LendingCrowd Review

Here at Choice Loans, we continue to see an increasing number of peer-to-peer lenders enter this growing alternative finance sector. Many of these lenders are providing serious competition for the high street banks and building societies that, from a borrower's perspective, has got to be a positive factor.

Periodically, we provide an overview of certain peer-to-peer lenders and, on this occasion, we have undertaken a review of LendingCrowd that was launched in 2014.

Who do LendingCrowd arrange finance for?

Loans are made available to profitable, small and medium sized businesses located in the UK with a good credit history. They must be either limited companies or LLPs with a minimum of 4 partners and been trading for at least 2 years with a minimum turnover of £100,000.

How much can you borrow?

Your business can apply to borrow from £5,000 to £250,000 over a period of between 6 months to 5 years.

The loan is repayable on a capital and interest repayment basis over a term of 6 months to 5 years. Requests for both secured and unsecured loans are considered with security comprising of either, or a combination of, director's guarantee, deed security or mortgage debenture.

Purpose of loan

Loans are made available to assist in a business's growth so can be used for a variety of things such as buying premises, stock, working capital, plant and machinery and for debt consolidation.

Interest rate and charges

The fixed interest rate is based upon the level of perceived risk with the minimum rate being 5.95% and the maximum 16.00%.

The arrangement fee is based upon the % of the amount borrowed and the term of the loan. For example, over a period of 6 to 18 months a fee of 2% is payable, over 24 to 36 months the fee is 3% and over 48 to 60 months the fee is 4%.

In addition, any security and valuation fees are also payable by the borrower. There is no early redemption penalty should the borrower wish to repay the loan prior to the end of the term of the borrowing.

Procedure

A loan application is completed that, along with supporting documents such as audited accounts, is assessed by LendingCrowd. If the application is approved it is given a credit rating. The loan is made available within the marketplace for up to 14 days or until fully funded. Potential investors can decide if they wish to bid and also what interest rate they require. If the loan request is fully funded and the borrower still wishes to proceed, the borrower pays an average of the lowest interest rates offered. Once all documentation is completed, including any security, LendingCrowd would hope to release the monies within around 7 days.

We do hope that you have found this review of LendingCrowd informative. Please feel free to telephone us on 01494 410125 and speak with one of our experienced members of staff if you wish to discuss a lending proposition.