LendingCrowd is one of Edinburgh’s financial technology companies that focuses on the alternative lending market. The company was established on October 1, 2014 by Stuart Lunn and Bill Dobbie. Its main service is to help small and medium-sized enterprises (SMEs) raise loans from individual investors through one type of crowdfunding called crowdlending, which is included in the alternative finance sector. The company has a competent team of credit analysts who perform comprehensive risk assessment on all borrowers to make sure that the lending opportunities presented to investors are credible.
The company allows individual investors with different levels of financial capabilities to invest on its platforms. Majority of new investors start lending for as little as £100. This amount is normally increased as the investors’ confidence levels in the platform increase after understanding the potential returns and risks of the business. The main focus of the company is on SMEs that need loan financing for reasons such as working capital, growth, and expansion.
LendingCrowd’s main goal is to become one of the top alternative finance providers in the UK.
The performance of the business has been gradual since its inception in 2014. To date, a total of 34 loans have been completed on the platform. This has amounted to £1.75 million that has already been loaned to SMEs in Scotland and in other parts of the UK. LendingCrowd’s main goal is to become one of the top alternative finance providers in the UK.
Stuart Lunn and Bill Dobbie ventured into the alternative finance market after realizing that there was an existing gap in the Scottish market in relation to financial technology services. This gave them the reason to focus on one main geographic area. In addition, the two have strong backgrounds and track records in stockbroking and technology industries, which gave them a competitive advantage in venturing into crowdlending.
Driving investors to the platform has been the toughest experience for the company, but their primary focus is to continue increasing public awareness of crowdlending
The two founders of the company have been funding the business throughout. They have also committed their personal cash to each loan. Driving investors to the platform has been the toughest experience for the company, but their primary focus is to continue increasing public awareness of crowdlending. The company recently won the Herald Digital Business Award in the category of business to business (B2B).
The Scottish government has also been committed to improving the alternative lending market. The government has launched initiatives such as tax-free interest personal allowance, Innovative Finance ISA, and British Business Bank (BBB). These initiatives are aimed at facilitating funding for SMEs in Scotland.
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