NACFB members can now arrange an unrestricted number of commercial loans with peer-to-peer lenders without jeopardising their insurance cover following collaborative work with Towergate Insurance and Funding Circle.
Until this month insurance companies have restricted the amount of business commercial finance brokers could place with peer-to-peer lenders for their cover to stay valid.
Paul Goodman, chairman of the NACFB, said: “Peer-to-peer lending is booming and it’s fantastic that our members can now use it as much as they like, safe in the knowledge that they enjoy protection arranged by NACFB Insurance Services.
“This makes NACFB’s exclusive cover the only policy in the market specifically designed for commercial finance brokers which covers an unlimited amount of brokered loans with peer-to-peer lenders.”
Neil Mullane, sales performance and commercial manager at Funding Circle, added: “We are delighted that the insurance market has recognised we provide businesses and finance brokers a greater choice beyond the traditional lenders, with flexible terms and no repayment fees.”
NACFB brokers must have professional indemnity insurance which covers them against claims of mis-selling from clients under the terms of the trade body’s membership.