Crowdfunded Business Loan

What is a Crowdfunded Business Loan?

Crowdfunding is the process of borrowing from several small investors simultaneously, instead of just one larger financial institution. By cutting out the middleman, these types of peer-to-peer business loans can often be achieved at a cheaper rate. To qualify for crowdfunding, your business must be profitable and prove you are able to make repayments. Crowdfunders look at historical data and won't lend against projections.

  • Unsecured business loans of up to £250,000 for terms up to five years are available
  • Secured business loans of up to several million are subject to asset quality, credit checks and LTV
  • You must be an established business, usually with two years' trading history
  • The business must have clean credit, no CCJs or recent defaults

Peer-to-peer (P2P) business loans

The concept has existed in the UK since about 2010 and in that time almost £1bn of loans have been issued. Loans are managed centrally so that only one agreement is signed and one monthly payment made, so they look and feel like regular loans. Our job is to navigate you through the many crowdfunding platforms, ensuring you're applying where you have the greatest likelihood of success.


To learn more either complete our Enquiry form opposite or call us on 01494 410 125

Are you looking for a Crowd Funded Business Loan?

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What is needed to apply

Applying for crowdfunded business loans doesn't have to be difficult. Here's what you need to apply.

  • Eligibility Criteria  You must be an established business with a minimum of two years' trading, with clean credit and sufficient profitability to afford the loan.
  • Documents Required Full financial accounts, recent bank statements and details of credit agreements, as well as an application form. 
  • Additional Comments  The process takes one to two weeks from receiving an application to paying out the loan.

FAQ

  • 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?

     To some degree, yes, but not fully in the public domain. Your company financials and details will be disclosed to any registered lender on the crowd funding platforms as this is necessary to enable investors to make a lending decision. They will not be disclosed beyond this.

  • Is this 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 Customer Reviews

To learn more or to apply for a Crowdfunded Business Loan please either fill in the call back form or call us on 01494 410 125 to discuss your options without charge or obligation.