Crowdfunding & Peer-to-Peer Lending
Leverage the power of the crowd to fund your business
If you want a Crowdfunding & Peer-to-Peer Lending please fill in this form
A Crowdfunded Business Loan means that instead of borrowing from one lender/institution, you borrow from many smaller ones who have clubbed together to raise your money. The process is arranged by a central agency (the crowdfunding platform) and you deal with just them and they in turn manage all your individual lenders. To qualify you must be trading at least 2 years, be profitable and have a good credit record.
What is available?
- Unsecured business loans of up to £350,000 for terms up to five years are available
- Secured business loans of up to several million are subject to asset quality, credit checks and LTV
- Flexible repayment schedules such as interest only, long amortisation profiles etc.
- Anonymous loans (where your details are not disclosed to lenders) also available
Frequently Asked Questions
Frequently Asked Questions
Will I have to deal with each lender individually?
No. This is done by the loan arranger. You just deal with one entity and make one repayment every month.
What are the fees to arrange this loan?
It generally depends on the term of the loan with a sub 3 year loan costing 3% and a 4 or 5 year loan costing 4%. The fees are deducted from your loan advance (so if you decide against the loan at any stage in the process you still pay no fee) and the fees are the same whether you arrange your loan via Choice Loans or direct with the crowdfunder themselves (we get paid by taking a share of the commission you would have paid them anyway).
How long does it take to arrange?
Usually 7-10 days from start to finish but it depends on the loan and which platform you go with.
What if I want to repay early?
This can be done without penalty.
Will details of my business be made public?
This depends on the platform used to arrange your loan. Some will disclose your outline financial information to registered lenders on their platform and others offer complete anonymity. We will make you aware of your options here.
Are Crowdfunded Business Loans regulated?
Yes, all Crowdfunded Business Loan platforms we deal with are regulated by the Financial Conduct Authority. We are also regulated directly by the Financial Conduct Authority (License No. 63877).
What is needed to apply?
Applying for crowdfunded business loans doesn't have to be difficult. Here's what you need to apply.
- Eligibility CriteriaYou must be an established business with a minimum of
two years trading, with clean credit and sufficient profitability to afford
the loan.
- Documents RequiredFull financial accounts,
recent bank statements and details of credit agreements, as well as an
application form.
- Additional CommentsThe process takes one to two weeks from receiving an
application to paying out the loan.
By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate. To qualify for crowdfunding, your business must be profitable and prove you are able to make repayments. We work with 8 different crowdfunders across the UK; there are more but we don't believe they have a critical mass of investors to make the proposition work.
NB Crowdfunders only look at historical data and won't lend against projections.
Read our Crowdfunding & Peer-to-Peer Lending Guides
All you need to know about Crowdfunding & Peer-to-Peer Lending
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What is Crowdfunding?
Crowdfunding is the means by which the funding for a business or project is raised not from one bank or financial institution, rather from a collection of individuals.
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How does Crowdfunding work?
Crowdfunding is the process of getting your finance from a ‘crowd’ of people – usually complete strangers – rather than a single bank or financial institution.
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Who uses Crowdfunding?
There are two distinct markets for crowdfunding: those looking for finance and those with money to invest.
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