Utilise modern and popular crowd funding to get flexible business finance
A very modern form of business finance, but definitely something to give consideration to. Crowdfunding and peer to peer lending mean that instead of borrowing from a bank for traditional lender you are in effect borrowing from several individual investors who are working together to offer larger sums of business finance. The overall process is arrange by a singular source which would be a registered and regulated crowdfunding platform, so you only have to deal with them and they manage the individual investors. It’s a win for you as you can get unsecured business loans of over £250,000 and it a win for the investors as they can invest whatever they can afford and make interest on it higher than they would by putting the money in the bank.
To gain crowdfunded lending your business must have been trading for more than 2 years and be profitable.
Crowdfunded Business Loans FAQ
Do the investors know who they are investing in?
No, it is all kept anonymous. The investors just invest into the crowd fund and receive their interest during the repayment period.
What are the fees for crowdfund lending?
The exact fees depend on the deal that is set up but a 3 year deal tends to charge around 3% fee, longer term lending tends to charge around 5%. These fees are deducted from your loan advance, so no need to worry about paying these upfront.
How quickly can Godwin Austen arrange crowdfunded lending?
Most crowdfunded loans can be arranged within 10 working days.
Can I repay early?
Yes, and with no penalty charges.
What documents do I need to provide when applying for crowdfunding?
You will need to supply your company accounts and 3-6 months of recent bank statements.
If all of this sounds good and you think a Crowdfunded business finance is the product for you, please give us a call or email us to make contact.
Or if you feel that our crowdfunded business loans are not suited to your needs please check out our other business finance services.