Find out everything you need to know to get a business loan with LendingCrowd.
We explain all in our summary for borrowers.
Our arrangement fee will be clearly shown on your loan offer. You pay up to 6% of the amount you borrow if you came to us directly.
If you arrange your loan via a broker, you may have to pay an additional fee for their service. Additional fees may be added if you are late in making repayments. Arrangement fees are rolled into the total loan amount.
To discuss your individual borrowing needs with our expert team, please contact us.
Please note: we do not charge fees for early settlement of the loan, on overpayments* or to change the loan repayment dates to better fit your monthly cashflow.
*If overpaying, the payment must be at least £5,000.
At any point during the loan term, you can make one-off or multiple overpayments of at least £5,000, with no penalty, enabling you to reduce the term and the total interest payable.
You can also repay the outstanding balance in full at any time, with no early repayment fees or penalties.
We take a number of factors into account to determine interest rates. In short, we look at cashflow, management strength, the industry the business is in and its ability to repay the loan. These factors are scored along with other data on the business and directors to generate a score that will have a corresponding interest rate.
Limited companies and LLPs that have been trading for a minimum of 2 years are eligible to apply for loans. Borrowing businesses should be incorporated in England, Scotland or Wales, have a turnover of at least £100,000 a year, be profitable and have a good credit history with no defaults or active CCJs held against them.
No. However, you can apply for further borrowing with us once you’ve made at least 6 repayments on your existing loan, which will be rolled into your new loan.
We encourage you to consult HM Revenue & Customs or a qualified tax adviser for information.
Businesses can apply to borrow between £75,000 and £500,000 through LendingCrowd.
Business can apply to borrow funds for between 6 months and 5 years.
When you submit a loan application, we don’t charge you any fees until your loan has been paid to you.
To apply for a loan with LendingCrowd, you’ll need to supply:
- Two years’ filed accounts (last one no more than 15 months old)
- Last three months’ bank statements
- Details of current borrowing
- Purpose of funds
- Management information (if available)
We make our credit assessment based on the loan amount you request – you may request a different amount or LendingCrowd may suggest a lower amount in line with affordability criteria. Therefore, once a loan has been paid out to you, you can’t alter the amount of the loan.
You can apply for a loan to carry out refurbishment works on your business premises, but we don’t currently offer property loans for development or purchase.
Our Credit Team treats security on a case-by-case basis. Each loan’s security considerations will be a little different, but we generally consider:
- Personal guarantees for loans of up to £350,000 (including fees), subject to credit assessment
- A charge or asset security for loans above £350,000
- If you are not a homeowner, we will ask for a third-party guarantee
- Bilateral guarantees from associated companies may be requested in specific circumstances
We aim to be in touch within 48 hours of receiving your loan application (weekends excluded).
We calculate loan repayments using the same formulae used by banks and other financial institutions. Your monthly repayments will be the same each month (except for your final payment of the loan term, which will usually be different) and will typically consist of interest payments and repayments of the outstanding principal of the loan. Each month, the interest portion of the payment will typically go down and the principal portion will go up.
If you want to change your repayment date, for example to suit your cashflow, please contact us. We can change repayment date at no cost to you.
When you complete your loan agreement, we’ll agree a start date for your repayments, which we’ll take by Direct Debit on the same day each month (depending on bank processing). We will communicate with you before a payment is due so that you can ensure you have the required funds in your account.
If you think you will be late in making a repayment, or find you are in financial difficulty, you should call us on 0345 564 1600 or email us at firstname.lastname@example.org as soon as possible so we can work together to find the best solution. We have a range of options available to support you, including forbearance.
For free advice about dealing with debt, you can contact Business Debtline, which is run by the Money Advice Trust, a registered charity.
When your loan is fully repaid, you don’t need to do anything else – we immediately release any security and personal guarantees that were in place. We update Companies House and, if applicable, the Land Registry (for borrowers in England or Wales) or Registers of Scotland (for borrowers in Scotland) to reflect the fact that we no longer have any charge over the business or your property.
The only time a borrower needs to take any action is if we had a standard security over a property in Scotland. Once the loan is repaid, the borrower would need to engage a solicitor to update the Registers of Scotland and discharge the security.