We can approve your application very quickly and get you listed on the platform. The time it takes to list you on the platform can take between 2 days to a few days, depending on your response time on any additional information we might need.
It will then normally take 2-3 weeks to get your loan, depending on the demand for your project or business opportunity.
The greater the public appeal, reward offering, interest rate or marketing activity for your campaign, the faster your loan is funded.
It costs nothing to list on the platform and we only take a fee once you have raised a successful campaign. We take a 5% fee for the first £500,000 and 2.5% for any funds raised after that. This fee is taken from the funds you raise automatically.
If you do not reach your target, we are happy to release the funds. The fee will always be calculated on the final amount raised.
The interest rates vary from 6% APR to 15% APR. Our average interest rate is an estimated 8.7% APR. If your business is lower risk for investors, you will generally be offered a lower interest rate by our credit risk team.
Simply complete the online application form – it only takes a few minutes and it's designed to be very easy and use friendly. The first stage is to register on the platform; you can do that from here. When you’ve registered, you then need to complete our simple loan application.
When we receive this information, our due diligence team will immediately review your application and respond within 3 days. Your personal account manager will give you a call to discuss your campaign and the financial offer.
While your application is being reviewed, we welcome you to create your campaign page, which will be used to help promote your business on our platform and social media channels.
To apply for a loan we will need to see three things:
- Last 3 months bank statements
- Latest filed account, or management accounts
- At least 6 months profitability
We need to see that you are financially healthy enough to afford the loan.
We are happy to have a look. If we cannot do the whole amount at this moment in time, we can create an initial campaign for the amount you can afford and check on your financial health in a few months.
We find that this sometimes works out better as you may not need the other part of your initial loan and, therefore, you save money.
The Exchange is a secondary market where investors can sell their investments (loans, bonds, equity) to another investor in order to access their capital before the investments maturity. It does not affect your investment. We will manage the transfer of the investment to the new investor seamlessly.
If you don’t reach your funding target in time, you can either extend your campaign or take the funds that you have already raised and we can create a second campaign for you to fund the amount missing.
The investors are private individuals who have chosen to support and help grow businesses. Many of the investors are high net worth individuals who can convert into customers. All investors who invest more than £2,000 are checked from a security and compliance perspective.
For our higher net worth investors, we have an Investor Member Club.
There are four tax incentives available from HMRC.
EIS and SEIS are the main tax incentives and allow investors to claim some of their investment back from the government. These tax incentives are generally for earlier stage businesses who are unable to access debt finance.
SITR is another tax incentive for social enterprises.
Businesses seeking to apply for these tax incentives should look at the HMRC website and the relevant application forms.
The IFISA is a tax incentive for investors, created to incentivize investment into businesses listed on our platform.
Security from cyber attack is one of our priorities. The Crowd2Fund platform has been carefully built to protect you, your finances and your data against security threats. Many of our processes go above and beyond what other websites may offer, e.g. we use mobile authentication for all transactions.
We’ve also arranged for a third party testing company to review our platform on a regular basis to identify any gaps in our security.
Crowd2Fund is the only platform of its type directly authorised and regulated by the Financial Conduct Authority (FRN 623683). Crowd2Fund Limited is registered in England and Wales. Registered No. 08472687 Registered Address: 242 Acklam Road, London, W10 5JJ.
Crowd2Fund takes compliance very seriously; you can look at our permissions on the FCA website
Of course. We would be delighted to help your business grow. It’s why we set up Crowd2Fund in the first place.
We offer a range of pre- and post-investment support, tools and services. You can read all about them here[link] or call one of our friendly managers for advice.
There are no early repayment fees or associated charges. We do, however, have late repayment fees.
You’ll only pay interest for the duration of your loan, which must be paid back to its full amount, including interest.
If you are having trouble with your loan, we are here to help. You are also in charge of informing your investors of any possible late repayments or issues with said repayments.
To pay back a loan early, simply contact our support team.
If you miss a repayment you may be charged an administration fee. It’s really important your investors are paid on time, or at least informed of the reasons behind your late repayments.
We conduct thorough due diligence and credit worthiness checks on your business, similar to any other lender to ensure that the finance can be repaid to your investors. We also conduct other checks from a fraud, security, and anti-money laundering perspective, as well as ID checks.
