• Loan based crowdfunding, consumer and business loans
  • Borrowing maximum £25,000 personal, £1mil business, £5mil real estate
  • Operates in UK and Australia (No mainland European service as yet)
  • Offers pension / investment schemes
  • Has a bad debts provision fund

Ratesetter is one of the first hybrid loan sites that offers both consumer and business loans. Each sector is differentiated by loan size. The amounts that they can fund are for personal loans up to £25,000, business loans up to £1M, and property development loans up to £3.5M. They have Government support via the British Business bank and claim to be able to process an online application within 2 weeks, offering no penalty for early repayment and terms from 3 months to 5 years

As with other UK based Peer-to-peer loan funding portals, Ratesetter is preparing to be able to offer investors the ability to wrap a Tax free investment around their investment. Similarly they are offering investors the opportunity to develop their investment portfolio within a Self-Invested Personal Pension (SIPP). The quoted rates of return vary from 3.1-6.4% depending upon how long you commit your cash for. Due to their Provision fund, no one to date has lost money with Ratesetter. Like other sites, the process to deposit cash is quick and simple to negotiate your way through.

Ratesetter has now expanded into Australia but has no European mainland presence yet. It was the first provider to launch a bad debt provision fund. Their published data shows about 25% of their investments being commercial and just over 10% property related, so their business model is still dominated by the personal loan market.

CRUCIAL is co-funded by the EU through ERASMUS+. Project: CRUCIAL (Crowdfunding Capital) 2015-1-IE01-KA202-00862The European Commission support for the production of this publication does not constitute an endorsement of the contents which reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein