New Array of Financial Tools for Entrepreneurs
22nd June 2020
During this challenging period, we’ve been busy making some essential developments to enhance the capabilities of the platform. For investors and businesses alike are the new financial products planned to launch soon, as we help Reboot Britain.
We will continue to offer higher risk venture debt loans at 15%, however, also launch CBILS government-guaranteed loans at 9.5% and Future Fund opportunities, which are convertible interest-only loans at around 4%- 8% APR where the debt investment can be converted into company equity at a discounted valuation for investors. All returns shown are before fees and bad debt.
From the very start of the pandemic, we have maintained a strong relationship with HM Treasury and the British Business Bank. With our recent CBILS accreditation, we plan to be lending CBILS, government-guaranteed capital to investible entrepreneurs alongside private investments. With the proven technology and talent at Crowd2Fund, we’re well equipped and extremely excited to play our part in the post-lockdown COVID19 recovery.
The new CBILS loan product will see interest rates of around 9.5% APR for borrowers. This is competitive with current market rates. Furthermore, businesses will become part of our community, where they can gain access to additional benefits. Our platform allows entrepreneurs to build their private community of investors to help accelerate their business growth.
We will re-launch the platform spearheaded with the Reboot Britain campaign. This is in collaboration with the HM Treasury’s Future Fund – an exciting new opportunity for innovative businesses to receive government-matched investments. Our Crowd2Fund Reboot Britain campaign hopes to give interest-only returns on investment of around 4% - 8% APR, with the added option of converting the investment to company equity later.
Interest earnings could be higher because these loans are not amortising and will see a different profile of businesses that offer significant benefits over the long-term with equity ownership.
These products offer a truly unique opportunity to secure the success of the very best British entrepreneurs, who are building the future of the economy and stimulating job creation. Crowd2Fund will be using this as an opportunity to grow into a global operation, while also providing an international launch-pad to the forward-thinking global entrepreneurs, in the most future-focused sectors.
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.
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.