Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
money
June 24 2020

Crowd2Fund outlines CBILS rates

Michael Lloyd Industry News, News, SME News, Top 3 coronavirus business interruption loan scheme, Crowd2Fund, Future fund

Crowd2Fund has outlined the rates it will offer businesses when it relaunches to deliver the coronavirus business interruption loan scheme (CBILS).

The peer-to-peer business lender plans to relaunch its platform in July and offer two government-backed support schemes to help small- and medium-sized enterprises, as part of its Reboot Britain Campaign.

The platform, which paused new investments and its secondary market in April, will launch the government-backed CBILS at 9.5 per cent and will continue to offer higher risk venture debt loans at 15 per cent.

Crowd2Fund will also offer the future fund, providing interest-only returns on investments at around four to eight per cent APR where the debt investment can be converted into company equity at a discounted valuation for investors.

“These products offer a truly unique opportunity to secure the success of the very best British entrepreneurs, who are building the future of the economy and stimulating job creation,” Crowd2Fund said in a blog on its website.

“Crowd2Fund will be using this as an opportunity to grow into a global operation, while also providing an international launch-pad to the forward-thinking global entrepreneurs, in the most future-focused sectors.”

In a separate blog, Crowd2Fund said it has strengthened its credit processes.

The platform has put additional loan monitoring checks onto its exchange and said in order to inform its revised credit policy, it is undertaking a review of every active client on the platform. The business lender said it will take action if they show signs of distress.

Read more: Crowd2Fund reveals £4.2m of loans sold on secondary market to date

Crowd2Fund has also reviewed and updated its compliance processes.

When it relaunches, there will be a new investor onboarding journey, through which investors will be asked a series of questions to validate their understanding of the platform and investment products, before being able to log in.

In another separate blog, Crowd2Fund said since March, the platform implemented an emergency action plan to help mitigate the potential damages for both businesses and investors due to Covid-19 and this is starting to pay off.

Almost all of its distressed businesses are now accessing emergency credit, resolving themselves or in some circumstances, being restructured into a revenue loan, a structure that gives businesses more flexibility during periods of low revenue.

The businesses that contacted the platform were directly affected by the lockdown. They were mainly firms in the hospitality sector, beauty, education, health or non-essential shops and businesses that were not able to move their trading online immediately.

Crowd2Fund directed companies to government grants and offered the option to switch from fixed term loans to revenue loans, giving businesses a clear structure for them to repay after the lockdown.

LendingCrowd head of origination joins business finance platform Businesses awaiting a £150k average payment for pre-lockdown work

Related Posts

Mike Horton head shot Colour

Industry News, News, Top 3

Quantuma hires former Assetz Capital recoveries manager

open banking concept diagram, api financial technology, fintech

Industry News, News, Open Banking, Top 3

Fintern launches consumer lending driven by open banking

Lawyers wooden gavel over the flag of Estonia

Global News, Industry News, News, Top 3

Grupeer launches legal action against loan originators

Popular posts:

  • Chancellor unveils recovery loan scheme
  • Budget outlines plans for £15bn of green bonds in 2021
  • FCA warns The House Crowd investors against using…
  • Government to launch replacement future fund scheme
  • BBB sets out further details on recovery loan scheme
  • Cyan Finance launches IFISA to help investors go green
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by