Articles > Definition
Our definition of "peer-to-peer lending"
After careful deliberation the P2P money website
is proposing the following definition for "peer-to-peer
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
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.