News Briefing - Crowdfunding, SME And Alternative Finance

A horse race, used as a highly unoriginal metaphor for investing

1.UK – FinTech

AltFi reports on CBILs:

“You might have noticed a recent flare-up of SME anger on social media over the Bounce Back Loan Scheme (BBLS).

Complaints have ranged from the speed at which cash is being lent out, to new customers finding themselves struggling to be approved for the BBLS.

So what exactly is going on?

Having dug into the issue, there are two challenges facing not just fintechs and digital banks, but all lenders recently accredited in the government’s BBLS:

1. Drip-feeding of BBLS funds

 

The first challenge is the lending limit placed on BBLS-accredited lenders.

 

2. The new customer delay

Given the overwhelming demand for Bounce Back Loans, many banks have been forced to prioritise existing customers.”

 

2. UK – FinTech

P2P Finance News reports:

"CrowdProperty chief executive Mike Bristow has warned other lenders are risking damaging their reputations by withdrawing from the market during the pandemic.

It comes as the peer-to-peer lender revealed the level of demand to fund development loans on its platform has meant the past 10 projects have funded in 55.1 seconds on average, raising almost £3m.

 “Whilst we’ve significantly tightened our criteria, our strong direct route to market enables us to work with prospective borrowers to make sure that everything is ready, all elements are very well risk managed, and that in some cases they have more equity capital to put into the project,” Bristow said in a lender update."

 

3. UK – Alt-Fi

Alternative lender iwoca has finally received accreditation from the British Business Bank to provide SMEs with Coronavirus Business Interruption Loan Scheme (CBILS) loans, according to AltFi.

“The lender can now provide SMEs with loans from £50,001 up to £250,000 for existing customers with a view to bring on new customers eventually.

Iwoca is also offering CBILS backed overdrafts for SMEs already on its loan book feeling the coronavirus-related financial pinch.”

 

4. UK – FinTech

UKTechNews reports:

“Qadre, a high-growth fintech trusted by leading institutions to deliver certainty with blockchain technology, today announced a new research report in partnership with techUK that reveals a third of UK fintechs have lost vital funding due to equity management problems.

The report ‘Making fintech work for fintechs’ is based on a survey of 59 UK fintech founders and exposes the impact of complex equity management processes on business growth as well as the impact of COVID-19 on fundraising.”

 

5. UK – AltFi

The FCA has issued its finalised guidance, together with a feedback statement, following its consultation on measures to help insurance customers who may be in temporary financial difficulty (see our previous briefing). The guidance comes into effect on 18 May 2020. The measures will be reviewed in the following 3 months and may be revised if appropriate.

 

Full details here.