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Don’t invest unless you're prepared to lose money. This is a high-risk investment.
You may not be able to access your money easily and are unlikely to be protected if something goes wrong.
Take 2 mins to learn more.
Looking for a way to build a team of investors to help your business grow?
4th May 2022
At Crowd2Fund we’re a community of entrepreneurs, passionate about championing others and helping innovative businesses to achieve even more success. We’ll promote your business to our high-value audience online and via our newsletters, strong social following, events and sometimes even create a short film promoting your business. Learn more about how our revolutionary platform can help your business in our guide. Getting a loan from Crowd2Fund is different from getting a bank loan, as all our capital is exclusively raised from private individuals. We believe this type of capital is higher quality than a bank loan or institutional capital because of the additional benefits it brings to your business - we call it ‘Smart-Money’.
Our unique platform not only gives you access to the capital you need but also enables you to incentivise investors further by offering them a tangible reward in addition to their returns (for example, an exclusive discount or perks). By joining Crowd2Fund you’ll become part of our 15,000-strong community of entrepreneurs and entrepreneurial investors. We’ll promote your business to our high-value audience online and via our newsletters. Check out this video compilation of some of our favourite businesses:
It's not just investment - we accelerate you. Raise up to £1m from 6% and build your community of sophisticated investors.
At Crowd2Fund we offer various funding solutions as listed below:
1. Fixed Term Loans
Suited to established businesses demonstrating a track record of profitability. Investors will generally expect security for the loan, in the form of assets, debentures, or personal guarantees of the directors. Our loans start at 6% APR, with terms of up to 5 years and you can borrow up to £1m.
2. Revenue Loans
Revenue Loans are perfect for a new business that needs to manage cash flow closely. Your monthly repayments are flexible, so in the busy months you pay off your debt, and in the quiet months you just make minimum payments. Revenue Loans start at 6% APR, with terms of up to 5 years.
3. Interest Only Loans
Specifically designed for project-funding. You decide if you want to make interest payments monthly, bi- monthly, or quarterly, and the full capital only becomes payable on maturity. Crowd2Fund Interest-Only Loans start at 6% APR, with terms of up to 5 years.
4. Equity
Good for early stage businesses looking for growth funding. Investors will want to understand what progress your business has made and what stage growth it’s at. Crowd2Fund fees are 6%.
5. Donations
Not-for-profit businesses launch or get support for philanthropic projects, such as social enterprises or environmental causes. This is a great way for Not-for-profit organisations to increase their donation base substantially. We want to support your cause, so we do this all free of charge.
We believe that finance needs to be fast, fair and flexible to meet today’s demands. Our team is passionate about supporting you on your journey to success because when you win, we win.
To find out more or toapply for finance, contact us at:info@crowd2fund.comand our team will be more than happy to review your business and provide a free consultation.
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Past performance and forecasts are not reliable indicators of future results.
Your capital invested is not covered for compensation in the event of a loss by the FSCS.
Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.
Risk summary for P2P agreements or P2P portfolios
Estimated reading time: 2 min
Due to potential for losses, the Financial Conduct Authority (FCA) considers this
investment to be high risk.
What are the key risks?
You could lose the money you invest
Many peer-to-peer (P2P) loans are made to borrowers who can't borrow money from traditional
lenders such as banks. These borrowers have a higher risk of not paying you back.
Advertised rates of return aren't guaranteed. If a borrower doesn't pay you back as agreed, you
could earn less money than expected. A higher advertised rate of return means a higher risk of
losing your money.
These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce
the risk of the investment or protect you from losses, so you can still lose all your money. It
only means that any potential gains from your investment will be tax free.
You are unlikely to get your money back quickly
Some P2P loans last for several years. You should be prepared to wait for your money to be
returned even if the borrower repays on time.
Some platforms may give you the opportunity to sell your investment early through a 'secondary
market', but there is no guarantee you will be able to find someone willing to buy.
Even if your agreement is advertised as affording early access to your money, you will only get
your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take
longer to get your money back.
Don't put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky.
Spreading your money across different investments makes you less dependent on any one to do
well.
A good rule of thumb is not to invest more than 10% of your money in high-risk-investments.
The P2P platform could fail
If the platform fails, it may be impossible for you to collect money on your loan. It could
take years to get your money back, or you may not get it back at all. Even if the platform has
plans in place to prevent this, they may not work in a disorderly failure.
You are unlikely to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS), in relation to claims against failed
regulated firms, does not cover investments in P2P loans. You may be able to claim if you
received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS
investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance.
If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn
more about FOS protection here.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA's website here.
