Crowdstacker: Peer-to-peer lending and borrowing
Is the alternative peer-to-peer finance platform the right provider for you?
Crowdstacker is a peer-to-peer (P2P) lending platform with a difference. The company specialises in providing business loans to already established businesses. The fact the loans are to more established businesses should reduce the risk of default, and could make it a viable option for those looking for an income investment product.
Continue reading to find out more about the P2P lending platform.
What is Crowdstacker?
Crowdstacker was founded in 2014 by Karteek Patel, Mark Bristow and Julian Turnbull. The company’s founders have worked together for over a decade, and combine a huge wealth of knowledge and experience from the finance industry.
So far, Crowdstacker has raised over £36m and has roughly 7,000 members. The loans are exclusively to established companies, so the risk of default on the loans should be relatively low.
How it works
To start investing on Crowdstacker, follow these simple steps:
- Open your account: Open your account in as little as a few minutes
- Select: Select a business you would like to invest in
- Invest: Invest as little as £500 in your chosen business
- Earn: Receive payments monthly, quarterly or yearly
- Get paid back: Get paid back your principal amount either during the loan or at the end of the term
To raise funds on the Crowdstacker platform, the process is a little more complex. It will involve meetings with directors, a due diligence process and a review of the financial position and business plan.
Benefits to investors
The benefits of lending to businesses through Crowdstacker include:
- Investments are transferable on Crowdstacker’s secondary marketplace
- Multiple tranches on products, so you can start earning interest sooner
- Investments are eligible to be held in the new Innovative Finance ISA, a Crowdstacker P2P account or a P2P SIPP.
Benefits to borrowers
Raising funds on the Crowdstacker platform comes with a number of benefits, these include:
- Your business will be one of a few, and wont be competing with a big crowd of businesses
- All products are debt based, so you will not lose a share of your company when raising finance
- Multiple closings on products, so you can start using the proceeds sooner
Frequently Asked Questions
More guides on Finder
Buy now pay later (BNPL) statistics | 2020
Buy now pay later is the fastest growing online payment method in the UK. Discover the latest statistics on how it’s disrupting the payments industry.
Best ways to invest £200 per month
Wondering what to invest £200 in? Read our guide to learn what you need to consider first and find the best option for you.
The 10 best performing investment trusts over the past five years
We’ve put together a list of the best investment trusts of recent times, in terms of performance, income generation and popularity.
Best exemplified by the Oracle of Omaha himself, Warren Buffett, value investing is an investing strategy that, you guessed it, tries to find value in the stock market.
Invest in S&P 500 ETFs
Find out what drives the S&P 500 and how you can invest in S&P 500 ETFs.
Wondering what leveraged ETFs are and whether it’s worth investing in them? Read our guide to learn everything you need to know.
Technology has been a hugely successful investment in recent years. Find out more about technology ETFs and why it’s worth investing in them.
ETFs vs mutual funds
ETFs and mutual funds are both ways to invest in a collection of investments, but they have some key differences that change the way you trade them.
How to buy stock in Corsair when it goes public
Learn how to invest in Corsair when it becomes publicly available.
Ask an Expert