UK peer-to-peer lending platform Zopa has opened its doors to businesses wanting to participate in the unsecured lending marketplace.
Zopa has moved to actively promote the online marketplace to businesses with spare capital as an avenue for generating good returns at low levels of risk.
The average returns to Zopa lenders - including business lenders - on money lent this year is 7% p.a. (after fees and any bad debt, but before tax), with lenders in certain markets earning returns of up to 14% p.a. Zopa claims a default rate of just 0.2% since it launched more than two years ago.
James Alexander, cofounder and UK CEO of Zopa says: "This opportunity for companies of all shapes and sizes, from all kinds of different industries, is perfect for those wanting to ensure their surplus capital is working as hard as it can for them, but without taking undue risk."