A young entrepreneur from Leeds is launching a new crowdfunding website to offer better returns to savers and help SMEs access the finance they desperately need.
The fund-raising has valued the pre-revenue company at more than £2.5m. The website, www.rebuildingsociety.com, is still in beta mode and will begin by supporting businesses in Yorkshire and then expand further afield.
The entrepreneur also believes that local lending has several potential benefits, e.g. lender who makes a loan to a local restaurant is more inclined to visit the restaurant, which will help to ensure its success.
Rebuilding Society allows lenders to make loans of between £10 and £2,000 – with the average interest rate earned reflects the level of risk. Businesses can then borrow a minimum of £2,000 and a maximum of £50,000.