Peer-to-peer (P2P) lending seems to be gaining popularity as a way to fund small business projects. New research has revealed confidence in this method of funding is on the rise, as a quarter of respondents said they would consider lending to small businesses once the sector is fully regulated.
The sector should be fully regulated by next year. However, 17% said they would currently consider P2P lending without the need for additional regulatory protection.
Despite this, the study by rebuildingsociety found 24% of small businesses expect to struggle to access finance in the next 12 months.
The concept of P2P funding has become fairly well-known since the launch of of websites such as Kickstarter and Funding Circle, but a lack of awareness is still holding the sector back. Rebuildingsociety’s study found that 59% were unaware of the meaning of the term P2P lending.