18th August 2022
As of 1st August 2022, Crowd2Fund modified its Credit Policy. These adjustments to our credit policy reflect the current market and help protect investors from potential losses and maximise their earnings.
We have further improved our internal credit risk indicator, which now includes variables outside the standard publically known data. We have included data on both statutory and management accounts, tangible net worth, net gearing and the ability for a business to service the loan. This acts to provide a better measure of business performance, helping investors make a more informed investment decision and also help Crowd2Fund more accurately price the loan.
We now carry out more thorough pre-screening processes such as video calls with applicants & ID checks, which aims to further increase the safety and security of our platform. Mandatory video calls with every applicant also helps us understand the business in more detail.
Our experienced credit risk team manages a comprehensive due diligence checklist for every business that gets listed. There are 100s of variables that get checked, we’ve added more checks for each business.
Crucially and arguably the most important change is that the potential APR that investors can earn has increased to 16%. This is to reflect the market rate and also to allow us to incentivise investors thus driving more liquidity into the marketplace. Loans are now being offered from 12% to 16% based on the types of listings. However, we plan to broaden this out and list lower risk deals as the platform scales.
Finally, the policy changes include the launch of our secondary market, or Small Business Exchange. This is a game-changer for our platform as it enables investors to diversify their portfolio and exit their investments. Over the last few years, we've implemented groundbreaking improvements, all designed to maximise your investing experience.
Read more here.
