FinTech: UK Development Lender CrowdProperty Notches £100M Of Loans

October 29, 2020 | FinTech, News, Real Estate, Venture Capital
https://dailyalts.com/wp-content/uploads/2020/10/Crowdproperty-Completed-Project.jpg

CrowdProperty is a peer-to-peer lender to professional SME developers.

CrowdProperty, a leading crowdfunder/lender to the U.K. SME property sector, has lent over £100 million to development professionals. The funding had a beneficial impact on the UK economy. It catalyzed an expenditure of over £ 80 million on construction-related labor, materials, and services. Notably, all of the funded projects are fully repaid, with platform investors earning, on average, 8% per annum. (CROWDFUND INSIDER)

Covid-19

CrowdProperty remained active throughout the pandemic, and in fact, set funding records during lockdowns.

It financed 60 projects with each taking less than one minute to finalize on the platform.

“As one of the only active development lenders throughout the COVID-19 pandemic, enabled by diverse sources of capital and a perfect lending track record since 2014, the business has been profitable since 2019 and profitable each and every month since lockdown began,” said Mike Bristow, CrowdProperty CEO and co-founder, in an email.

CrowdProperty: Traditional lending models are broken

The fintech aims to make a difference in the property development business because traditional bank lending is in crisis, while investors are receiving lower rates of interest.

CrowdProperty solves these problems by providing quick and easy finance to property professionals, at the same time allowing investors the opportunity to earn inflation-beating interest.

In the process, CrowdProperty helps to satisfy the increasing demand for high-quality residential housing. The U.K. needs an estimated 300,000 new homes each year.

Founded in 2014, CrowdProperty is FCA authorized and regulated since November 2017.

It has funded 1,106 homes and helped raise money from 11,850 investors since its launch.

It only finances projects that are ready to proceed and have clear plans to exit.

Financial performance

“CrowdProperty has seen strong growth in annual lending of 1,371% through the last 3 years and revenue growth of 1,019% through the last 3 financial years,” says Bristow.

“Whilst profitable and robust, the business continues to invest in team, systems, and processes to build deeper efficiency and effectiveness to support a much larger lending business vision, for which there is already huge demand,” he adds.

He revealed that the company was working very hard on several major company developments which could be announced in the next few months.

Related Story:  Across The Pond, Property Finance Fintechs Report Record Business

Image Credit: A CrowdProperty completed development

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