LendingCrowd Review

An independent overview of the Edinburgh-based FinTech lender from finance experts Rangewell. 

LendingCrowd is an independent lender specialising in lending to small businesses that are looking to grow. With loans starting from £75,000 to a maximum of £500,000, the lender positions itself as a supportive, responsive resource for SMEs that need capital quickly. 

Before you apply with LendingCrowd, it’s important to assess both the benefits and considerations behind the brand to determine if it’s the right team for you. As experts in the finance sector, we can help you better understand LendingCrowd’s background, lending criteria, funding considerations and more – all of which helps ensure you choose the right lender for your needs.

Read on to discover more about LendingCrowd, or contact us now to discuss your finance requirements and get personalised advice and recommendations to help you get the cash you need to grow.

What is LendingCrowd?

LendingCrowd is a lender offering business loans through its FinTech platform, which promises easy applications and quick decisions on business loans. The business was launched in 2014 and reached a milestone of £190 million loaned through its platform in 2023. 

LendingCrowd is fully authorised by the FCA, but its loans and services are not covered by the Financial Services Compensation Scheme. 

What types of loans does LendingCrowd offer?

LendingCrowd only offers business loans to its clients, but they are designed to be highly flexible and based on the borrower’s requirements and circumstances. You can easily apply for the company’s loan offerings through their digital platform, and all decisions are made quickly, with borrowers being offered terms based on a risk assessment. 

The business loans offered can be used for a variety of business needs, including:

• Working capital and cash flow
• Debt restructuring
• Management buyouts and acquisition funding
• Stock or equipment purchases
• Marketing costs

Whilst business loans can be used to refurbish premises, those looking for specific loans for property development must consider other lenders. 

If you decide to pursue a business loan from LendingCrowd, you can apply for loans of between £75,000 and £500,000, with decisions based on a range of eligibility criteria.

If you’re concerned about your eligibility for a loan or have questions about general business loans, contact Rangewell today to discuss your options before you speak to LendingCrowd. 

Are you eligible for a loan from LendingCrowd?

LendingCrowd has a specific set of expectations when it comes to assessing your eligibility for a loan. The minimum lending criteria are as follows:

• You must be a limited company or LLP owner occupiers
• Business must be based in England, Scotland or Wales
• You must hold two years’ trading history
• Your business must have a turnover exceeding £100,000 and have no active CCJs over £1500

What information do you need to provide? 

Provided you meet the requirements above, you can apply for a loan. However, there are further considerations you need to take into account that will affect the rates you are offered. When applying, the lender will expect to see:

• Two years of accounts showing your financial history so the lender can assess your ability to repay the loan
• Three months’ bank statements 
• Details of any current borrowing and existing debt
• Management information where available – there should be no association with failed businesses in the past two years as this will impact your ability to receive an offer
• Your business plan (whilst the lender states this is optional, providing a strong business plan helps improve your overall offer).

LendingCrowd takes the information provided to assess affordability. This is based on your cashflow position, credit history, business sector, management history, etc. and is used to determine your loan offer. 

Does LendingCrowd offer secured or unsecured lending?

LendingCrowd offers both secured and unsecured loans depending on the amount of credit you apply for. Loans of up to £350,000 can be made with a personal guarantee - but you’ll need to be a homeowner to choose this option, or provide third-party security. 

Loans exceeding £350,000 will instead require a charge or asset security. 

What are the rates and terms? 

LendingCrowd offers different rates and terms depending on the amount borrowed and your affordability. Rates range from 6.65% to 17.95%. 

Terms, or the length of the loan, range from six months to 60 months (5 years). Overpayments of at least £5000 can be submitted at any time without incurring a fee, allowing a business to repay its loan early if required. 

Need a different deal? 

If you’ve applied for a loan with LendingCrowd but received an offer that doesn’t suit your requirements, we can help you improve your application and your eventual offer. Talk to our team today to discuss your options. 

What are the fees and charges?

LendingCrowd charges an arrangement fee of up to 9%, which will be outlined in your initial loan offer. Fees may also be charged if you are late in meeting your repayment obligations. 

However, there are no early repayment fees, so borrowers are free to repay their loans before their term ends without incurring any charge. 

How do I apply?

The application process for a business loan with LendingCrowd is straightforward and can be completed online using the business’s FinTech platform. To apply, you’ll need to sign up for an account on the LendingCrowd website.

Step one: applying via the portal

Once you log in, you’ll be able to start an application. You must upload PDF documents containing your last two years of accounts, and any management accounts up to the end of the last completed quarter. 

You’ll need to fill out various fields including names and addresses for all Directors, your VAT registration number, business information such as employee roster and details of your business bank account. 

If required, the lender will ask further questions about you and your business, such as details of your business’ activities, plans for growth, competitors etc  – so it’s important to have all of the information you need in advance. Completing or updating a business plan will help you get ahead of any potential questions and improve your overall application, so we recommend reviewing yours before making any decisions about lenders. 

Step two: allocating your risk band

LendingCrowd uses the information you provide and its own research to determine your risk bank. A+ implies a stable company with low risk, whereas C+ represents a higher-risk company with potentially greater returns. 

Step three: receiving your offer and accepting the loan

Based on your information and risk band, LendingCrowd will offer you a loan through its platform with all fees and charges outlined ahead of acceptance. If you’re happy with your offer, you can accept it and receive funds in as little as one working day. 

When accepting your loan, you’ll also agree to a repayment schedule and a fixed monthly date for your repayments. 

What if you are rejected by LendingCrowd? 

If you’re rejected by LendingCrowd, don’t worry. There are lots of reasons a lender may choose to turn down a business even if you meet all of the eligibility criteria and provide the necessary information. 

Some decisions may be based on your intended use for the loan, while others may be based on risk or credit history. 

In all cases, don’t let a negative decision stop you from growing your business. Contact Rangewell, and we’ll help you assess your credit requirements and identify lenders more suitable for your needs. 

What to do if your LendingCrowd loan is coming to an end

If you’ve already worked with LendingCrowd and you’re approaching the end of your loan agreement, we’d suggest speaking to our team before making any decisions on taking on another loan or choosing a different lender. 

With independent advice, you may be able to receive a better offer from LendingCrowd itself, or from an alternative lender that is more suited to your new position. 

Need more funding? 

If the £500,000 limit from LendingCrowd doesn’t meet your requirements, we can help. Rangewell work with some of the UK’s most ambitious businesses and a robust network of lenders financing into the millions of pounds. Give us a call now to discuss your needs.