"Ethical loans" from Zopa?

[Cyclone]

It's not, and not just because of the cost of setting up a company. If the primary business is lending then it needs to be licensed, when I first checked any lending at all would need that license (they emailed me sometime later to say that this had changed). The license costs about £500, meaning you'd need to lend a huge amount to make it worthwhile if it were you primary business.

It's still worth considering for any small business owner though, most business accounts currently pay the grand rate of 0%. If you can commit to fixed term bonds you might manage to find 2.5%, which is still pitiful, so putting some of your funds into Zopa is an alternative to consider.