Interesting potential funding for SMEs in the future

YouBuyLocal

http://www.fundingcircle.com/
http://uk.zopa.com/ZopaWeb/

I hear Smallbusinesscan (not affiliated) is bringing out a version of these sites here. I think this is exactly what the country needs. Right now people don't trust banks or the government, but they want to trade with each other. This allows people to by-pass the banking system and get better rates of interest on their cash. Apparently Funding Circle haven't had a single default either. I really hope these things get established and really dent our two "pillar" banks.

meforever

great idea indeed but not if you like me have poor credit rating but great idea for new venture. But great posting well done

YouBuyLocal

I reckon your problem will be solved (not for you maybe, but for people in your position) in 3 or 4 years by the advent of the integrated web-based reputation and credit-system. Someone will take all of our reputations on E-bay or swap websites, as more of our activities go online, and it will make it far easier to track a persons credit-worthiness. It may be hard to envision it now, or understand what I mean, but ten years ago if you tried to describe today's internet (FB & social media, etc) you'd have a tough time. Today's internet is unrecognisable to that of ten years ago and in ten years time the internet will be unrecognisable from today. So I expect this form of lending to be extremely common in the coming years.

YouBuyLocal

Also, with this system it is easy to get your money out even if the debtors haven't paid it back. You just sell the debt onto another creditor and the site says that most sales go through within 2 days.

While I don't want to take everything they say on the site for granted, the principle is sound.

meforever

thanks for that advice