Investment Partners

P2P Lending with LendingCrowd

LendingCrowd
Lily Bridgwood
Written by Lily Bridgwood

About LendingCrowd


LendingCrowd is an award-winning peer-to-peer lending platform that matches investors with UK small and medium sized businesses (SMEs) seeking a business loan. To support a growing community of businesses seeking non-bank funding we provide simple, affordable lending with greater flexibility, straightforward security arrangements, minimum ongoing administration and no exit fees. They pride themselves on their first class customer service, and their Credit Team supports borrowers through the entire application process, meaning that companies deal directly with the decision-makers.

LendingCrowd have created an intuitive low cost platform on which the Loan Market and Exchange operate. They pass on the benefits of this low cost model through to the Borrowers. Thus, better returns for Investors via their simple charging model.

The Loan Exchange


The Loan Exchange is a great place to make immediate investments in small businesses.

Lenders can put their investments up for sale and you can purchase those investments to start earning interest immediately. Investments can be made from a minimum of £20.

Selling on the Loan Exchange

It is quick and easy to list your loan parts for sale, and if you change your mind before a whole loan part has been sold, you can choose to ‘unlist’ it to return it to your investment portfolio. There is a 0.25% fee charged on the value of the loan part sold.

Why use it?

You may want to buy loan parts to diversify your portfolio to help reduce risk, or because you missed out on investing in a company when it was on the Loan Market. You can also sell investments to free up capital so you can invest in other loans. The Loan Exchange gives you the chance to purchase an instant investment, without having to wait for a loan auction to finish, to start earning interest immediately.

The Loan Exchange allows you to:

1) Quickly invest
2) Increase your liquidity as an Investor
3) Invest into companies that have already successfully raised financing

Tax Implications


Innovative Finance ISA 2016

In the Chancellor’s 2015 Summer Budget he announced that P2P investments will be part of the list of ISA-eligible investments from 6th April 2016, and therefore LendingCrowd investors will be able to invest their ISA allowance by lending to others without paying tax on the interest they earn. This could save investors significant amounts on tax each year.

Tax

Returns from LendingCrowd are paid without tax being deducted so you must declare these as part of your tax return.

Bad debt relief for the Peer-to-Peer industry

This was announced in the Chancellor’s 2014 Autumn Statement, and will allow from April 2016 tax relief on bad debts incurred on P2P loans against other P2P income.

Why Invest with LendingCrowd?


Great returns & low fees

Select the interest rate you seek given your risk appetite with rates starting at 5.95%*.

Clear transparent fees – 1% annual fee on the amount of money you have lent, collected in monthly sums when you receive a payment.

Easy, Convenient & Simple

Simple and quick online signup. Invest from as little as £20.

Features such as Autobid enable those who prefer to take a passive portfolio management approach.

Your choice of UK Businesses in which to invest

LendingCrowd gives you the opportunity to choose the type and size of UK businesses you wish to fund, from high tech to more traditional businesses.

This enables you to shape the risk profile of your portfolio and the duration for which you wish to invest.

De-risk through multiple loans

Spread your investment across a number of loans, allowing you to diversify your risk, and so protect your investment.

Advantages of Borrowing with LendingCrowd


  1. Key Loan Factors
  2. For Limited Companies/LLP’s you can borrowfrom £5k up to £250k
  3. For Partnerships and Sole Traders you can borrow from £25k up to £250K
  4. Loan terms up to 5 years
  5. Low, transparent fees from as little as 2%
  6. Indicative rates from 5.95%

Quick, Simple Online Application

The easy application process takes 30 minutes with a fast decision turnaround. Money is deposited into your account within 5 days once security over the loan has been set up.

Scope to Repay your loan early
Repay your loan at any time to reduce interest costs with no repayment penalties or fees.

A crowd of Investors interested in your business
People who may promote your business and help you grow.

Please visit LendingCrowd for more information about their investment opportunities. Your Capital is At Risk. 

About the author

Lily Bridgwood

Lily Bridgwood

Lily is the Partnerships Associate at OFF3R. She has previous work experience in both the corporate and start-up environments. She joined the OFF3R team in October having recently graduated with First-Class Honours in International Business from the University of Edinburgh.

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