Cookies are temporary files we place on your device to improve your user experience, for example to sign up and log in to your account. Find out more about cookies, and how to control them, in our privacy policy. By continuing to use our site, you agree to this policy Close image

Lender update – July 2022


As a lending platform that is regulated by the Financial Conduct Authority (FCA), we are required to publish a document called an Outcomes Statement. We published our Outcomes Statement for 2021 and it is available for download.

Under FCA rules, our Outcomes Statement must include the expected and actual default rates for all lending agreements that we have facilitated by Risk Band. We are also required to provide a summary of the assumptions used when determining expected future default rates.

Our obligations in operating a Loan Market are significant as we have a regulatory requirement to ensure that the valuation of a loan part for sale is fair and appropriate.

Economic conditions still remain unstable for certain SMEs and sectors. We have no immediate plans to re-open the Loan Market.

The lending landscape
On 4 February 2022, LendingCrowd was accredited by the British Business Bank to provide funding through the Recovery Loan Scheme (RLS), which was designed to support businesses as they recover and grow following the Covid-19 pandemic.

RLS loans could only be funded by institutional lenders – individuals were not allowed to fund these loans. To support businesses via the RLS and our core term lending product, LendingCrowd agreed a £100 million institutional funding deal, the largest in our history, which was announced in February this year.

As we emerge from the pandemic, LendingCrowd continually monitors the performance of our borrowers and the underlying economic conditions. If we identify an opportunity to re-open our Loan Market, we will consider this carefully and cautiously, within the context of treating our customers fairly.

Important information for lenders
Lenders with a cash balance in their LendingCrowd account should strongly consider moving these funds into an alternative interest-bearing account, such as a bank account, as per guidance provided by the FCA. Interest repaid into a LendingCrowd account and not lent out does not earn interest.

When lending to businesses, it is important to remember that your capital is at risk. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Article author

Gareth Mackie

Gareth Mackie

If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Read more about the risk involved when investing and borrowing.

The company's registered office is 23 Manor Place, Edinburgh, EH3 7DX.

Copyright © LendingCrowd 2022. All rights reserved.

Best P2P Business Lender ICAS