BORROWER PRESS RELEASE

3 August 2009

FOR IMMEDIATE RELEASE

New system offers hope for borrowers with rates as low as 6.5%

With the economy in freefall, and research suggesting that 45% of businesses have seen the cost of finance rise, a Cheshire firm is aiming to make the 6.5% business loan a reality. Big Carrots, launched this week, offers a unique business-lending model in which firms borrow from each other and smart individuals, rather than the banks.

Sometimes known as peer-to-peer lending, the system sees members of the business community or even the man in the street lending small amounts typically £50 to £100 to other business borrowers. These lenders could be other businesses, someone who wants a better return than the cash rate of 0.5%, someone looking to diversify their portfolio or perhaps someone who wants to help local businesses.

A typical £10,000 loan for new machinery might come from as many as 200 investors. Other investors 'bid down' the loan, which can push rates as low as 6.5% much lower than the High Street lenders.

Businesses can borrow for as little as three months, making Big Carrots a great alternative to an overdraft and there's no penalty for early repayment. For peace of mind, all firms on Big Carrots have been rigorously risk-assessed, to prove they're creditworthy, and Managing Director Mark Ashton believes the level of 'bad debt' should be very low, at around 1%.

For those choosing to invest money, returns of between 5% and 8% should be possible although, in some markets, 14% or even 16% could be achieved. Investors spread their investment risk in £25 chunks and pay a low fee of just 1%.

Says Mark Ashton, We believe that business without the banks is the way forward. We'd even love business borrowers to encourage their employees, friends and family to contribute to the loan. That way, they can support their business. After all, they're the ones who know most about how good their trading prospects are. It all adds to the community spirit.

Businesses can register with Big Carrots at www.bigcarrots.com.