Platform lending, often referred to as peer-to-peer (P2P) lending, is a subset of crowdfunded debt where online platforms facilitate direct loans between individual or institutional lenders and UK property developers. Unlike traditional financial intermediaries, these platforms offer streamlined access to property development finance with competitive interest rates and simplified processes. Funding is often secured against property assets, with investors receiving fixed interest over the loan term. Developers benefit from quicker decisions and potentially more flexible terms, making it an increasingly popular route for bridging or short-term project finance.
Within the broader category of Crowdfunded Debt, platform lending introduces a more operationally distinct funding route, where deal execution, investor participation and drawdown timing are managed digitally through regulated intermediaries. For developers, this often translates into faster mobilisation of capital and more flexible structuring compared to traditional lenders, particularly on smaller or time-sensitive schemes. It is frequently considered alongside Bridging via Crowdfunders, given the similar short-term, asset-backed nature of funding, although platform models may involve a broader investor base and different pricing dynamics. Compliance obligations, including adherence to Money Laundering Regulation 2017, remain central to structuring and onboarding processes.
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