Investing with LendingCrowd
LendingCrowd offers peer-to-peer investors the opportunity to lend to British businesses and earn a target rate from 5.6%* a year or more. Remember your capital is at risk when you invest.
Sign up as an investor
Becoming an investor is easy. Create your account and complete the verification check using your passport or driving licence.
Choose your account
LendingCrowd offers a range of accounts for different ways to invest. All can be held within our Innovative Finance ISA (IFISA) for tax-free** returns.
- The Growth Account is aimed at investors who want a quick and simple method of creating a diversified portfolio of asset-backed P2P loans. It automatically diversifies your investment across the loans available on our Loan Market and the minimum investment is £1,000. Your interest and capital repayments are reinvested in additional loans, diversifying your investment further.
- The Income Account is for those seeking to generate a consistent level of income from a lump sum without eating into their capital. Like the Growth Account, your minimum investment of £1,000 is spread across our Loan Market. The key difference is your interest transfers to a separate account for you to withdraw – with no fees – while your capital repayments reinvest automatically.
- The Self Select Account is for experienced P2P investors who have the time to hand-pick which businesses they want to lend to, making sure borrowers match their appetite for risk. To achieve good returns, you’ll need to reinvest your capital and interest repayments on a regular basis. The minimum investment is £20 and you can lend to businesses at rates between 5.95% and 14.25%*** based on our Credit Bands.
Read more about the different accounts.
Add your funds
Whichever account you choose, you need to add funds to your account before you can get started. You can do this by debit card or bank transfer. If you choose to invest in our IFISA, you can also transfer existing ISAs to us.
Invest in British businesses
- New loans go into an auction where investors choose how much they’d like to lend and at what interest rate.
- Existing loans can be bought from other investors. There’s no bidding involved and you can invest instantly.
If you’ve opened a Growth Account or an Income Account, your funds will be invested on your behalf across all the loans available on our Loan Market. If your portfolio value is between £1,000 and £1,999, no more than 2% of your funds will be invested in any one loan. This maximum target exposure reduces to 1% for portfolios of between £2,000 and £4,999, and to 0.5% for portfolios of £5,000 and above.
Your investments repay monthly
When you invest with a Self Select Account, you’ll receive monthly repayments of capital and interest from each of the businesses you’ve lent to. You can then reinvest this money into other loans to keep earning returns.
Repayments into a Growth Account or Income Account will be automatically reinvested into other loans for you, continuously diversifying your investment portfolio and ensuring that your money keeps working for you. If you’ve chosen the Income Account, your interest payments will be transferred to a separate account for you to withdraw.
*As an investor, it’s important to remember you’re lending to businesses so your capital is at risk. The target rate is variable, net of ongoing repayment fees, estimated bad debt and before the 1% capital withdrawal fee. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.
**Tax treatment depends on the individual circumstances of each investor and may be subject to change in future.
***Investors can lend at rates between 5.95% and 14.25% based on LendingCrowd’s Credit Bands. Interest rates are guided by the credit grading allocated to each loan. Higher risk investments may yield greater returns but can also lead to lower returns if the business can’t fully repay its debts. This is known as bad debt. Find out more at our Risk matters page.
Low minimum investment
Easy account opening
Low, transparent fees
Diversify your portfolio
*Remember, your capital is at risk
Types of investment
Create an automatically diversified portfolio of business loans with one click. Target return 6%*
Take an income from your loans while your capital automatically reinvests. Target return 5.6%*
Self Select Account
Invest in loans you choose through our Loan Market and lend at rates from 5.95% to 14.25%***