Debt Based Crowdfunding

image page headers payg business finance debt based crowdfunding

Debt Based Crowdfunding

First of all I have spent lots of time sourcing and partnering with some of the leading names in debt based crowdfunding. First of all my service includes:

  • Business proposal assessment
  • Helping clients select the right marketplace.
  • Marketplace Applications.

The process is very easy to follow. Just choose your prefered debt based crowdfunding platform. Then complete the relevant expression of interest form. On receipt I will then review your business proposal. Noteworthy, should your business be selected as a client I will provide the mentioned service free of charge.

Peer to Peer Lending

Debt based crowdfunding is often referred to as Peer 2 Peer (P2P) or marketplace lending.

I think it’s fair to say that different platforms like to create their own unique terms for debt-based crowdfunding. However, whatever the term the process is still the same. In the article debt based crowdfunding, you will learn  how investors lend money to business owners in return for capital and interest repayment.


Debt Based Crowdfunding

More than 310 loans to date Average loan of £90,000 46-month average term Lending rates from 5.95% Loans across multiple sectors

LendingCrowd brings lenders and borrowers together, speeding up the financing process and introducing your business to a new type of lender. It’s a modern and flexible alternative to bank borrowing, and it’s faster too.

  • Since we launched in 2014, LendingCrowd has grown rapidly, facilitating more than £30 million in loans to SMEs. Specialists in marketplace peer-to-peer lending, and the only one with headquarters in Scotland. They access finance from private investors to provide competitive loans of up to £500,000 to British SMEs.

Quick Checklist

  • Limited company or a limited liability partnership - £5,000 to £500,000
  • LTD/LLPs need 2 years trading history with T/O £100k
  • Sole trader or partnership - £25,001 to £500,000
  • Profitable, good credit, no defaults or judgements
  • Loan term 1 - 5 years
image Lendingcrowd debt based crowdfunding peer to peer (2)
image debt crowdfunding equity finance through crowdfunding Lendingcrowd debt based crowdfunding peer to peer
image equity finance through crowdfunding rebuilding society debt based crowdfunding peer to peer (2)

Rebuilding Society

Debt Based Crowdfunding

The company started accepting loan applications in September 2012. They funded their first deal in January 2013. Today they have facilitated over £10m and counting in loans from more than 200 applications for debt based crowdfunding. Rebuilding Society provide  commercial loans to businesses through a community of lenders. 

image rebuilding society debt based crowdfunding peer to peer

Quick Checklist

  • Limited companies, LLPs, PLCs, and Social Enterprises - £25,000 - £500,000
  • 2 years trading history with 2 sets of annual accounts filed
  • Good credit history required (no CCJs over £250 outstanding)
  • The business must be profitable and VAT registered
  • Directors/Partners must be UK residents
  • Average quarterly turnover greater than £50k for the last 4 quarters

Americas LendingClub

Located in downtown San Francisco, California, Lending Club (NYSE: LC) opened in 2007 with one simple mission: create a more efficient, transparent and customer-friendly alternative to the traditional banking system that offers creditworthy borrowers lower interest rates and investors better returns. You can check out for yourself what rates are available ( just click this link to visit LendingClub)

Eligibility Checklist

  • Borrow between $5 - $300k
  • Trading at least 12 months
  • At least $50,000 in anual sales
  • No recent bankruptcies or tax liens
  • Own at least 20% of your business
  • At least fair or better personal credit

What is P2P lending and why has it grown in popularity over the last few years?

P2P Lending is where investors lend to people and businesses. Money is lent in return for capital and interest repayment

Over the years debt-based lending has grown in popularity because of banks tightening their credit control processes. As more and more businesses where turned down by the more traditional lenders.

Business owners seek out an alternative way to raise funds to grow their business. Hence, research from the government-owned British Business Bank shows that the total value of peer-to-peer business lending across the UK rose by 51% to almost £1.8 billion in 2017. You can read more about it in my recent article  debt based crowdfunding speeding up the borrowing process.