Make your money matter. There are thousands of businesses in the UK that need funding to grow and expand. You can support them by lending money via our platform. Businesses issue loans on our platform so that lenders like you can purchase parts of the loan and help fund their growth. Its a win-win situation. Business get funding to grow and lenders get a high rate of return.

  • 3-5%
  • 5-7%
  • 8-10%
  • 11-14%
  • 15-25%
  • A
  • B
  • C
  • D
  • E
  • 25
  • 20
  • 15
  • 10
  • 0

Typical Returns by Credit Rating

Earn higher interest than banks

Banks are currently providing low returns on current and savings accounts. You can earn between 5 and 15% return from lending to businesses.

Please note that lending to small businesses puts your capital at risk.

Diversify your funding source

Businesses typically go to banks for funding, but thanks to regulation changes peer to peer lending has become a credible alternative. You can diversify your funding sources to include loans on our platform. Lending is quick and flexible for your business.

Define the terms of your business loan

Businesses can define the length of the loan, frequency of payment and type of interest payments. We work with you to define an appropriate interest rate based on your credit profile. We intend to run online auctions to define interest rates, but we cannot do this efficiently until we have enough investors.

Find other lenders using your social media accounts

Most businesses use social media to engage with and market their products and services. Our platform provides the functionality to share your loan with lenders in your social networks. You can invite your customers and encourage them to share the loan with their networks.

Payback Interest in cash or 'in kind'

Paper Street enables businesses to payback interest in either cash or 'in kind.' Many businesses choose to pay investors in products or services to encourage customers to lend. Payment in kind is cheaper for businesses and rewards faithful customers who are willing to lend.

How do we make money?

We are not a bank and as such we charge lower transaction fees.

We charge borrowers a percentage of the loan depending on the amount borrowed. See our FAQs section for our schedule

We charge lenders 1% maintenance fee annually on the loan principal. See our FAQs section for more details.

Frequently Asked Questions

How do I lend?

Loans are comprised of many ‘loan parts’ so that lenders can purchase small parts across many loans. As a lender you will be able to purchase a loan part during an auction period (typically 30 days) by the business. Simply press the purchase button in the loan site where you will be guided through transferring money to a Paper Street account in the amount being purchased. Lenders are required to quote the reference number given for the transaction to ensure that we can reconcile your money with your account.

How do I get repaid?

We will credit interest payments to your Paper Street account. You can withdraw credited money from your account at any time by request. We will transfer money to your bank account using the details you have supplied and verified.

How is the interest rate that I get paid calculated?

Interest rates for businesses raising a loan request are usually based on the credit risk profile, which is calculated using our proprietary risk rating model. Interest rates are also determined in conjunction with the current lending rates that the particular business currently borrows from banks.

How do I know my money is protected if I decide to invest?

P2P lending is not covered under the financial services compensation scheme (FSCS) and Paper Street does not offer compensation for loan defaults. We will, however, enforce security arrangements when there are defaults. We will fulfil our administration role by chasing collection of payments loans from borrowers using Paper Street Recoveries Ltd.