Crowd2Fund: Peer to peer lending and borrowing
Can the alternative finance provider provide the right crowd funding service for you?
Crowd2Fund is the only FCA regulated crowdfunding platform to offer five models of finance. Founded as an alternative to the current out-of-date financial system, Crowd2Fund grant businesses access to funds at competitive rates and investors access to generous returns on their investments.
Continue reading to find out more about the crowd funding platform, and see if the service is right for you.
Who are Crowd2Fund?
Crowd2Fund was founded with the intention of creating an alternative to the current financial system. The service it offers gives customers a unique level of autonomy over their investments decisions, allowing investors to chose from the large range of businesses and 5 funding options.
The company is a relative late comer to the crowd funding market, where it was founded in 2014. Since then, it has raised more than £15m of funding for more than 200 businesses. Crowd2Fund have big plans for the future, so don’t be surprised if you see the name again.
How it works
To start lending on the Crowd2Fund platform, follow these simple steps:
- Register: Register with Crowd2Fund and set up an account
- Review: Crowd2Fund will check your identity, address and bank account ownership
- Chose: Chose how you would like to invest: equity, bonds, revenue, loan or donate
- Decide: Decide on who you would like to invest in, how much you want to lend and what level of returns you want
- Invest: Invest your money, and start earning straight away
To apply for finance on the Crowd2Fund platform, follow these simple steps:
- Apply: Register to Crowd2Fund and submit a business proposal for funding
- Review: The Crowd2Fund risk and due diligence team will review your proposal against the strict acceptance criteria
- Campaign page: You are encouraged to create a campaign page for you business,
which will be used to promote your business on the platform
Below are the ways that investors can invest in businesses:
Benefits to lenders
As a lender, you can chose how much you want to lend and what interest rate you would like to receive. Benefits to lenders include:
- Control of lending decisions
- Chose level of returns by choosing investment type
- Detailed information and data about the borrower
- Vetting, legal documentation, deal management and security
- Can manage risk by diversifying investments
- Access to capital through investment exchange secondary market
Benefits to borrowers
As a borrower, you can get access to a network of investors and loans at competitive rates. Benefits to borrowers include:
- Network of lenders with interest to see the business succeed
- Access to investments from £10,000 to £1,000,000
- Loan terms from 1 to 5 years
- Accept applications from any UK business
- Expert business coaching and business support
- Investor reports and repayments through the dashboard
To apply to borrow through Crowd2Fund, you need to meet a certain set of criteria.
- Directors and significant shareholders must not have been involved in a business that was bankrupt within the last 6 years
- Directors must not have been directors of businesses which failed from unpaid debts or failed in the same industry within the last 5 years
- The business must not have unpaid county court judgements in excess of £500, or have a track record of judgements
- Pass checks for identity, fraud, linked businesses, personal bankruptcy, county court judgements and credit history
- Some sort of security required for loans
- Must be able to prove the business can afford the repayments
- All users of Crowd2Fund (including investors) are checked for identity, address and bank account ownership
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