Consumer Credit Licensing
Some peer-to-peer, and peer-to-business, providers
do not allow companies to lend money (see
For business to peer lending you are required
to hold a
consumer credit licence as this is a legal requirement
for you to lend money as a business. Failure to
hold a valid license could invalidate all of your loans
and leave you and your company liable to prosecution,
so please follow the guidance from the
Office of Fair Trading.
For business to business lending no license
is required for companies to lend to other companies
(many thanks to
ThinCats for pointing out this important difference).
In addition a company can offset loan losses against
Corporation Tax and a Pension fund gets at least 20%
tax relief on loans which makes it a very attractive
way to lend.
Please view the
lending rates available.