Folk2Folk has announced the launch of a new lower interest rate for Borrowers to help kick-start small businesses looking for capital in the post-Brexit marketplace.
Folk2Folk has launched the lower interest rate loan in response to the aftermath of Brexit in order to help businesses who are still looking for funding to grow and expand, but are concerned by the current economic uncertainty. Dependent on meeting certain criteria, Borrowers will now be able to draw upon a 5.5% interest loan, a reduction of 1% on the 6.5% rate Folk2Folk will continue to offer. The lower rate will help make capital more accessible and reduce the cost of a Folk2Folk interest-only loan by 15% per month.
Jane Dumeresque, Folk2Folk CEO, said: “Brexit has caused many small businesses to exercise more caution when planning investment in their business due to concerns over the wider British economy. We think that offering a lower rate option now is the responsible thing to do to help stimulate local economies.”
“Borrowers will be hard pushed to find a better all-round offer and few P2P companies can provide such a competitive interest rate. We are confident that the reduced rate can help play its role in helping small businesses access affordable finance to grow and expand. Lenders we have spoken to are supportive of us offering this new rate to re-energise local economies.”
Folk2Folk believes that its new 5.5% rate is one of the lowest on offer amongst peer-to-peer lenders for businesses looking for a fixed rate loan of over £35,000. Folk2Folk’s current 6.5% interest rate is secured against a 60% LTV and has the option of fixed or a three month ’Easy in/Easy out’ loan period. The new 5.5% rate is available for loans with a number of factors which include a lower LTV and applies only to fixed loans of one or two years. It will be attractive to those seeking lower repayments who have good quality security to put against the loan. Folk2Folks’s lending process is also faster than banks with the Borrower receiving a decision within 48 hours of the application and funds typically within 7-10 days of application.
Folk2Folk are one of the largest P2P business lenders in the UK, having introduced over £100million to local enterprises and businesses. Folk2Folk is dedicated to supporting local businesses by introducing investors seeking attractive and secured returns to local borrowers looking for affordable capital to develop and grow their business.