PROPERTY peer-to-peer lender CrowdProperty has launched a £600,000 crowdfunding campaign on Seedrs.
It said on Monday that the fundraise is already more than 100 per cent funded by existing investors and customers but has now been opened to the wider public.
The announcement follows recent news that an unnamed financial institution has committed to lend £100m via the platform over the next one to two years.
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“Having proven the systems and processes prior to our last equity fundraise, since then we proved that we can rapidly scale the business with investment, building up an exceptional rate of direct origination of quality property projects,” Mike Bristow, chief executive of CrowdProperty, said.
“This, coupled with the recent £100m backing from a major institution and an engaged base of retail lenders, provide very strong lead indicators for our next phase of growth.
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“SME property developers are poorly served by traditional lenders yet are increasingly important in tackling housing under-supply and developing the 300,000 homes needed every year to meet the nation’s demand.
“CrowdProperty is exceptionally well placed to serve this market better given a fundamental understanding of property professionals’ needs and pains, offering a deep expertise-led service proposition and providing property professionals completing quality property projects with quick, straightforward finance. This is the new era of project finance.”
CrowdProperty says it has funded the development of 500 British homes worth more than £80m with over £30m of property project loans between private individuals and UK professional property businesses.
It offers retail lenders eight per cent annual interest from loans secured against properties.
The minimum loan size is £500 and loan terms are six to 24 months. The platform says it has a 100 per cent capital and interest payback track record since launch in 2014.
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