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Posted: 31 January 2013 16:17:02(UTC)

Joined: 31/01/2013(UTC)
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Hi All,

I'm new to this site / forum, whilst I have made a post in the 'Alternative Finance' topic I thought perhaps it may be better to create a seperate topic for crowdfunding/ p2p/ p2b. Apologies for the doubling up of posts.


I've recently heard alot in the press about crowdfunding/ p2p/p2b and have seen that there are a number of players in the market, I've learned that the main players are Zopa, Funding Circle and Rate Setter, with there being a number of New comers too such as Funding Knight ( and ( ) .

So to cut a long story short, I'm interested to hear from an experienced savvy investor perspective, what everyone's thoughts are on this new alternative finance market . Has anyone had any experience in it ( either as a lender or borrower)? I've noticed that there are various different forms of crowdfunding too, such as equity, debt ect, does anyone have any opinion on which is better in the short/ long/ medium term ?
Any tips on how to approach lending to businesses on these sites?

I look forward to hearing from you, and learning from your experiences.

1 user thanked Lender for this post.
Victoria Bennett on 23/09/2016(UTC)
Clive B
Posted: 31 January 2013 17:18:17(UTC)

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I've used Funding Circle - lending money for interest. You can decide the lending rate and who you wish to lend to and in what amount. I've now pulled most of my money out. The returns after bad debts weren't enough to make it worthwhile. Money made is subject to Income tax rather than CGT and there's no allowance for bad debt. I found that my low volatility corporate bonds were making me more money and I don't have to pay Tax on my corp bonds.
Posted: 31 January 2013 17:21:21(UTC)

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There was a thread on this subject a few months ago. Maybe worth looking at the responses there.


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Peer2businessLender on 18/03/2013(UTC)
arthur death
Posted: 03 February 2013 15:17:04(UTC)

Joined: 03/01/2012(UTC)
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my experience shoud be a warning,to date accountreads:
earnings £1150
gross yield 8.4%!!!
lending appears to be casually easy and chasing late payments so slow that they turn in to bad debts.

including my experience above,two other investments i know of would not invest again
the old mantra is true again:if it appears too good to be true,it probably is
Posted: 19 March 2013 10:20:37(UTC)

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arthur death;17843 wrote:
my experience shoud be a warning,to date accountreads:
earnings £1150
gross yield 8.4%!!!
lending appears to be casually easy and chasing late payments so slow that they turn in to bad debts.

including my experience above,two other investments i know of would not invest again
the old mantra is true again:if it appears too good to be true,it probably is

just out of curiosity Arthur, which lending platform were you using, and how did you go about bidding? Did you have autobid ( or similar apps) set ? Similarly did you do any of your own research or did you rely on the platform ratings?

I've been using FC as well but have recently switched to using new comers due to the better rates of return available at present. I have not enabled any autobid functions and enjoy doing my own research into the financial state of the businesses I'm going to lend to, and take note of the security on offer as well. I've found the platforms really helpful and open and have often asked them questions directly about the businesses listed.

So from my experience alone I'd say that crowdfunding has the potential to make good very good returns for lenders, and this can only be increased through lenders doing their own amount of due dillegence and through not investing large chunks of cash in to a single business.
Posted: 29 March 2013 12:41:38(UTC)

Joined: 29/03/2013(UTC)
Posts: 1

Hi CW Members

I am new to the forum and are using a crowd funding platform to raise finances for my company which is a startup which will be offering shares under the SEIS (seed enterprise investment scheme)

Although I do not have vast experience with investing/investments after working on my plans and aims believe that the SEIS is a great opportunity for investors into early stage companies if the said company qualifies to offer shares under the SEIS - as the tax relief removes the potential risk of a major loss

Investing £10,000 In A SEIS Risks Just £200 Of Your Cash

Former Dragon * Entrepreneur, Doug Richard, who says the SEIS is "One of the most extraordinary incentives ever created"

