Crowdfunding & Peer-to-Peer Lending
A Crowdfunded Business Loan is available to established, profitable businesses with clean credit records. Loans are generally unsecured (up to £250,000) and typical interest rates are 7-11%
WHAT IS REQUIRED
Some bank statements
Something else
Hat measurement
WHY CHOOSE IT?
It's really good
Typically, you can receive a cash advance loan equivalent to your average monthly turnover. You repay this amount, plus a fee, by agreeing to give a small percentage (usually 10-15%) of all card receipts to the advance provider until the finance is paid off and the balance is cleared. This is done automatically via the card terminal with each transaction, and you don't have to change your card processor. Unlike traditional bank loans, there are no time constraints on this. In quieter times when less money is coming through your card terminal, you'll pay less money back. In busier times when more money is coming through, you'll pay more money back.
FAQs
Will I have to deal with each lender individually?
No. This is done by the loan arranger. You just deal with one entity and make one repayment every month.
What are the fees to arrange this loan?
It generally depends on the term of the loan with a sub 3 year loan costing 3% and a 4 or 5 year loan costing 4%. The fees are deducted from your loan advance (so if you decide against the loan at any stage in the process you still pay no fee) and the fees are the same whether you arrange your loan via Choice Loans or direct with the crowdfunder themselves (we get paid by taking a share of the commission you would have paid them anyway).
How long does it take to arrange?
Usually 7-10 days from start to finish but it depends on the loan and which platform you go with.
What if I want to repay early?
This can be done without penalty.
Will details of my business be made public?
This depends on the platform used to arrange your loan. Some will disclose your outline financial information to registered lenders on their platform and others offer complete anonymity. We will make you aware of your options here.
Are Crowdfunded Business Loans regulated?
Yes, all Crowdfunded Business Loan platforms we deal with are regulated by the Financial Conduct Authority. We are also regulated directly by the Financial Conduct Authority (License No. 63877).
Choice Loans is a broker, not a lender. We will connect you with a lender suitable for your needs or, if appropriate, a specialist broker. We do not charge you an upfront fee but, if your application is successful, a broker commission may be charged.
© Choice Money Limited 2025