LendingCrowd targets new investors with '˜joining bonus'

Alternative finance provider LendingCrowd is aiming to attract more investors to the peer-to-peer (P2P) market with the promise of a 'joining bonus'.

LendingCrowd is led by co-founder and chief executive Stuart Lunn. Picture: Stewart Attwood

The Edinburgh-based firm, launched in 2014 by chief executive Stuart Lunn and chairman Bill Dobbie, said those who register with the crowdfunding platform by the end of next month and invest £5,000 will receive a 2.5 per cent top-up in their accounts.

LendingCrowd, which connects investors with small and medium-sized companies typically seeking loans of between £5,000 and £250,000, said it has achieved a return of 8.1 per cent over the past 12 months.

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Lunn, a former City analyst, said: “The platform has achieved a great rate of return over the last year, with numbers that compare very favourably to other P2P lenders in the UK and internationally.

“Our investor base is telling us that as well as being happy taking on risk to achieve a rate of return that beats most other investments, there is a real satisfaction level involved in the process of supporting the growth of some of our most exciting SMEs.”

Since its launch, LendingCrowd has helped small firms tap into loans totalling more than £7 million and has more than 2,000 investors on its books. Diet Chef, the Edinburgh-based diet food home delivery specialist, last year used the platform to secure £1.5m in debt finance – said to be one of the biggest ever P2P business deals.