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

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/12/adventure-2179256_640.jpg
Alternative Investments/ESG: TD Asset Management Launches Three New Equity ETFS With ESG Focus

TD Asset Management announced Tuesday the launch of three new ESG Equity ETFs to cater to investors looking for exposure to equity market indexes and companies with an ESG edge….

https://dailyalts.com/wp-content/uploads/2020/12/bitcoin-2643188_640.jpg
Digital Assets: “The Real Story Is Adoption,” Says Novogratz On Bitcoin
December 2, 2020     Digital Assets, News

Speaking Tuesday on CNBC’s Squawk Box, Mike Novogratz, CEO of Galaxy Digital, said large investors appeared to be switching their gold holdings to bitcoin, judging from the outflows seen recently…

https://dailyalts.com/wp-content/uploads/2020/12/https___www.voiscooters.com_wp-content_uploads_2020_03_DSC_1840-1-2-e1584701129318.jpg
Venture Capital: Voi, Swedish Maker Of E-Scooters, Closes On $160M Funding
December 2, 2020     News, Venture Capital

Voi Technology’s haul of $160 million is a mix of debt and equity in a Series C round led by The Raine Group, with participation by existing investors such as…

https://dailyalts.com/wp-content/uploads/2020/12/night-4694750_640.jpg
FinTech: Top Chinese Regulatory Watchdog Airs Fintech Concerns
December 2, 2020     FinTech, News, Regulations

In an article in a newly released book from the central government explaining the country’s economic priorities and development plan for 2035, Guo warned of a disturbance in global financial…