If you’re interested in our approach to due diligence and would like to know more, then please feel free to contact us.
The Innovative Finance ISA was launched on the 6th of April 2016. Under this new scheme, investors’ earnings from crowdlending and P2P investments will be exempt from tax for investments of up to the value of £15,240 for this current financial year.
The estimated average return for the Crowd2Fund IFISA is 8.7% APR, higher than most other ISAs on the market. This is because investors are lending directly to hand picked opportunities and cutting out the middle men. The overall IFISA return may vary slightly depending on the investment opportunities selected by investors. The estimated 8.7% APR return is calculated before fees and bad debt.
Crowd2Fund collect a 1% fee of the total repayment when the repayment is made, this has a nominal impact on the actual return. Bad debt should also be taken into account with the actual APR received. Currently written off and defaulted loans are at 0%. Our target default rate is 0.5% and this should be taken into consideration when investing. Past performance and forecasts are not reliable indicators of future results.
It’s important investors understand that by investing in an IFISA they are putting their capital at risk, in a similar way to a stocks and share ISA. If an opportunity they invest in fails and the funds are not recovered investors will lose their investment in that business. Therefore, it is important to invest in a number of different opportunities to manage the risk of losses.
Read more about how we estimate our APR here
Investors activate their IFISA simply by registering to the Crowd2Fund platform and clicking the 'Activate my IFISA' button on the portfolio page. Investors are then requested to provide their National Insurance Number.
We do the rest, and inform HMRC about your Innovative Finance ISA. Register here.
If you don’t want to apply or transfer via the website you can also download the form here. Simply complete the form and post it to us at our address: 242 Acklam Road, London, W10 5JJ
All opportunities listed undergo a due diligence and a strict credit assessment process. Investors select the opportunities listed on the platform that they wish to invest in. Investments have a pre-defined interest rate which is clearly shown, between 6% - 15%, averaging at 8.7% APR. Investors simply select an opportunity that has been carefully hand-picked and approved by Crowd2Fund and make the investment using a direct bank transfer or debit card. Investor funds are held securely in our segregated 3rd party client funds account.
All repayments are made back to investor Crowd2Fund accounts on a monthly basis. After investors have activated their IFISA, any lending on the platform will be automatically allocated towards their IFISA allowance until the limit has been met for that year.
Any opportunities listed are profitable businesses and can afford the loan repayments. All opportunities undergo our strict credit risk assessment process. This involves background checks on all directors and companies. We review historical performance of the business along with market performance. Where possible, we secure the loan against company assets and always ask for a company director to personally guarantee the loan. This means that the director’s assets can be seized in the event of a default. If a loan is secured or has a director guarantee then this is clearly indicated on the opportunity page. Read more information here
If investors wish to transfer their cash ISA or stocks and shares ISA to Crowd2fund then they need to complete the "Transfer Authority Form." The form can be downloaded from here or can be obtained by emailing firstname.lastname@example.org. Once the completed form is received, we will liaise with investor’s previous ISA manager to transfer a Cash or Stocks and Shares ISA to us. In case investors change their mind, they will get 14 days cancellation rights. There is no fee for opening or transferring an ISA to us.
If you have multiple years’ worth of savings within your ISA you are able to transfer these and continue earning tax free on Crowd2Fund. There is no fee for setting up an IFISA on Crowd2Fund.
There is no fee for opening an Innovative Finance ISA account. We only collect a 1% annual fee on interest and capital payments to the investor. This fee is collected every time a repayment is made back to your Crowd2Fund wallet.
Security is our topmost priority. The Crowd2Fund platform has been carefully built to protect you, your finances and your data against security threats.
For your account security, we will send security codes by text message as soon as you have made a pledge to a campaign, when your funds process is completed or repayments have been processed.
We use text messages to inform our investors of the latest Crowd2Fund updates and incentives.
The costs for investors is very low, we take a 1% fee of the value of the repayment every time a repayment is made. More detail on the fees page can be seen here.
There is also a fee if you add funds to your wallet using a credit card. This fee is 1% of the value of your transfer in. You can transfer funds for free via direct bank transfer.
We take most of our commission from the businesses.
A marketplace where you can re-sell an investment to another investor. This means you may be able to exit your investment early.
