Rebuildingsociety.com is a UK-based, Financial Conduct Authority (FCA) regulated peer-to-peer (P2P) lending platform that directly connects individual and institutional investors with small and medium-sized enterprises (SMEs) seeking business loans. Founded in 2012, the company's core function is to facilitate a marketplace for business financing, offering an alternative to traditional bank lending for borrowers and providing a fixed-income investment opportunity for lenders.
The platform operates on a fractional lending model, where multiple investors can fund portions of a single loan, thereby diversifying their risk. The name "Rebuildingsociety" reflects its mission to rebuild the financial ecosystem by creating a more direct, transparent, and mutually beneficial relationship between those with capital and the businesses that need it to grow.
Services for Borrowers (SMEs)
Rebuildingsociety.com provides a streamlined financing channel for UK-based SMEs that may be underserved by mainstream banks. Their primary product is the Secured Business Loan.
Loan Purpose: Businesses can apply for loans for a variety of purposes, including working capital, expansion, asset purchase, property development, and management buyouts.
Loan specifics:
Amounts: Typically range from ?25,000 to ?250,000, although larger sums can be considered.
Terms: Loan terms generally run from 6 months to 5 years.
Security: All loans are secured. This is a key feature of their model. Security typically takes the form of a debenture over the company's assets and/or a first or second charge over commercial or personal property. Personal Guarantees from the company directors are also required. This security provides a crucial layer of protection for lenders in the event of a default.
Application Process:
Initial Application: Businesses submit an online application detailing their funding needs, business plan, and financial history.
Credit Assessment: The Rebuildingsociety.com team performs a rigorous due diligence and credit assessment process. This includes analyzing financial statements, credit scores, and the strength of the security offered. Each approved loan is assigned a risk rating.
Loan Auction: Once approved, the loan request is listed on the platform's "loan marketplace." Lenders can then view the business details and bid to fund portions of the loan at a specified interest rate.
Funding and Drawdown: When the loan is fully funded by the crowd of lenders, the legal paperwork is completed, security is put in place, and the funds are transferred to the borrower.
Services for Lenders (Investors)
For investors, Rebuildingsociety.com offers the opportunity to earn interest by lending directly to British businesses. This provides access to an alternative asset class with potentially higher returns than traditional savings accounts, albeit with significantly higher risk.
How it Works:
Marketplace Investing: Lenders can browse the live loan marketplace, review detailed information about each business (including financials and the platform's risk assessment), and manually bid on the specific loans they wish to fund. They choose how much to lend and at what interest rate.
Buy/Sell Marketplace (Secondary Market): A key feature is the active Secondary Market. This provides lenders with a potential exit route before a loan matures. Lenders can list their loan parts for sale to other investors on the platform, offering a degree of liquidity that is not always available in P2P lending. They can sell at par, a premium, or a discount.
Potential Returns: Interest rates are determined by the auction process and the risk grade of the loan. Lenders receive monthly repayments consisting of both capital and interest. Gross interest rates are often in the high single digits or higher, reflecting the risk associated with lending to smaller businesses.
Risk Management:
Diversification: The platform encourages lenders to spread their capital across many different loans to mitigate the impact of any single default.
Security: As all loans are secured, in the event of a default, Rebuildingsociety.com's recovery team will work to seize and sell the secured assets to recoup capital and interest for the lenders. However, recovery is not guaranteed.
Default Fund: Historically, the platform operated a "Default Fund" (also known as a Provision Fund) to provide a buffer against losses, though reliance on this has changed with regulatory shifts. Lenders should always check the current terms.
Account Types:
Classic Account: A standard investment account.
Innovative Finance ISA (IFISA): This allows UK investors to hold their P2P loans within a tax-free ISA wrapper, meaning any interest earned is free from UK income tax.
Important Note: P2P lending is an investment, not a savings product. An investor's capital is at risk, and returns are not guaranteed. The platform is not covered by the Financial Services Compensation Scheme (FSCS).
Please note: This information is generated by AI. For legal use, verify with company sources.
