56%
Neither – 36%
No – 8%
Percentage of HNW’s
interested in new
technology.
53% New technology offers new
opportunities for business say
53% of HNW’s.

Men
49%
12%
39%
Women
56%
12%
32%
Yes
No
Neither
57% of investors take risks to achieve
higher returns.
Who takes risks
when investing with
P2B crowdlending.
50%
Just under 50% of HNW’s
take risks in investing because
they like the thrill.

P2B Crowdlending
Page 5
All personally
managed -
21%
3% of lenders are very unconfident
with their personal economic
situation.
Investment
manager –
66%
Both - 21% Other – 2%
How
investments
are managed?

Men
52%
33%
10%
5%
0%
Women
9%
33%
17%
9%
4%
37% of lenders claim their previous
business experience influences
their investment decision.
Children
Pension
Living Expenses
Reinvesting
Business
45% of lenders put their investment
returns into their children’s future.
How investment
returns are
allocated?

£20,072 The amount men invest per
year on average.
£0-
£2,000
2%
£2,000-
£5,000
2%
£5,001-
£10,000
50%
£10,001-
£20,000
31%
£20,001-
£30,000
7%
£30,001-
£40,000
5%
£40+
3%
62% of lenders won’t change the
amount they invest.
The amount
HNW’s
typically
invest per
year in £.

£30,000-
£49,000
The amount most P2B
crowdlenders have available
to invest.
£20,000-
£29,999
£30,000-
£49,999
£50,000-
£74,999
£75,000-
£99,999
£100,000-
£199,999
£200,000 -
£499,999
£500,000+
£10,000-
£19,999
100%
50%
30%
20%
10%
0%
85% more women have available
funds in the £200,000 - £499,999
bracket.
The funds
available
to investors.

Previous profitability
- 28%
A trustworthy
businessman - 24%
A good idea - 17%
Ability to review
accounts – 16%
External Factors
- 13%
Other - 1%
Trusting the business owner Don’t know - 1%
is twice as important for women
as it is for men.
What a lender looks
for in an SME seeking
finance.

Senior
management – 45%
Intermediate
management – 28%
Junior management
– 18%
Manual worker – 8%
Other – 1%
A borrower demonstrating previous
profitability is most important to a lender.
The profession
of HNW’s.

Sometimes – 60%
Not at all – 26%
All the time – 14%
33%
of men invest as they want to
make more from the money
they’ve accrued to date.
10%
of women invest as they like
to put something back into the
community.
How often
investments are
used to explore
unfamiliar industries.

The crowd.
P2B Crowdlending: Benchmarks,
trends and behaviours 2014 was
produced by FundingKnight with
support from One Poll.
This report is part of an ongoing
quarterly feature that aims to
provide the industry, existing
and new lenders, insights into
the way people engage with
P2B crowlending platforms.
The industry is experiencing
rapid growth and therefore
the landscape can experience
frequent change. With this report
we can keep our finger on the
Page 12
pulse of behaviours and attitudes
with an overview of how those
who make up the ‘crowd’
feel about it.
A total of 238 recipients from
around the UK representing high
net worth individuals from a range
of industries and experience with
crowdlending responded to
the survey.
This data was collated at the end of 2013.
Description
of the
business
Supplier of complete
home automation
systems
Sport and
athletics facility
providing sporting
opportunities to the
local community
Provider of
commercial buildings
to private and public
sector
Purpose
of funding
Increase sales
support
Funding for
business
expansion
Contract
fulfilment
Loan
amount
£40,000
£50,000
£100,000
Shield
rating
Avg rate of
interest achieved
by investors
11.35%
10.72%
10.97%
Here’s an example of three live auctions that recently
closed on our platform.

We are
FundingKnight
Start investing in British businesses today and
enjoy higher interest rates with P2B crowdlending.
REGISTER NOW TO INVEST www.fundingknight.com
Risk Warning
Investment through the FundingKnight lending platform involves making direct loans to companies. You could lose all or part of your capital. Selling
loan parts through our Loan Exchange is on a matched basis; there is no guarantee that sale offers will be purchased. Indicated returns, unless
otherwise stated, are shown before any provision for bad debts and may be subject to tax. We advise all investors through the platform to spread
their investments widely and thus avoid concentration risk.

Peer-to-business crowdlending for investors

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