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Platform Analysis: LendingCrowd

Key Information

Founded:
January 2014
Company No:
468392
FCA Permission:
Fully Authorised
FCA Number:
670991

Account Details

Account Types:
Self-Select, Growth, Innovative Finance ISA (IFISA)
IFISA Status:
Unavailable
Investment Structure/Bid Type:
Autobid and Manual
Loan Type:
Business

Product Name

Growth Account

With the Growth Account, capital is spread across 20 different loans through the LendingCrowd Loan Market. No more than 5% of an investor's funds will be invested in any one loan. All repayments will be automatically reinvested.

Product Details

Term:
Ongoing
Min Investment:
£1,000
Max Investment:
No Max
Advertised Rate:
6%

Product Name

Self-Select Account

With the Self-Select Account, investors are required to manually select the loans they wish to invest in. Investors can buy and sell loans on the LendingCrowd Loan Market.

Product Details

Term:
Bespoke
Min Investment:
£20
Max Investment:
No Max
Advertised Rate:
5.95% - 16.25%

Actual Net Returns v Estimated

Actual Default v Estimated Bad Debt v Actual Bad Debt

Amount Lent & AUM

Loan Purpose

Loan Region

Overview

LendingCrowd is a peer to peer lending platform that connects investors with UK SME business borrowers. Launched in 2014, the P2P platform is the only Scottish recognised P2P lender. It was one of the earliest platforms to offer the Innovative Finance ISA.

Risk and Security

The principal risk is a large number of borrowers default on their loan commitments. This may be a result of economic conditions or a reflection of LendingCrowd’s credit sanctioning. Diversification is the primary security measure offered by LendingCrowd. Investors in the Growth and ISA accounts will have their capital diversified across multiple loans, reducing the risk of a default impacting their overall investment. For investors in the Self Select account, they are responsible for selecting loans and, ultimately, their exposure levels.

Recovery Process

When a loan falls into default and there appears to be no clear indication of how and when the payment will be received, recovery action will be taken. This will include reference to LendingCrowd’s Panel of Experts which includes solicitors, accountants and debt collectors who will provide guidance or act on the platform’s behalf to recover as much capital as possible.

Withdrawing Funds

Investors can withdraw funds by selling their investments on the LendingCrowd Loan Market. There’s a fee for all withdrawals and the fee depends on the account selected. The time taken to access funds depends on how quickly an investor’s holdings can be sold and relies on new investors substituting the loan commitment.

Platform Failure

If LendingCrowd ceases trading, a third party service provider will step in and continue servicing loan repayments. LendingCrowd has appointed Nostrum Group as its standby servicing partner. All client funds are held in a separate Barclays Client Bank.