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Borrower Questions

Find out everything you need to know to get a business loan with LendingCrowd.

The Coronavirus Business Interruption Loan Scheme (CBILS) is a new scheme that can provide facilities of up to £5 million for smaller businesses across the UK that are experiencing lost or deferred revenues, leading to disruptions to their cashflow. CBILS supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

The UK Government will make a Business Interruption Payment to cover the first 12 months’ interest payments and any arrangement fees.

LendingCrowd is offering CBILS loans from £50,001 to £250,000, with nothing to pay for the first 12 months. Loan terms are either 36 months or 60 months.

CBILS provides lenders with a government-backed guarantee of 80% of the outstanding loan balance. Please note: when taking out a CBILS loan, the borrower remains fully liable for the debt.

You can find out more on the British Business Bank website.

To be eligible for a CBILS loan, your business must:

  • Be UK-based in its business activity
  • Have a 2019 turnover of between £200,000 and £45 million
  • Have a borrowing proposal that the lender would consider viable, were it not for the current pandemic
  • Self-certify that it has been adversely affected by Covid-19
  • Generate more than 50% of its turnover from trading activity in the UK

You can use the CBILS loan for cashflow purposes, to invest in your business or to refinance existing debt.

CBILS is available from lenders, such as LendingCrowd, that have been accredited by the British Business Bank. To apply for a loan with LendingCrowd, click here.

To apply for a CBILS loan with LendingCrowd, you’ll need to supply:

  • Two years’ filed accounts
  • Six months’ bank statements
  • Details of current borrowing
  • Management information (if available)
  • Business plan (if available)

No, the UK Government pays the borrower’s arrangement fee for CBILS loans.

No, under this scheme, we will not take personal guarantees of any form for loan facilities up to £250,000.

Yes, you must show in your borrowing proposal that, were it not for the current pandemic, a lender would consider your business viable. You must also self-certify that your business has been adversely affected by Covid-19.

Yes, as long their business activity is operated through a business account. CBILS is open to:

  • Sole traders
  • Freelancers
  • Bodies corporate
  • Limited partnerships
  • Limited liability partnerships

Yes, we will consider refinancing existing debt facilities, including those under CBILS or the Bounce Back Loans Scheme (BBLS). To be eligible, the existing CBILS or BBLS facility would have to be refinanced in full.

Our fee is low and transparent. You just pay 4% of the amount you borrow.

If you arrange your loan via a broker, you may have to pay an additional broker fee. Additional fees may be added if you are late in making repayments.

To discuss your individual borrowing needs with our expert team, please contact us.

At any point during the loan term you can make one-off or multiple overpayments of at least £5,000 on top of your regular monthly repayment, 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.

Your loan is funded by various lenders who will bid a sum of money and suggest an interest rate. If the loan is oversubscribed, those who bid the lowest interest rates will become your lenders.

We can provide indications of the rates that businesses in different Risk Bands are currently borrowing at. However, the exact rate you pay will depend on a number of factors, including the Risk Band you’re in, the level of lender activity on your loan and how promptly you answer lender questions. We’ll allocate you with a Risk Band once you’ve submitted your completed borrower application.

Limited companies or LLPs that have at least 4 partners and have been trading for a minimum of 2 years are eligible to apply for loans. Borrowing businesses should also have a turnover of approximately £100,000 a year, be profitable and have a good credit history with no defaults or judgements held against them. A director or partner of the business must complete the application as a power of authority. We can also accept applications from sole traders and partnerships, but the minimum loan we can offer them is £25,001.

Yes, you can apply for a new loan with us once you’ve made at least 6 repayments on your existing loan.

We encourage you to consult HM Revenue & Customs or a qualified tax adviser for information.

You can borrow between £5,000 and £500,000 through LendingCrowd.

You can borrow funds for between 6 months and 5 years.

When you submit a loan application, we don’t charge you any fees until you accept your fully funded loan.

You can use our calculator to get an idea of what you can borrow and how much you’ll pay in fees.

We calculate and allocate a Risk Band to your business using our robust risk analysis engine, which covers the following key factors:

  • Business and industry experience
  • Strength of management
  • Financial performance (focusing on the ability to generate cash)
  • Current credit history
  • Confidence in projected performance

The Risk Bands range from A+ to C+, with A+ being the lowest risk. We’ll tell you which Risk Band you’re in once we’ve processed your loan application.

We need you to provide information similar to that of most lenders when applying for a loan, for example company details, full set of financial accounts, latest management information and details of existing loans. Download our Borrower guide to help ensure that you have all you need to make your initial application.

We make our credit assessment based on the loan amount you request. Therefore, once you’ve applied for a loan, you can’t alter the amount you want to borrow. However, occasionally there may be special circumstances where our Credit Team will have to change your loan amount. If this happens, we’ll contact you.

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:

  • Debenture/bond and floating charge (first consideration)
  • Third-party guarantees

We aim to be in touch within 48 hours of receiving your loan application (weekends excluded).

You can cancel your loan request at any time up until you accept your loan. To cancel a loan request, visit the ‘My Account’ section on the LendingCrowd website.

We’ll send you an email when a lender asks you a question, and you can answer it by going to the ‘My Account’ section of the website. We recommend that businesses respond promptly to lender questions – this shows your focus on service and helps to maintain the lender’s interest and secure funding for you.

Your loan must reach its full amount for you to receive your funds. If your loan is only partially funded by the end of the auction, we may extend it after consultation with you. However, if your loan remains unfulfilled, we’ll release all funds back to lenders.

To help lenders make an informed assessment about your loan request, we’ll share the following information with them:

  • Business name
  • Business type
  • Amount you’re borrowing
  • Risk Band
  • Required security
  • The business credit score over time

For limited companies, lenders will also be shown recent financial performance, any descriptive information, a list of major assets and if the loan is secured against a specific asset.

After the loan auction has closed, you’ll have 5 working days to accept the loan offer. If you don’t accept the loan offer during this time, we’ll cancel your loan application and release the funds back to lenders.

Yes – as soon as your loan application is fully funded, you can accept it at any time in the ‘My Loans’ section of the LendingCrowd website. Alternatively, you can wait until the auction ends, to see if other lenders bid at lower interest rates, which will reduce the overall cost of the loan to your business.

Once you’ve accepted the loan request and we’ve arranged security and received all relevant documentation from you, we’ll place the funds in the business bank account you’ve registered with us. Once we have everything we need, the funds could be with you the same working day.

To accept your loan once it has been fully funded, log in to your borrower account, visit the ‘My Loans’ section and click ‘Accept’. We’ll then send you the paperwork, including your loan contract and security documents.

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.

No, but if you’re having problems repaying your loan on its current date, please contact us as soon as possible.

No, we don’t offer payment protection insurance to borrowers.

When you complete your loan agreement, we’ll agree a start date for your repayments, which we’ll take on the same day each month. Your loan paperwork will include a standing order mandate form for you to fill in and return to us. We’ll then send this to your bank to set up a monthly standing order for your payments.

You should call us on 0345 564 1600 as soon as possible so we can try to resolve this issue for you.

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0345 564 1600
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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 2020. All rights reserved.

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LendingCrowd is working with the British Business Bank to help deliver CBILS loans to SMEs affected by the Covid-19 pandemic. Find out more: