Here at White Label Crowdfunding (WLCF) we have helped a lot of people (from a lot of countries) explore the possibility of launching their own peer to peer lending business. We thought we’d share some reflections on how these conversations typically progress, and what the key points usually are.
Generally, the first conversation we have is a very broad one. The entrepreneur/business that has got in contact will have a concept in mind for a peer to peer lending business and are wondering how best to tackle the challenge of putting a technology platform in place.
‘Build or buy’ is a scenario that many businesses face when building their infrastructure for launch. Typically an outsourced technology option will be cheaper but won’t enable as much bespoke functionality as building your own platform.
Things are a bit different with WLCF, because our platform has been built over the last 3 years and uses some of the most flexible web-based technology available. When you combine this with the fact that we have a proven track record of building and launching peer to peer lending platforms across a range of countries and business models, we’re able to put forward a pretty compelling case.
We also invariably find our opinion being sought about the business model that is being planned. We’ve spoken to such a broad range of people we’re familiar with numerous variations on the core models, and we know what the key challenges and considerations are for each. This is a very innovative sector though, and there are new ideas and approaches being developed all the time, so it’s fascinating talking things through with people in these early stages.
From our perspective, the key challenge lies in recognising those people who are the most likely to progress with their project
The key questions we ask ourselves are:
• Are they clear about the type of business they intend to build?
• Do they have a business plan and funding in place?
• Has a realistic target launch date been identified?
• Is this new venture going to be the sole focus as opposed to a side project?
If the answer to all these questions is yes, then in our experience this is a project that has a very strong chance of progressing.
Most of the other conversations we have are followed by a period where the above points are being worked on. Many of these projects will eventually progress, some won’t. We can’t be certain what will happen as there are many influencing factors, so we make a point of keeping in touch and ensuring that we are providing updates on new functionality and other enhancements being added to our platform week on week.
What is certain is that there is a lot of opportunity in the peer to peer lending industry and there will continue to be a strong amount of interest from potential new market entrants over the coming months.
If you are thinking of launching a peer to peer lending business, click here to complete our initial enquiry survey.