Smart-Invest is an intelligent feature that helps you automatically invest your funds into opportunities. The chosen opportunities are selected based on your desired savings plan and risk appetite. You choose an initial investment amount, monthly investment amount and desired interest rate, we do the rest automatically. All businesses eligible for Smart-Invest have been hand-picked and reviewed against our strict criteria.
Set up your IFISAMore information
Initiate your Smart-Invest from
your dashboard after logging in
Define your investment criteria
and set up your savings plan
Calculate future potential earnings
How it works
The system selects businesses based on your needs and criteria
Every time an investment is made you will be alerted by our notifications system
Repayments are made back to you on a monthly basis and re-invested in new matching opportunities
You tell us the interest rate and how much you want to invest. Then Smart-Invest invests in every business that is close to your criteria. Every month a direct debit payment is taken from your bank account for the specific amount stated, which is then deployed evenly into all businesses on the platform which are currently live, unless you have already invested in them.
You can not choose the opportunities, but you can invest in more opportunities outside of your investment plan. You can also cancel an investment your Smart-Invest plan has made if you wish, as you’re always notified when an investment has been made.
Smart-Invest currently only works with the loan and revenue loan opportunities, as these are the only funding types that qualify for your IFISA. More investment types will soon be added to Smart-Invest, whereby you will be able to configure your investing plan based on all types available.
You can switch off Smart-Invest at any time, as you are always notified when an investment has been made. You also have the chance to cancel an investment, should you not like one of the opportunities.
The minimum investment amount for the Smart-Invest is £250, which needs to be invested up front to start your plan. We take an upfront investment, after which a monthly investment will be taken from your bank account via direct debit.
To be eligible to start Smart-Invest, you must:
- be 18 years of age or older;
- be a resident of the United Kingdom;
- have an UK bank account;
- have set up your IFISA
The interest rate you choose is a 'desired' interest rate; it indicates to the system your target rate of return. Your actual return may vary based on market conditions and opportunities available.
Funds can be added via direct debt on a monthly basis. This is defined when you set-up your Smart-Invest plan.
When your funds are taken from your bank account via Direct Debit, and you are notified, the funds take a few days to arrive in your Crowd2Fund wallet. As soon as your funds arrive they will automatically be pledged to a suitable campaign. You will start earning interest when the campaign target is met and the loan completed, usually a month after the campaign closes. Repayments are made directly into your Crowd2Fund wallet and re-invested into other opportunities automatically.
You can edit or cancel your investment plan from the Settings page or from the IFISA section on your desktop dashboard.
You can access your funds by listing any Smart-Investments on the Crowd2Fund Exchange. When another investor purchases the investment from you, the funds for the investment will be added to your Crowd2Fund wallet.
Smart-Invest is free to set-up. Investors pay a 1% fee of the value of every repayment when the repayment is made to you. You can understand more about how our APR and Fees are calculated here.
Your capital is at risk, but the funds are held in our secure 3rd party client funds manager Mangopay until the investment is confirmed. By risking your capital and lending directly to growing small businesses, you potentially receive a higher interest rate of return than funds in a traditional bank account.
Smart-Invest is always done through your IFISA. You must set up your IFISA to invest using the Smart-Invest system before you start, to avoid any investments being made out of the IFISA wrap.
If you have multiple years’ worth of savings within your ISA, you are able to transfer these and continue earning tax free on Crowd2Fund for investments of up to £20,000 this 2019/2020 tax year. Investment returns above the allowed £20,000 from your ISA will be taxed. There is no fee for setting up an IFISA on Crowd2Fund.
You can only have one active Smart-Invest plan but you can modify this plan and also invest outside your Smart-Invest plan.
Anyone who invests more than £2000 must provide a copy of government issued photo ID, normally a driving license or a passport. This is uploaded when you set-up your plan or add funds to your Crowd2Fund wallet.
We do not manage your portfolio as we are an execution-only platform. We do not provide investment advice but provide the system and information to make it easy for you to make investments in growing British businesses.
We will send you a monthly Crowd2Fund statement which gives you an overview of your Smart-Invest plan performance.
Annual percentage returns
Because you will be investing regularly and in multiple businesses your returns will be between 6 to 15%, based on the loans available over the next 12 months before our fees and bad debt. You can read about our average loan rates here.
Access to your capital
If you want to access your capital before the end term of a loan, then you can do so by selling an investment at any time to another investor on the Exchange. You define the sale price depending on how quickly you need the funds and the performance of the investment.
You will receive monthly repayments following the closure of the campaign in which you invested. If you wish to increase your portfolio ROI, then your repayments can be automatically re-invested on a monthly basis. This is done by agreeing to the 'Re-invest my monthly repayments' tick box on the Settings page. This feature only works for repayments totaling £100 or more.
If you receive lots of small repayments, but don’t want the hassle of re-investing every time, we would like to invite you to set-up a Smart-Schedule. This is allows you to specify the wallet balance at which you wish a Smart-Investment to be made. For example, should you set your wallet balance at £150, the system will automatically invest the total £150 across campaigns that match your desired APR.
The Smart-Wallet allows you to invest in all campaigns that match your criteria instantaneously at the click of a button. You must have more than £100 available in your wallet for this feature to work. Simply click the Smart-Invest button from your dashboard and your investments will be made.
We are hoping to introduce more advanced features that will let you include more exotic equity investments as part of your portfolio and more advanced profiling to ensure the Crowd2Fund platform understands your risk appetite more accurately, soon.