LUNES. P2P Crowdfunding: Crowd2Fund launches a new property loan product

Crowd2Fund has announced the launch of a new property loan product, secured against either commercial or residential property, Crowdfund Insider reports.

The company stated that the new vehicle qualifies for inclusion within the platform’s IFISA. According to the London-based firm, the new loan vehicle is targeted at businesses which own property, or directors who are willing to offer their property as security.

In particular, loans are between £100,000 and £1 million and they will typically hold a term of three to five years. Crowd2Fund estimates these loans will carry an APR between 6%-8% before fees and bad debts. For investors, the only fees are the Repayment Fee, set at 1% of the value of repayments, which is collected from each repayment.

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Chris Hancock, CEO at Crowd2Fund. (Source: AltFi)

Crowd2Fund CEO, Chris Hancock, said:

The launch of our property loan gives investors access to an asset class which has performed steadily over time and is easy to understand. These asset-backed loans are likely to be popular with P2P crowdfunding investors new to the market due to the perception of them being less risky than standard loans, which do not have security taken out on them.

Find out more on Crowdfund Insider.

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