As the Chancellor in his spring budget announced further amendments to business rates, Lendy, Europe’s leading peer to peer secured lending platform, calls for a more simplified system for small businesses.

Liam Brooke, Co-Founder of Lendy comments: “The further amendments made to business rates in today’s budget showcases the complexity of the system for business occupiers.”

“Very few small businesses would not want the system simplified.”

“In order to simplify the system it would be useful if business taxes were separated from a businesses use of property.”

“As more of the economy moves to the internet the idea of having business property and a major source of tax seems more and more un-anachronistic.”

ENDS

Notes to editors

Alternative finance providers, such as peer to peer and other crowdfunding platforms, are increasingly stepping into the gap created by traditional banks’ withdrawal. They are giving developers the opportunity to get their projects off the ground in a sensible timeframe.

Peer to peer lending is beneficial for investors, as well as developers, and people are increasingly turning to peer to peer in order to obtain a better yield from their investments in the current low interest rate environment.

For example, the average cash ISA at a bank now only offers annual returns of 0.74% (source: Bank of England). This level is extremely low and it is no surprise that people are looking for a better option.

The outlook for the property market is good. Despite traditional banks’ withdrawal from lending, it is important developers realise that other options are available to them. Peer to peer lending allows important development projects to go ahead and is beneficial to individual investors.

About Lendy

Lendy is one of Europe’s largest and fastest growing peer to peer secured lenders, providing property finance and development loans through its Lendy Finance brand. Since it was founded in 2012, it has grown to over 14,000 registered users. Investors on the Lendy Wealth platform have enjoyed a gross annual return of up to 12%, before tax, and received a total of £19 million in interest. Since inception, more than £250 million of funds have been provided for UK property investments.

All loans made through Lendy’s platform are secured by legal charge over UK property and loan amounts never exceed 70% of the properties’ Open Market Valuations undertaken by independent valuers; however, investor’s capital is at risk should a borrower default. Funds lent through a peer to peer website are not covered by the Financial Services Compensation Scheme (FSCS), although Lendy maintains a substantial discretionary provision fund to assist in making up any recovery shortfalls.

Whilst no Lendy investor has been subject to any loss of capital, past performance is not a guarantee of future performance. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Unallocated investor funds are held in a segregated client money bank account.

Lendy and Saving Stream are trading names of Lendy Ltd, a company registered in England and Wales under number 8244913 with its registered office and principal place of business at Brankesmere House, Queens Crescent, Southsea PO5 3HT. Lendy Ltd is authorised and regulated by the Financial Conduct Authority (FCA), number 654326, and is registered with the Information Commissioner’s Office (ICO), number Z3404040.