>>
THE FUTURE OF P2P
12
What’s the next phase for the industry?
MOTORING AHEAD
>> 18
Why P2P firms should consider car finance
HCG Funds’ Hadi Habal on opportunities in private credit
>> 16
ISSUE 51 | DECEMBER 2020
P2P lenders get ready for CBILS successor scheme PEER-TO-PEER lenders are gearing up for a successor to the government’s emergency lending schemes and are involved in early discussions this time round. It is understood that the alternative finance industry is feeding into the latest government plans to formulate a new support programme for businesses impacted by the pandemic, which will be introduced after January 2021 once the coronavirus business interruption loan scheme (CBILS) and bounce back loan scheme (BBLS) end. Applications for CBILS and BBLS were due to close in November but were extended last month until the end of January 2021. Chancellor Rishi Sunak had said in his winter economy plan in September, before the extension was announced, that a successor loan programme would begin in January. P2P industry figures are now hoping that the new scheme will be
introduced in February rather than another extension being granted. There was criticism when CBILS was first formulated earlier this year that alternative lenders weren’t involved in initial discussions. But Mike Carter, head of lending at P2P trade body the 36H Group, said platforms are feeding into these changes. “People are happy with the extension to January as there was a backlog,” he said. “The government is looking at bringing in something else longer term but this won’t be ready until sometime in
the new year. “CBILS had to be extended to fill that gap. “I think people are of the view that they should keep to the deadline and be ready to bring in something new.” Funding Circle, which was the first P2P lender to become accredited by the British Business Bank to provide CBILS, said it would welcome a new scheme. “By extending CBILS, the government is providing small businesses with much-needed support during an acute phase of the pandemic,” Lisa Jacobs, UK managing director for Funding
Circle, said. “As we look to the future, we welcome the successor loan programme, so smalland medium-sized enterprises (SMEs) can go on to invest, create jobs and drive the economic recovery.” The new lending scheme is not expected to retain the 80 per cent government guarantee which is provided for the value of CBILS loans. Stuart Law, chief executive of Assetz Capital, also an accredited CBILS lender, said he expects the successor programme will be ready >> 4 in February to
