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We've strengthened our credit policy – 12 months on

Since 2014 Crowd2Fund and its engaged investor community has backed 556 different entrepreneurs with more than £44m of capital

4th November 2021

Since 2014 Crowd2Fund and its engaged investor community has backed 556 different entrepreneurs with more than £44m of capital. This is a phenomenal achievement from a small but highly focused team leveraging the power of financial technology. The platform is now well proven, especially demonstrating a serious level of resilience with the challenges over the past 18 months. It also presents a huge scale up opportunity which is what we’re planning to focus on as we move into the next phase of the platform expansion.

Our platform currently has 297 active loans and in total £5,177,507 in interest that has been repaid back to investors with so far £1,599,907 written off showing positive returns for investors. Investor diversification and making good and balanced investment decisions is key to earning good tax-free returns via the platform. Write offs and defaults are highly regrettable because we want all businesses we list to succeed and for investors to do well.

Because we want to reduce the risk of default for investors to its full extent, we have invested substantially in improved process controls and new team members to help us deliver this. Crucially since reinforcing and reviewing our credit policy there have been no late payments from any of the loans issued in the last 12 months.

Crowd2Fund has listed 56 deals in the last 12 months with our reinforced process across a range of sectors, such as the food industry, health, technology and construction. On average these investors are earning an estimated 13.5% APR tax free before defaults and fees – directly from businesses. Some defaults should be expected and accounted for and investors should understand that anything invested via the platform may incur losses.

What’s important to know is that it appears the enhancements to our credit policy are starting to show with very few, if any, late repayments so far from any of these loans issued since September.  Diversification is key and the top investors invest in every deal but change the amount they invest depending on their risk appetite.

One of the new tools we’ve implemented is our new credit risk matrix that aims to help drive consistency across the pricing but also help provide further information to investors, based on key variables which are measured during the due diligence process. These variables are:

  • Equifax score: 1 to 100
  • Estimated director asset coverage: 1 to 100%
  • Term of the loan:  1 to 5 years
  • Director personal credit score: 1 to 1000
  • Security taken via a debenture: 1 to 100%

The outcome of the above calculation creates a score which we then place into a credit risk indicator bucket which helps you make a balanced investment decision. These buckets range from much lower, lower, medium, higher and much higher – you can find more information here. We will continue to develop our credit policy monthly and inform any investors of further improvements or changes. Accurate pricing of loans will be an important consideration for us to ensure that investors get a decent return and that businesses receive capital from investors quickly. 

We will also continue to automate the process to allow us to list more deals quickly and ensure consistent regular returns offered by businesses.


To learn more about our platform statistics and your earnings please click here


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.

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Risk warning

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.