A P2P platform for the creative industries

As we move into a new era for the Creative Advantage Fund (CAF), we are looking at how we can now best support the creative industries.  After nearly 20 years specialist financial support, we are now moving towards establishing a specialised peer to peer lending platform.

In the introduction to the Creative Industries Council 2018 report “Access to Finance”, Caroline Norbury, Chief Executive of Creative England
said:

“But experience has also shown us that this undercapitalisation is a far from intractable problem. As many members of the Creative Industries Council have shown, working with businesses from craft to video games, with the right finance and the right specialist support these creative businesses can make extremely sound investment propositions.

Industry, government and the financial sector need to work together better to make sure those ambitious businesses have the right skills to attract the right investment to support their ambitions for growth and in doing so the UK’s ambitions for growth in creative clusters up and down the UK.”

In response to this we at CAF are looking at new, flexible and affordable models of industry finance. Rather than long term equity investments, we now want to match creative businesses who have growth potential with opportunities for investors to lend capital. Peer-to-peer lending (P2P) is an enormous opportunity for both lenders and borrowers: in the Access to Finance research mentioned above:

“61% of creative businesses agreed that they were happy to use external finance to help the business grow and develop (compared to 51% on SMEFM) but 67% thought that lenders find their sector hard to understand and 61% that their sector struggles more than others to get funding.”

With a strong track record around finance and the creative industries, CAF can bridge that gap of specialised lending with sector-specific understanding.

For more information about the platform, or becoming a potential investor, please email p2p@creativeadvantagefund.co.uk