LendingCrowd review: larger business loans for established UK companies

LendingCrowd is an Edinburgh based business lender that provides larger fixed term loans to established limited companies and LLPs across Great Britain. It focuses on loans of £75,000 and above, which puts it in a useful middle ground between small online lenders and the high street banks. Smart Funding Solutions is an independent broker, so we can compare LendingCrowd with other lenders for the same amount before you apply.

01About LendingCrowd

LendingCrowd launched in 2014 with the aim, in its own words, of funding the ambitions of businesses the length and breadth of Britain. It is the trading name of Edinburgh Alternative Finance Limited, a company registered in Scotland. LendingCrowd says it has delivered more than £600 million of lending through over 4,000 loans since launch, and it remains active today.

Its loans are aimed at growth and working capital for businesses with a proven trading record, rather than start ups or very small borrowers. Applications are made online, and LendingCrowd says it aims to give fast decisions, with funds able to arrive on the same day once a loan is approved and the paperwork is complete.

LendingCrowd is one of the lenders on our panel. Smart Funding Solutions is an independent broker and is not part of LendingCrowd.

02What LendingCrowd funds

LendingCrowd offers business term loans with these headline features, taken from its website:

LendingCrowd also offers short-term business finance over 12 to 24 months. Businesses use its loans for stock, cash flow, improving premises, acquisitions and refinancing existing debt. A typical example would be a £250,000 loan to fund expansion; our page on the £250,000 business loan explains what lenders expect at that level.

03Who LendingCrowd suits (and who it may not)

LendingCrowd sets four eligibility rules. You must be:

1. a limited company or LLP
2. based in England, Scotland or Wales
3. trading for at least two years
4. turning over at least £100,000 a year

Within those rules, it suits established businesses that want a substantial unsecured business loan without the wait that can come with a bank, and that can support the repayments from proven profits.

It is not an option for sole traders, partnerships, businesses in Northern Ireland, companies trading for under two years, or anyone wanting less than £75,000. Smaller borrowers will find more choice with lenders that start at lower amounts.

It is also worth thinking about timing. Because LendingCrowd wants two years of filed accounts, a business that has just had a strong year may want to file its latest accounts before applying, so the lender sees the most up to date picture of profits and growth.

04What LendingCrowd looks at

LendingCrowd asks applicants to have the following ready:

• information about your business, how long it has been trading and its sector
• two years of filed accounts
• three months of business bank statements
• details of any existing borrowing
• what the loan is for

As with most lenders at this size, expect a close look at profitability, cash flow cover for the new repayments, existing debt and the credit history of the business and its directors. Directors will need to give a personal guarantee, so read our guide to personal guarantees before you sign.

05Pros and cons of LendingCrowd business loans

Pros

• Larger loan sizes than many online lenders, up to £500,000
• Unsecured borrowing up to £350,000
• Terms up to five years with early repayment and overpayments allowed
• Online application with fast decisions, and same day funding possible once approved

Cons

• £75,000 minimum rules out smaller requirements
• Needs two years' trading and two years of filed accounts
• Limited companies and LLPs only, and not available in Northern Ireland
• Personal guarantee required, plus extra security above £350,000

06Applying through a broker vs going direct

LendingCrowd's online application is straightforward. A broker earns their keep at this loan size because the differences between lenders can be significant: term length, security, guarantee requirements and total repayable all vary. Comparing before you apply also avoids multiple searches on your credit file.

We search the market across our panel of 300+ lenders, including LendingCrowd, banks and other alternative lenders, and present your accounts and plans to the ones most likely to approve. It is free to enquire; any broker fee is disclosed separately before you proceed. You can use our instant quotes tool to compare quickly, or check eligibility on LendingCrowd's website.

07Alternatives to LendingCrowd

• ThinCats: often a better fit for larger, more complex loans to established mid sized companies.
• HSBC: worth comparing if you have strong accounts and want a longer bank loan term.
• Funding Circle: another well known term lender for established businesses. See our Funding Circle guide.