Huddle is now considered a groundbreaking p2p (peer-to-peer) business lending platform. Holding our position in the already densely occupied industry, we have managed to stand apart from our competitors through utilising our core USPs of education and the ability to offer our lenders exclusive rewards.
Launched in March, Huddle was founded by Terry Fisher and Jay Tikam to bridge the gap between investors and borrowers, creating a network of information and nurturing the education of the investment community.
With backing from our parent company, Access Commercial Finance, Huddle has gone from strength to strength in under half a year, to offer our investors considerable and instant returns on their investments as well as helping individual and corporate investors lend to UK-based small and medium sized businesses.
The combined knowledge of the team behind Huddle amounts to over 200 years of collective experience. The breadth of this knowledge and the ability to leverage assets and networks of the parent company make our p2p lending platform a force to be reckoned with, in an industry that currently has a few core lending platforms that have occupied the majority of the market for such an extended period.
Huddle has already drawn a crowd…
Backed by members of Access Commercial Finance, our founders Jay Tikam and Terry Fisher bring their entrepreneurial expertise to not only offer a platform for keen investors to seek out new and high-return investments, but also a wealth of knowledge. One of our core USPs, outside of returns that can reach 16% (based on historical loans) and exclusive offerings for the core 100 founding investors, is a strong focus on education.
With the launch of a financial platform such as Huddle comes the ultimate responsibility to educate investors to make more informed decisions and understand how to make their money work harder for them.
Huddle has been turning heads and attracting previously loyal customers from our competitors, due to interesting and attractive introductory offers and the already proven track record of delivering an impressive 20% return on historical loans to Club Red customers in the first few months, just to reward them for investing initially.
How is p2p lending different?
The recent significant growth in alternative finance in the UK has led to an abundance of different options, for both lenders and borrowers. Crowdfunding and p2p lending are sometimes confused in the mainstream media, despite each having a significantly different meaning.
These two lending options share one common principle – that is raising financial backing from a number of investors, who lend a chosen amount each. The difference in these two principles arises when it comes down to how investors are repaid.
Crowdfunding typically involves selling a percentage ownership in a business, called equity-based crowdfunding. This method also offers the option of donating a final product to investors rather than actual repayment.
P2P lending, however, is an accessible and fast way of injecting a cash investment into your business. This method requires repayment of the funds, plus interest, with no equity given away, in a similar fashion to a traditional loan.
Why should you consider investing in business loans?
Business loans are typically considered safer when it comes to finding investment opportunities. That’s why Huddle chooses to focus on business lending. Our business loans offer returns immediately alongside competitive rates, which aim to provide lenders with a healthy return on their investment.
With banks rarely catering for small businesses requiring funding, p2p lenders often have a wealth of options when it comes to selecting a new investment opportunity to add to their portfolio.
Business loans are typically secured by the business property and additional assets such as machinery, equipment or stock. This layer of extra security is particularly appealing to lenders, offering additional protection to their investment. All of the loans on Huddle are underwritten and secured, which means all assets are valued providing the lender with extra securely.
What are the risks associated with business lending?
When we talk about any lending, it’s important to understand the risks associated with investments. Huddle strive to put systems in place to ensure that our members are not signing up to loans that are either unsecured or not underwritten.
SME lending, as with any investment, should be considered alongside the inherent risks involved. Business-to-business and peer-to-peer lending are not covered by protection from the Financial Services Compensation Scheme.
It is important to remember that borrowers may not be able to pay the interest on the loan, a portion of the loan or the complete sum of the loan, known as a default risk. To minimise the risks facing lenders, Huddle aims to provide full disclosure of all information provided by our borrowers, alongside a stringent underwriting process on every loan.
Credit checks are another basic process that we employ to ensure that borrowers have a positive and trustworthy credit history that shows low risks of their defaulting on future borrowing. To ensure lenders are getting the optimum clarification on their investment, Huddle Capital provides our investors with a running default rate of an entire portfolio, which is regularly updated.
Thought leaders in p2p sector
Huddle is striving to provide lenders with a multitude of secured investment options when it comes to P2P business lending. The educational approach not only provides a useful asset for financial novices or those seeking further clarification but also positions Huddle as thought leaders within our financial sector. Displaying the knowledge of the team behind our platform ensures that both lenders and borrowers feel their investments and loans are managed by a group of knowledgeable and experienced financial leaders.