A couple of months ago, I had the opportunity to review the Rebuilding Society website. I had heard of crowd-funding and peer-to-peer lending before, so I was delighted to spend some time researching the concept. As I run a small business, it is always great to know the options that are available to us in terms of funding.
This time, I dealt with the Rebuilding Society as a lender, having £50 to lend to one of the companies listed on the Marketplace. I took a little while to choose a company to lend to, because I wanted to make sure that my money went to a company whose ethics I agreed with.
This is what I liked about the concept. Putting savings into a bank account earns a very low rate of interest these days. Other options include investing in the stock market or putting money into an investment fund. The problem I have with investment funds is that you can’t guarantee the ethics of the company that you are investing in. I have dealt in the stock market before but it is time consuming and risky, both things that I am unable to cope with at the moment.
The way that the Rebuilding Society is different is that all companies wishing to borrow money tell you about the company, what they do and their background. Each company is graded according to risk in categories A to C, with C being the most risky. As you would expect, the more risky companies borrow at a higher rate of interest.
That said, none of these are hugely risky businesses. They are not start-ups with no background and history, they are profitable companies who need a bit of extra capital to expand, branch out or take on another area of work.
I initially bid to invest in a company that related to photographic print, but I received an email after the closing date of the loan to say that there had not been enough interest in the company so I wouldn’t be able to lend to them. I therefore waited a little while to find another business that I liked the sound of. 
This time, I have bid to invest in a company called Exquisite Handmade Cakes Ltd. They have been given a C risk rating, so I know that there is more of a risk that my money won’t be repaid. That said, they make cakes. What’s not to love? The loan is for £50,000 for sales and marketing, and I know first hand how expensive that can be. But if invested wisely, £50,000 will go a long way for a small business and they can expect a great return on that investment.
Personally, if everything goes well, I will get an amazing rate of interest on my money. I have bid to lend to this company at their level C standard rate of 20%. This is so much more than I would get in an ISA that I will definitely be pursuing this avenue of investment in the future. I would also consider requesting a micro-loan if we were in a position to need to do so at any point.
Month: March 2014
Silent Sunday 23/03/2014
Read the beans book!
A couple of weeks ago, Libby was lucky enough to be sent two more of the beautiful Zoe & Beans books to review. The books are called “Hello Ladybird” and “We’re Not Scared”.
As always, both books feature really sweet, simple stories and gorgeous, brightly coloured, eye-catching illustrations.
Hello Ladybird follows the story of Zoe and Beans finding a ladybird, only to lose it again. Luckily enough, it turns up, just where you wouldn’t expect it!
We’re not scared is another lovely book that demonstrates to children that so many of the things that people are commonly afraid of are actually fine. Zoe and Beans aren’t scared of anything… but in a sweet little twist at the end of the book, they show that they do have a sensitive side as well!
Libby always loves the Zoe and Beans books, and each time she has some new ones I notice her taking in more and more from both the story and the illustrations. This time, she particularly loved looking for the ladybird. I know how much she enjoyed the books, because a couple of days after we’d last read them, we were sat on the bed in my room reading when Libby suddenly jumped up. She climbed off the bed and ran into her room, shouting “read the Beans book!”
Sure enough, back she came with one of these books in each hand. I think it’s safe to say that they’re a hit!
plutoniumsox 