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Borrower Questions

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

The fees will depend on the amount you want to borrow, as shown below:

Loan period Fees
6 to 18 months 2%
2 to 3 years 3%
4 to 5 years 4%

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 investors who will bid of a sum of money and an interest rate. If the loan is oversubscribed, the investors who bid the lowest interest rates will become your lenders.

We can provide indications of the rates that businesses in different Credit Bands are currently borrowing at. However, the exact rate you pay will depend on a number of factors, including the Credit Band you’re in, the level of investor activity on your loan and how promptly you answer investor questions. We’ll allocate you with a Credit 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 over 6 months up to 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 Credit Band to your business using our robust risk analysis engine called ExpertLender, 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 Credit Bands range from A+ to C+, with A+ being the lowest risk. We’ll tell you which Credit 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 an investor asks you a question, and you can answer them by going to the ‘My Account’ section of the website. We recommend that businesses respond promptly to investor questions – this shows your focus on service and helps to maintain the investor’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 investors.

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

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

For limited companies, investors 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 investors.

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 investors 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. These funds should reach you within 5 working days.

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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Borrower Guide

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General FAQs

The most frequently asked questions about LendingCrowd

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Ask your own question

or call us on
0345 564 1600
and we’ll be happy to help.

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 2018. All rights reserved.

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