LENDER PRESS RELEASE

3 August 2009

FOR IMMEDIATE RELEASE

Unique new investment service offers up to 16% returns

Investors disillusioned with the current 0.5% cash-deposit rates could do worse than turn to a Cheshire firm that can offer returns of up to 16% for the man in the street plus business loan rates as low as 6.5%. Those are the figures that Big Carrots says are achievable for businesses and individuals signing up to its unique new lending and borrowing service.

Big Carrots service cuts out the banks, allowing individuals and businesses to lend to other businesses. It takes the concept of social lending and applies it for the first time to UK business. Anyone looking for an unsecured business loan would usually turn to the banks. However, with the banks cutting back on overdrafts and restricting their lending, the economy needs an alternative.

With Big Carrots, businesses borrow money from other businesses or investors, not the banks from as much as £25,000 down to just £10. With investors 'bidding down' the loan, rates can be as low as 6.5% much lower than the High Street lenders. Crucially, they can also borrow for as little as three months. This makes Big Carrots a great option for anyone who's been denied an overdraft and wants to sort out their cashflow.

The money for the loan comes in the form of pledges from investors 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. The pledges can be of any size, but typically will be £50 or £100 invested in firms that have all been rigorously risk-assessed for stability, to prove they're creditworthy.

For private individuals and businesses, the average gross return will be around 5% to 8% although, in some markets, returns of 14% or more could be achieved. The major appeal for lenders is that they spread their investment risk in £25 chunks and pay a low fee of just 1%.

Says Managing Director Mark Ashton, It's business without the banks, as our slogan says. We know the model works, because there are several social-lending websites out there that work well for individuals. We'd 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.