InvestingZone Review

Last post: Jun 30, 2014

A review of the peer-to-peer lending platform InvestingZone

It can still be difficult for many UK businesses, especially those that have only recently been established, to raise much needed finance from the likes of banks and building societies. Here at Choice Loans, we have many years experience of arranging finance for such companies as well as SMEs through providers of alternative sources of finance including crowd funding schemes. Below we provide a review of one such scheme by the name of InvestingZone that was established in 2013. They help arrange equity based funding.

Who can apply for funding?

Funding is available to companies in the UK that are either involved in the early stages of development or to established SMEs.

How much can be funded?

The minimum is £5,000 and there is no maximum. All funding is on an unsecured basis.

What can the monies be utilised for?

The funds can be used for a variety of purposes such as helping the business through a difficult trading period that often happens with recently set up companies. You could use the monies to assist the business grow by developing a new product or to help with entering a new marketplace that may require a significant spend on advertising.

What fees are payable?

No fees are payable to produce a pitch and fees are only payable by those companies that have been able to raise funds. A Transaction fee of £1,500 plus VAT is payable to cover legal costs although if the case is more complex this figure may be higher. A fee of 5% plus VAT of the amount raised is payable to InvestingZone. A payment processing fee of 0.5% of the funds transferred is payable to GoCardless. InvestingZone has an option over 1% of the issued equity.

What process is involved?

You create your pitch online including such things as what your business idea is, the amount sought and what percentage of your shares you are prepared to give up in exchange for the amount raised. InvestingZone will review the pitch to decide if it is completed correctly, is acceptable and can be made available for viewing by potential investors. It is then sent to E-Synergy Limited to be approved who will check certain information about the company and make sure that any claims are clear, not misleading and fair. Once approved, the pitch is available for potential investors to view on the website of InvestingZone to consider if they wish to invest and purchase shares in your company. They have 60 days in which to do this. To provide some cushion against last minute dropouts you will be expected to fund 110% of the amount you believe you require (pitch target). If 90% of the pitch target is funded the legalities will be completed and the investors will release their monies and then receive their share certificates. If the pitch target is not funded to that level the pitch will be withdrawn. We do hope that you have found the above review informative. Choice Loans has an experienced and professional team available to answer any questions about InvestingZone. Feel free to call us on 0845 1260350.