LendingCrowd
| Ltd. | |
| Founded | United Kingdom (2014) |
| Founders | Stuart Lunn, Bill Dobbie |
| Headquarters | Edinburgh, Scotland, UK |
Area served | UK |
| Products | P2P lending |
| Website | https://www.lendingcrowd.com/ |
LendingCrowd is an online peer-to-peer lending company, based in Edinburgh, Scotland. As the first Scottish based crowdlending firm, LendingCrowd has created a platform that enables investors to support small and medium-sized businesses by lending personal capital through small loans whilst earning a monthly interest payment.[1]
History
Launched in 2014, LendingCrowd is the trading name of Edinburgh Alternative Finance Ltd. and was founded by Bill Dobbie and Stuart Lunn.[2] Since September 2014, LendingCrowd has processed through its platform £1.2 million in loans for 23 SME’s all across the UK.[3]
The Platform
LendingCrowd has developed a platform that is open to anyone. It operates on an order-driven exchange where the most competitive bids fund the loan application, providing the borrower with the lowest interest rate on their loan. Investors have a choice of risk categories, with corresponding returns, and a minimum investment of £20. Loans on the platform are secured by a combination of personal guarantees and floating charges or debentures. LendingCrowd charge a one percent annual management fee against funds loaned out.
Credit Approach
LendingCrowd has developed a rigorous credit approach including an in-house proprietary risk band modeler called ExpertLender. With over 100 years of combined experience the firm’s credit team evaluates all the information provided and then ExpertLender is used to calculate the Risk Band. [4]
Risk and Regulation
Financial Conduct Authority
In December 2012 the UK Government announced that it was intending to regulate the peer-to-peer and crowdfunding industry from 2014. A consultation document was published in March 2013 and the FCA published the final rules in 2014. [5] [6] LendingCrowd is authorised and regulated by the Financial Conduct Authority under these crowdfunding regulations.
UK Crowdfunding Association (UKCFA)
LendingCrowd is a member of the United Kingdom Crowdfunding association and their Head of Corporate Affairs Seema Paterson was appointed as a director of the UK Crowdfunding Association in June 2015. [7]
References
- ↑ "Dobbie unveils crowd-lending site for SMEs | Herald Scotland". heraldscotland.com. Retrieved 2015-07-06.
- ↑ "LendingCrowd a Scotland first | Invest Edinburgh". investinedinburgh.com. Retrieved 2015-07-06.
- ↑ "How more firms are opting for crowdfunding route - The Scotsman". scotsman.com. Retrieved 2015-07-06.
- ↑ "Technology entrepreneur Bill Dobbie launches new 'crowdlender' business | Daily Record". dailyrecord.co.uk. Retrieved 2015-07-07.
- ↑ "Government regulation to be brought in for peer-to-peer lending in the UK to formalise crowdfunding | Growth Business UK". growthbusiness.co.uk. Retrieved 2015-07-07.
- ↑ "The FCA’s regulatory approach to crowdfunding over the internet, and the promotion of non-readily realisable securities by other media | FCA". fca.org. Retrieved 2015-07-07.
- ↑ "Seema Paterson appointed director of UK Crowdfunding Association | UKCFA". dailyrecord.co.uk. Retrieved 2015-07-06.