Zopa Starts Loans To Sole Traders
Zopa is now moving into new territory by announcing business loans to sole traders. The details are here. Here’s Zopa’s reasoning as reported by the article.
We’ve chosen to start our business loans with sole traders for two reasons:
1. We saw that there were few opportunities for smart sole traders, with a good credit and trading history, to access good-value loans.
2. Sole traders are often looking for loans of a similar size and time period as our personal loan borrowers so offering these loans doesn’t require big changes for our savers to the way they choose to lend
So will it make any difference to the risk of investing in Zopa?
I don’t think it will make much difference at all, especially as I suspect the profile of the sole traders they lend to, won’t be far removed from a typical Zopa personal borrower.
The only problem, I can see is that to support this new area of lending the Government is injecting millions into Zopa. What effect will this have on the rates lenders like myself get, I do not know or wish to predict!
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The Anonymous Widower 
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