A new lending threshold under the National Credit Act could stunt the ability of start-ups to obtain funding via online lending platforms in SA, just as such loans are growing.A new lending threshold under the act of zero rand, gazetted by trade & industry minister Rob Davies in May, will mean that investors who use peer-to-peer lending platforms and who lend to any business with an annual turnover of below R1m will have to register as a credit provider with the National Credit Regulator (NCR).The new threshold is expected to come into effect on November 11. Under existing rules, lenders need only register as a credit provider if they intend lending more than R500,000 to such firms.Peer-to-peer lending (also known as marketplace lending) allows borrowers such as small businesses to source loans on online platforms from individuals and companies.For local lending platform RainFin, which was launched in 2012 and in which Barclays Africa has a 49% stake, the new threshold will greatly ...
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