Crowdfunding and Peer-to-Peer Lending

What is Crowdfunding?

Crowdfunding, crowdlending or peer-to-peer lending is a way for you to raise finance by tapping into the ‘crowd’ and asking for their financial support.

Crowdfunding came about in response to the onset of the credit crunch when banks become reluctant to lend to businesses. The crowdfunding platforms realised there were individuals (the “crowd”) looking for better returns on their money and businesses looking for finance, so why not bring the two parties together? And so crowdfunding was born.

What Type of Crowdfunding Is There?

You can sell shares in your business via euqity crowdfunding platforms or obtain a more tradtional loan via crowdlending/peer-to-peer lending platforms where you borrow and pay back over an agreed period of time.

Their attraction lies in the speed within which money can be accessed. You could have money in your bank account anywhere from one week to three weeks from application.

Why Use Crowdfunding?

Crowdfunding has a number of benefits over traditional sources of finance:

– Typically no lengthy business plans are required
– Speed in accessing finance; it can take anywhere from 1 weeks to three weeks
– In the majority of cases security to back-up the loan is simply a Personal Guarantee if you are operating via a Limited Company

What Can I Finance Via Crowdfunding?

You can raise finance to utilise in your business for a large variety of reasons from boosting working capital to the purchase of machinery and equipment.

What Type of Businesses Are Eligible?

The majority of crowdfunding platforms will only deal with Limited Companies which have been trading for two years or more. Some crowdfunding platforms have broken ranks by including sole traders and partnerships.

What Do I Do Next?

To find out more simply send us an email via the Contact Us box at the foot of this page or call us on 08456 809 728

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What Our Clients Say

  • Further to your recent presentation at LEAD Wales just wanted to say it was very refreshing to see somebody talk passionately and positively about finance, very insightful!

    Kay Hyde | Hyde & Hyde Architects
  • I wanted to thank you for such an insightful, energetic, and entertaining talk at the Kevin Green Wealth event on securing funding and creating a successful plan. It was brilliantly executed and a pleasure to listen to and the ideas I’ve learned are definitely going to help me in going forward.

    Max Cooper of Manchester
  • Rob delivered a series of 3 workshops aimed at understanding how finance houses look at finance propositions with the aim for us as a team to deliver more of a bespoke offering to our customer base. The training was delivered to a mixture of staff who work with new businesses start-ups and existing established businesses across Mid & South West Wales. Rob delivered the training with an abundance of passion and has really helped my team look at financial propositions in a different light, many thanks again Rob and I look forward to work with you in the near future.

    Shayne Yates | Welsh Government Regional Centre Service Mid Wales
  • Hi Rob, it was so interesting and entertaining listening to you at the Kevin Green Wealth Coach Workshop in Reading this weekend! I didnt realise you can find Finance proposals such fun!. Brilliant tips! Thanks.

    Gaz Jabeen | Bollywood Burn Out
  • Rob kindly agreed to attend the recent Pontypridd RFC sponsors networking evening and delivered what can only be described as an excellent talk on 5 Tactics to Boost Your Business and Your Profits. He kept the audience engaged throughout and the feedback from everyone was excellent. Rob is very knowledgeable on business and finance and on top of that is a genuine nice guy. We hope to have him back at a future event and I have no hesitation in recommending Rob’s services.

    Angela Holloman-Coombes | Connective HR

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