Over the last few weeks , I have come to the conclusion that this would be a outstanding for an investor who was considering moving abroad as an expat - I say this for the following reasons (and please feel free to correct me if I am wrong as only my thoughts)

If the person considering moving abroad and they owned a second home the CGT could be invested into shares under the SEIS scheme - the CGT which otherwise would be paid to HMRC


The original investment would receive an equity share, and dividends paid to support the expat living expenses while domicile

Dividends paid year upon year whilst original investment grows - which if help in the qualifying company for 3 years would be CGT Free when the shares are sold on in the future or bought back from the company in question

I see this as a win win win situation and one of the great aspects of the SEIS tax relief scheme's

Please leave your thoughts on this , as like I say I am new to the world of investment but eagar to learn as I think investment is a two way thing and each should be working to capitalise on the rewards
kristin alva
Posted: 21 September 2016 08:52:11(UTC)

Joined: 01/04/2016(UTC)
Posts: 5

Crowdfund is the process of raising amount from public by way of internet for your start up the project. Social media is the best mode to attract investors to your project. Once they are 100% sure about your product, then it'll be easier for you to raise money from them. One of the most important point to remember is that, you must be available yourself on internet, so that you'll be able to answer the queries of the investors. I have invested small amounts in three to four projects, in the hope that if one of the project will not do good, other projects will certainly give returns. And the two projects, where I have invested is doing well and hope to receive dividend within short period. Before the investment I go through the subject from this website . Here it has been clearly mentioned that today investors are not investing in purchasing properties but they are investing in start-up projects. And this is fact.
Posted: 21 September 2016 23:10:41(UTC)

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not keen on crowdfunding ....loss of control

or peer to peer as rental property market about to enter tough period with all the tax changes.
King Lodos
Posted: 22 September 2016 22:10:28(UTC)

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I certainly think there's a place for P2P lending

It's essentially how banks make money – and I'd rather invest in the business model directly in many ways

Is the risk/return profile likely to be any better/worse than junk bonds? I think so long as the platform's regulated and able to assess risk properly, it should be comparable ... And it's not like it's easy finding stable assets yielding 5-7% these days
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Victoria Bennett on 23/09/2016(UTC)
Clive B
Posted: 23 September 2016 09:44:07(UTC)

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@ Kwiksave
Certainly with FundingCircle, property loans are clearly indicated, so they're easy to steer clear of if people have doubts about the property market. Having said that, I think all FC loans on property are to property developers not to landlords.
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Guest on 24/09/2016(UTC)
Victoria Bennett
Posted: 23 September 2016 17:25:51(UTC)

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Hello Clive,

I have been involved in crowdfunding for over four years, a long time in crowdfunding. It is the great democratiser; it allows a great idea with a great team, but without access to traditional funding, to get the funding to bring their project to life. It also allows more people to have access to invest in start ups and private companies, and benefit from the rapid growth that can occur in this area. There is still protection via the limits you can invest. If you lose it all, and that can happen, it should be an amount that might hurt, but not leave you destitute.

The whole process is transparent and you can ask the company any questions, and these are shared publicly on the platform. The platforms, have to do their due diligence on the company, and it is thorough. It is then up to you to follow your passion, follow your analysis, and invest where you chose to invest. It is an informed, self-directed investment.

Here is a post to my latest campaign if you want to see the level of detail that you get to make an informed decision. In this case you also get perks/rewards, champagne to be precise,

I am happy to answer any specific questions that you may have on crowdfunding,

Kind regards,

Jade Burgess
Posted: 29 January 2017 16:43:12(UTC)

Joined: 29/01/2017(UTC)
Posts: 1

At college we are doing a unit about film funding.

I'm curious about Crowdfunding and the benefits of it, can someone please tell me about how it benefits the film industry?
chubby bunny
Posted: 16 December 2017 16:12:23(UTC)

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More spam from Pam. Hit the report button and Father Christmas might bring you something special.
2 users thanked chubby bunny for this post.
Micawber on 16/12/2017(UTC), Tim D on 17/12/2017(UTC)
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