Crowd Funding / Peer-to-Peer Lending

Crowdfunding, also known as ‘peer-to-business loans’, is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. It’s an innovative way of getting a loan for your business without going to a bank.

At the heart of this relatively new sector is the notion that everyone gets a better deal. With low-interest rates for savings, and a banking culture that views risk in a different light compared to previous years, it’s hardly surprising savers and borrowers are looking for alternatives.

It’s a simple enough process to secure funding:

 

  1. You apply to a peer-to-business lending platform who assess your application and make a decision within two working days.
  2. Based on its financial information, your business is given a risk band. Then a loan request page is automatically posted and promoted to the private lenders registered on the site in question.
  3. Lenders bid to lend you money. The more bids you get, the lower the rate of interest you pay. You can also encourage your contacts to lend and pay them a return ahead of a bank.

 

Through our lending partners, we can help you obtain unsecured loans of up to £50k and secured loans of up to £250k. If your application is successful, you can expect to have the funds in your bank account within a month.

The qualifying criteria are:

 

  • Terms of 6-60 months
  • Loan sizes £25,000-£250,000
  • Secured or unsecured loans available with fixed rates decided by the loan auction
  • Limited companies, LLPs, PLCs, and social enterprises are acceptable
  • Businesses must have been trading for at least two years and have two sets of annual accounts filed
  • We require sight of management accounts covering 60 days prior to the date of application
  • Minimum turnover of c.£200k p/a

 

For more information, contact our Specialist Finance Department on 020 7220 5100 or click here for more contact options.

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