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Lending to businesses with LendingCrowd

LendingCrowd offers peer-to-peer lenders the opportunity to make their money work harder by lending to British businesses. When lending to businesses, it’s important to remember that your capital is at risk.

Sign up as a lender

Complete a quick investor classification and appropriateness assessment to open your account – this is a requirement of peer-to-peer lending. Then complete the verification check using your passport or driving licence.

Choose your account

LendingCrowd offers a range of peer-to-peer lending accounts. All can be held within our Innovative Finance ISA (IFISA) for tax-free** returns.

  • The Growth Account is aimed at lenders who want a quick and simple method of creating a diversified portfolio of business loans. It automatically diversifies your funds across the loans available on our Loan Market and the minimum deposit is £1,000.
  • The Income Account is designed for those seeking to generate a consistent level of income from a lump sum without eating into their capital. It lets you take an income from the interest earned on your loans while your capital repayments are automatically lent out. The minimum deposit is £1,000.
  • The Self Select Account is for experienced P2P lenders 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 lend out your capital and interest repayments on a regular basis. The minimum deposit is £20 and you can lend to businesses at rates between 5.95% and 14.25%*** based on our Risk Bands.

Read more about the different accounts.

When lending to businesses, it’s important to remember that your capital is at risk.

*Tax treatment depends on the individual circumstances of each lender and may be subject to change in future. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

**Lend at rates between 5.95% and 14.25% based on LendingCrowd’s Risk Bands. Interest rates are guided by the credit grading allocated to each loan. Higher-risk loans may yield higher 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.

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 our IFISA, you can also transfer existing ISAs to us.

Lend to British businesses

If you’ve opened a Self Select Account you can build your own portfolio of loans using our Loan Market, where there are two types of loans listed.

  • New loans – bid in an online auction where you decide how much you would like to lend to each borrower, and at what interest rate.
  • Existing loans – you can buy loans from other lenders on our Loan Market. There is no bidding involved and you can lend instantly.

If you’ve opened a Growth Account or an Income Account, your funds will be lent on your behalf across a wide range of 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 lent to any one business. 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 loans repay monthly

When you lend 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 lend this money to other businesses to keep earning returns.

Repayments into a Growth Account or Income Account will automatically be used to purchase new loan parts on your behalf, continuously diversifying your 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,

When lending to businesses, it’s important to remember that your capital is at risk. Find out more at our Risk matters page. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Benefits

  1. Make your money work harder*

  2. Get started from just £20

  3. Easy account opening

  4. Low, transparent fees

    *When lending to businesses, it’s important to remember that your capital is at risk.

Types of account

  • Growth Account
    Create an automatically diversified portfolio of business loans with one click

  • Income Account
    Take an income from your loans while your capital is automatically lent out

  • Self Select Account
    Build your own portfolio of business loans using the LendingCrowd Loan Market

Have any questions?

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Lender FAQs

The most frequently asked questions by our lenders.

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Visit our help centre

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 2021. All rights reserved.

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