A good investor seeks minimum investment risk with maximum return. This is what the Crowd2Fund credit team work tirelessly to deliver.
Crowd2Fund carefully handpick opportunities to list on the platform, conduct thorough due diligence and take security or a director’s guarantee for the loan where possible. Any loan security or director guarantee is clearly shown on the opportunity profile. We work closely with businesses and monitor them to reduce the risk of a default.
Anyone lending on a peer to peer platform must understand that there are risks involved and, as hard as we try to avoid losses, it is inevitable some losses will be experienced. This page sets out the losses we have experienced over the last 12 months.
Actual fund performance
| Oct 18 | Nov 18 | Dec 18 | Jan 19 | Feb 19 | Mar 19 | Apr 19 | May 19 | Jun 19 | Jul 19 | Aug 19 | Sep 19 | Oct 19 | 12 months avg | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Actual gross APR | 10.12% | 10.16% | 10.23% | 10.25% | 10.28% | 10.33% | 10.43% | 10.52% | 10.58% | 10.66% | 10.71% | 10.79% | 10.92% | 10.46% |
|
Late repayments | 0.52% | 0.74% | 1.98% | 1.35% | 1.65% | 2.12% | 2.84% | 2.93% | 3.79% | 3.45% | 4.30% | 4.16% | 3.87% | 2.59% |
|
Defaulted loans | 1.82% | 2.06% | 3.93% | 3.17% | 3.44% | 3.07% | 3.11% | 3.01% | 2.92% | 3.91% | 4.01% | 4.53% | 4.79% | 3.36% |
|
Written off loans | 0.49% | 0.41% | 0.34% | 1.09% | 1.03% | 1.01% | 0.97% | 0.94% | 0.91% | 0.89% | 0.98% | 1.77% | 2.20% | 1.00% |
Average returns before fees and bad debt
Actual losses
Example investment returns
| Loan Interest Rate | Amount Invested | Investment Term | Interest Earned | Crowd2Fund Fees | Net actual Earnings without repayments reinvested | Net earnings where repayments are re-invested | Estimated % return with repayments re-invested |
|---|---|---|---|---|---|---|---|
| 8.7% | £5,000 | 12 months | £238.75 | £52.39 | £186.36 | £380.65 | 7.61% |
| 8.7% | £5,000 | 24 months | £465.57 | £54.66 | £411.01 | £848.77 | 16.97% |
| 8.7% | £5,000 | 36 months | £698.85 | £56.99 | £641.86 | £1,357.61 | 27.15% |
| 8.7% | £5,000 | 48 months | £938.28 | £59.38 | £878.9 | £1,910.72 | 38.21% |
| 8.7% | £5,000 | 60 months | £1,183.92 | £61.84 | £1,122.08 | £2,511.95 | 50.24% |
Assumes the £5000 loan is paid back monthly with interest and initial capital lent
Assumes the reinvested repayments are re-invested at 8.7% APR
Past performance and forecasts are not reliable indicators of future results.
Capital at risk.
Tax treatment is depend on individual circumstance and is subject to change.
Definitions
Actual gross APR
This is the annual percentage return for active loans on the platform. It is calculated by taking an average of the APR across all loans. The average APR is not weighted based on the value of the monies lent and assumes that the average APR is achievable based on lending the same amount to all loans listed on the platform for the last 12 months.
Late repayments
This percentage is the percentage of the overall loan book where the repayment is late but is recoverable and has not yet defaulted. Businesses sometimes make a late repayment due to unforeseen circumstances.
Defaulted loans
This is the amount of loans that are in default and undergoing legal proceedings. If a loan defaults, it does not necessarily mean it is not recoverable. It is important to expect some defaults. Past performance is not an accurate indicator of future performance.
Written off loans
This is the percentage of loans that are not recoverable and your total losses to date. To reduce your investment risk, it is always advisable to invest in different businesses and different products.
Target estimated gross APR
The estimated APR is our target APR, which is calculated before target defaults of 0.5% and investor fees. Sometimes the actual APR may vary and is estimated based on our forecast market conditions and demand for credit in the marketplace. This APR is gross and actual returns may be higher or lower depending on market conditions and the businesses the investor chooses to invest in.
Last updated on 31st October 2019.
More informationPast performance and forecasts are not reliable indicators of future results.
Tax treatment is dependent on individual circumstance and is subject to change.
Capital at risk.