LendingCrowd is on course for continued expansion after completing loan deals totalling more than £3 million during May – marking the peer-to-peer (P2P) platform’s best-ever month.
Despite May having two bank holidays, LendingCrowd – which uses the mission statement “Think Outside The Bank” – also saw its deal volumes reach a fresh record. The Edinburgh-based company secured loans for 36 small business covering a wide range of sectors across Britain.
Adrian Innes, Head of Origination at LendingCrowd, said: “It was a great team effort to get to this milestone, helped by our improved processes and a fantastic working relationship with our community of introducers.”
He added: “Not only was May a record for us in terms of the total value of loans, the number of deals completed also hit a new high, up 40% compared with our previous best.”
To match borrower demand, which is at an all-time high for the company, LendingCrowd has launched a promotion for new investors. Those who sign up with the platform before 29 June 2018 and lend £2,000 within 14 days of sign-up will receive a £100 cashback bonus^. Limited time offer – terms apply.
LendingCrowd is targeting total lending of about £40m for 2018, more than double the figure for last year. This comes after the company secured £2m of external funding in a round that was led by angel syndicate Equity Gap and included the Scottish Investment Bank along with a number of prominent private investors from Scotland’s entrepreneurial and finance scene.
Stuart Lunn, co-founder and CEO of LendingCrowd, said: “The support from our investors highlights the progress we’ve made since our launch in late 2014 and the potential for us to scale significantly this year.
“I’m confident that, as we expand our sales and marketing activities, we’ll continue to grow our loan book as more small businesses turn to us for their funding needs. At the same time, investors are attracted by our suite of products that offer inflation-beating* returns.”
*As an investor, it’s important to remember you’re lending to businesses so your capital is at risk. Borrowers need to be mindful that defaulting might lead to the debt being passed to an agency for collection. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.
NOTES TO EDITORS
- LendingCrowd enables retail and other investors to invest in SME loans using an industry-leading technology platform. Since launching in 2014, LendingCrowd has become fully authorised by the Financial Conduct Authority, launched an ISA product for investors and agreed a partnership with Scottish Enterprise whereby its investment arm, the Scottish Investment Bank, has agreed to invest £2.75m in LendingCrowd loans.
- LendingCrowd has over 5,000 investors signed up to its platform. Deals range in size from £20,000 to over £1 million – in 2015 LendingCrowd helped Diet Chef complete one of the biggest ever peer-to-business deals seen in the UK in a £1.5m debt finance transaction.
- In February 2017, LendingCrowd launched one of the first Innovative Finance ISAs (IFISAs) by a P2P lender with a target rate of return of 6% a year. Target rate is variable, net of ongoing management fees and bad debt.
- LendingCrowd is the only P2P lender headquartered in Scotland and has established a strong market presence across the UK in a relatively short period of time.
- Capital at risk.