The Exchange is only currently enabled for debt investments and there is no fee for listing or purchasing an investment on the Exchange.
The seller defines the price that the investment is sold on the Exchange.
Investors can access their capital by selling to others on the Exchange. Investors define the price of the investment being sold. A higher price will take longer to sell than a lower price which makes the purchase more attractive for potential buyers. See the Exchange here.
Crowd2Fund conduct thorough due diligence on all opportunities listed to check for their credit worthiness, before listing on the platform.
Where possible security or a personal director guarantee is taken against the loan to help recover the debt if something goes wrong. Learn more about how we manage recoveries and bad debt on the platform here.
Security from cyber attack is one of our priorities. The Crowd2Fund platform has been carefully built to protect you, your finances and your data against security threats. Many of our processes go above and beyond what other website may offer e.g. we use mobile authentication for all transactions.
We’ve also arranged for a third party testing company to review our platform on a regular basis to identify any security gaps.
Your funds are held with our 3rd party client funds manager called Mangopay. This is similar to an escrow account and also helps ensure that the funds are kept safe and well managed. Our technology manages them automatically and we work very closely with Mangopay.
In summary, there are always risks associated with investing. These risks must be fully understood before investments begin. Your investment can go down as well as up and you may lose your money.
Here are the key risks:
Past performance and forecasts are not reliable indicators of future results.
Tax treatment of any of the investment offers will depend on the individual circumstances of each investor and may be subject to change in the future.
If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.
Do not invest more than you can afford to lose. Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio.
Investing in start-ups may expose the individual concerned to a significant risk of losing all of the money or other assets invested. Peer to business lending through Crowd2Fund is not the same as holding a bank or building society savings account.
When making a peer to business loan, your capital lent to a borrower is not covered for compensation in the event of a loss by the Financial Services Compensation Scheme. It may prove impossible to recover all or part of the loan by calling in the business assets held as security on that loan.
Reward and Donation funding types are not regulated by the Financial Conduct Authority
Crowd2Fund Limited is authorised and regulated by the Financial Conduct Authority (FRN 623683). Crowd2Fund Limited is registered in England and Wales. Registered No. 08472687 Registered Address: 242 Acklam Road, London, W10 5JJ.
Read a detailed explanation of the risks here.
EIS is the Enterprise Investment Scheme. SEIS is the Seed Enterprise Investment Scheme.
They are government schemes that allow you to claim tax relief on certain equity investments, reducing your level of risk and incentivizing investment into great British businesses.
SEIS and EIS only applies to equity investments not IFISA or other debt based investments.
Read more about EIS and SEIS here.
As part of our FCA compliance procedures, we have a plan in place that ensures your investments are managed through the platform no matter what may happen in the future. We are required to hold a capital reserve so if the company is wound up there is budget in place to manage a smooth wind down.
We also have a partner in place who will take on managing the repayments back to the platform investors.
Either via direct bank transfer or credit card.
We recommend direct bank transfer for larger amounts. Credit card transactions entail a 1% commission.
You can manage payments via the wallet section of the platform.
Easily, via the wallet section of the platform.
When you make a withdrawal request, we validate your identity and bank account using mobile authentication. The funds will then be transferred from the wallet to your bank account. This can take up to 24 hours.
To make a formal complaint please email email@example.com
The Crowd2Fund App is only available on the Apple Store and requires iOS 8.4 or later. The App is optimized for iPhone5 or greater only.
You can manage your mobile notifications from your settings on the desktop version of Crowd2Fund. You will be soon able to manage it from the app.
Click on your name in the top right-hand of the page and select "settings". From this page, you will be able to manage your email and telephone details and notifications preferences.
The app allows investors to track their portfolio and follow their investments. Investors will also be able to receive alerts for all investments and sell their investments via the Exchange. Investors can make an investment via the app.
Click here to learn more about the available functions.
The Crowd2Fund App is available for any investors registered on the Crowd2Fund platform.
The application is secure and all data is encrypted before transmitting. Funds that are added are held safely in a 3rd party bank account. It is important to make sure you have a pin code on your phone. Investments can only be made when they are validated with a secure code that is sent to users via SMS.
You can get industry statistics from the P2P finance association here