AF members double peer-to-peer lending in 2013

Anglia Farmers’ member-to-member finance scheme lent £2.6m in 2013, more than double the figure transacted in 2012, which was its first year of operation.

AF Finance allows members with surplus funds to lend anonymously to other members needing short term finance.

Seventy-three members of the buying group borrowed an average of £35,000 on an unsecured basis through the scheme, paying 6% flat rate interest.

The amounts borrowed ranged from £5,000 to £167,000, mainly to finance input purchases. Borrowers pay a £100 set-up fee for each facility while the 40 lending members are expected to earn just under 5% through the scheme when final figures are calculated at the end of January.

The scheme was now seen by many as part of their regular cashflow funding and was a very flexible option for borrowers needing revolving credit, said chief executive officer Clarke Willis.

Awareness of the scheme was growing and he expected further expansion in 2014 – the transaction was simple and easier to set up than an overdraft extension.

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