The association’s insurance coverage now allows members to arrange an unrestricted number of loans for P2P lenders.
The National Association of Commercial Finance Brokers extended its insurance for brokers to arrange an unlimited amount of loans with peer-to-peer lenders.
Members of the trade body must have insurance to cover claims of mis-selling from clients.
“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,” said Paul Goodman, NACFB chairman.
Some insurance companies restrict the amount of business that brokers can do with P2P lenders without jeopardizing their insurance coverage, with some confusing the lenders with payday lenders, Goodman said.
“There was a perception that peer-to-peer lenders placed onerous terms and conditions on how the loans should be repaid, and that this would make commercial finance brokers vulnerable to charges of mis-selling,” he said.
The association was established in 1992 in response to incidents of fraud and is the trade body for brokers who arrange finance for businesses.