Access to finance has long been cited as major barrier to growth for SME’s. Recent research by the government suggested that many businesses have struggled when looking for funding. Positive Money donor Daniel Rajkumar, discusses crowdfunding, how it works for lenders and businesses and introduces his platform rebuildingsociety.com allowing users to bypass the banks.
rebuildingsociety.com offers a new approach to fundraising by connecting lenders and borrowers to help realise better returns on their capital and lower rates on borrowing respectively. Businesses that apply for a loan must pass ID and credit checks, after which they receive a risk rating. Lenders can choose how much and at what rate, they wish to lend expecting to earn an average of 8.4% gross on their capital before deductions.
rebuildingsociety.com is Yorkshire’s pioneering crowdfunding service, an online hub of borrowing and lending activity. A highly valued business in the eyes of the seed investors, rebuildingsociety.com counts Gary Lumby MBE, Andrew Bolton, David Powell, David Aspland, Jeremy Wilson and Kenton Robins as directors on the board.
Top Screen Media CEO Achille Traore, says: “Borrowing from other local entrepreneurs has helped me to develop our service offering and allowed me to enter new markets and to win some significant contracts”.
The fusion of economic benefit with community-inspired support makes rebuildingsociety.com a first in its arena. Offering ‘interest with interest’, rebuildingsociety.com creates a community of investors with an active interest in the performance of the business in which they are investing.
“While the bank’s appetite for risk has weakened (due to their need to recapitalise) the appetite of lenders to earn a decent return is stronger than ever. As the banks continue to obstruct economic activity, rebuildingsociety.com offers a rewarding solution” concludes Daniel.
Positive Money members are invited to join the online community of lenders and to bypass the banks, lending directly to SME’s who pay them a return: https://www.rebuildingsociety.com