The firm has recently launched and operates in the alternative finance sector. It provides an online platform that connects businesses looking for finance with investors looking to achieve strong returns. Businesses submit their funding requirements to the site and are given a risk grading. Investors then pledge their funds and repayment conditions in a short time window with the best rates put forward as loans.
Loans through rebuildingsociety.com range from £2,000 to £50,000 and are provided to limited companies, limited liability partnerships, social enterprises and PLCs, with terms between 6 and 60 months. The firm is encouraging businesses not to borrow more than they need, instead enabling them to reapply or refinance very easily online and making borrowing in multiple stages more cost effective.
Crowdfunding, also often referred to as peer-to-peer finance, is quickly emerging as a way for businesses in the UK to sidestep the high street route to raise capital, with some forecasting that more than £200m will be lent to organisations and individuals in 2012.
Daniel Rajkumar, managing director of rebuildingsociety.com said: “If introducers are working to secure funding for their clients, they should consider crowdfunding because it’s fast, uncomplicated and rates are typically much lower than those offered by banks. rebuildingsociety.com wants to become a leading source of alternative finance in the introducer market so we’ve designed a process and fee structure to reflect that.”