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Our definition of "peer-to-peer lending"

After careful deliberation the P2P money website is proposing the following definition for "peer-to-peer lending":

An arrangement made between two or more individuals (at least one borrower and at least one lender), arranged through an intermediary (e.g. Zopa, Funding Circle, RateSetter, etc.), where the loan is still valid and enforceable if the intermediary ceases to exist. The intermediary would perform all of the same functions as a bank, except that the intermediary it is not lending their money.

In addition, an arrangement made between at least one lender and the intermediary with a corresponding arrangement made between at least one borrower and the intermediary, where if the intermediary (e.g. Buy2Let Cars) ceases to exist the arrangement would revert to one between the lenders and borrowers.

We appreciate that the FCA uses a different definition for what they refer to as debt crowdfunding.