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FAQs

FAQs for lenders

What are the differences between Bonds and P2P Loans?

Interest paid on Bonds have to be paid net of a 20% withholding tax, however a borrower or issuer that has issued bonds or loan notes via an electronic platform does not have to deduct tax from interest payments made to lenders, so Crowdstacker investors are paid interest payments gross

Interest paid on P2P loans that are held in your P2P account are paid gross.

What is meant by the condition: 'I apply to subscribe to an IFISA for the years 2018/19 and each subsequent year until further notice'?

This condition allows us to keep your ISA open for subsequent years until you wish to close it. This simply means that we don't have to ask permission each year to keep your ISA open. You are not required to make further deposits or investments unless you wish to, and your future ISA allowances are not affected.

I am finding the website difficult to use and/or information difficult to understand?

At Crowdstacker we want to ensure that you get the service that is right for you. We are at hand to help you understand any of the information on the website and we have many methods such as paper applications and printed brochures that may be easier and more suited to how you digest information.

Please feel free to contact us on 020 7118 7570.

Difference between P2P account and ISA?

The P2P account is our standard account. Investments held in your P2P account are eligible to be included in your Personal Saving Allowance, allowing you to earn up to £1,000 of interest tax free.

Our ISA is like the other categories of ISA in the respect that the funds and investments you hold within in your ISA will qualify for tax-free interest. You will be able to accumulate your interest tax-free within your ISA as you would be able to in a stocks & shares ISA and a cash ISA.

Any funds withdrawn will lose their ISA status.

How do I sell my investment on the secondary market?

To sell your investment, log into your account and then go to ‘My account’ and ‘My investments’. You will see your peer to peer investments in either your peer to peer account and/or your ISA account. You will have the option to sell next to each active investment.

How does the Secondary market work?

The secondary market is a match bargaining system. We publish your investment for sale on our market and we approach interested members who have requested that they are notified when investments are available for sale. 

Crowdstacker cannot guarantee if and how quickly an investment can be sold. We have however been able to sell all investments that have been published to our secondary market.

Please note: you will only be able to sell your entire investment and you currently can only set the investment to be sold at the investment amount or the full capital you invested. 

Can I fund my ISA and make an investment application at the same time?

You can fund your ISA at the same time as making an investment. The investment will commence and start to earn interest from the commencement date (which can be found on our Investments page). Once you have logged in you would need to go to the investments tab at the top of the screen and choose the peer to peer investment you would like to hold in your ISA. You click ‘invest now’ and on the first screen on section 1.d you can select to hold this investment in your ISA.

On the review screen, you will be given the option to either make a bank transfer or debit card payment.

How do I use my ISA funds to make an investment?

You can use your ISA balance to make an investment by choosing the peer to peer investment you would like to hold in your ISA. You click invest now and on the first screen on section 1.d you select the account where you would like to hold that investment. 
On the review screen, you will be given the option to ‘use your ISA balance’. If you do not have a sufficient balance to fund your investment, you will be given the option to make a bank transfer or debit card payment for the remaining amount. Please note that you will need to ensure any additional payments do not take you over your annual ISA limit.

What happens to my investment if I die?

In the event a lender passes away, the borrower will pay the interest and the capital to Crowdstacker to hold on behalf of the lender, until such a time as the executor of the will of the deceased instructs us to release the funds.

What is a Flexible ISA?

Flexible ISAs allow you to, within the tax year, withdraw money and re-subscribe that money without impacting your ISA allowance. In order to keep the ISA a zero cost ISA, we do not allow this functionality.

What are AML checks?

Crowdstacker are required to verify your identity to prevent Money Laundering. In almost all cases verification can be done electronically. In certain circumstances, we will require a proof of address, proof of identity and bank statement to verify your identity, address and your bank account. You can securely upload scans of these documents at www.crowdstacker.com/account/private-uploads

If I open a new IFISA, can I put my existing P2P investments into it?

We have been in discussions with HMRC since the launch of the Innovative Finance ISA to work out a method of transferring your Peer to Peer investment to your Innovative Finance ISA. Although it is allowed, the solution is not easy for an investor. 

We would require you to fund your Innovative Finance ISA with an amount totaling the Investment Amount of the Peer to Peer investment you want to transfer. 
For more information, please contact us at 020 7118 7570.

Do you provide statements?

You can view your annual statements (and recent transactions) by going online to ‘My Account’ and ‘My Profile' and clicking on ’My statements'. Recent transactions are also accessible from your "My Investments" page.

What fees does Crowdstacker charge investors?

At Crowdstacker we do not charge fees to investors wherever possible. There are no fees to open a P2P Lending Account or an Innovative Finance ISA Account and we do not charge any fees for investing in our Peer to Peer loans, Bonds or Loan Notesinvestments, so every penny you invest earns interest. Here is a breakdown of our fees:

Innovative Finance ISA fees:

  1. Innovative Finance ISA opening fee - £0
  2. Innovative Finance ISA transfer in fee (to transfer into your IFISA from any existing cash ISAs or Stocks and Shares ISAs) - £0. Please note that your existing provider may charge a fee to transfer to us.
  3. Innovative Finance ISA annual fee - £0

P2P Lending Account fees:

  1. P2P Lending Account opening fee - £0
  2. P2P Lending Account annual fee - £0

Investment fees:

  1. Investment fee (to invest in a Peer to Peer Loan, Bond or Loan Note investment) - £0
  2. Investment transfer fee (to sell your investment to another party through the platform) - £0
Do my Crowdstacker investments qualify for the Personal Savings Allowance (PSA)?

From 6th April 2016, you can earn up to £1,000 of interest, dependent on your tax status, across Crowdstacker investments and other savings as part of your Personal Savings Allowance.

Can I transfer my investment to someone else?

Yes, Crowdstacker operates a match bargaining system which allows lenders to transfer their investments to other lenders on the platform, or into their SIPP or ISA accounts.

If you would like to transfer your investment, please email us at [email protected] or give us a call on 0207 118 7570 and let us know. 

There is no fee to transfer your investment. 

Is Crowdstacker responsible for investment repayments?

While the facilitation of interest payments and investment repayments is managed through the Crowdstacker platform, it is not responsible for providing the funds to make these payments. The borrower is solely responsible for providing the funds to make such payments.

What happens if the Borrower raises more than its target?

If a loan campaign raises more than its target, the Borrower may decide to increase its borrowing threshold, or return the money to some lenders. Crowdstacker imposes a maximum loan target in order to prevent the borrower from borrowing more than it can afford.

What happens if the borrower doesn't reach its minimum target amount?

If the Borrower does not reach the minimum target amount, all the funds being held by Crowdstacker will be returned to the Lenders.

Can a borrower repay the investment before the end of the investment term?

The Borrower may repay an investment early but it has to repay the entire investment amount to all lenders. Where this happens, the Borrower may be subject to paying an Early Repayment Charge to the Lenders.

What is a Custodian?

The Custodian is an independent party that holds client money prior to the loan commencing in a segregated client account, covered by the Financial Services Compensation Scheme, and organises the payment of interest. Following FCA encouragement, Crowdstacker has obtained FCA permission to hold client money, and consequently will be taking over the custodian’s role. This change will come into effect on the 25th August 2017.

Where is my money held?

While the investment is still open for offers, your funds will be held in your Crowdstacker client account. Once the investment commences the funds will be transferred to a nominated account as outlined in the relevant Information Brochure.

Your funds will be covered by the FSCS while Crowdstacker holds your money, processes funds, and services your client account. Once your funds are leant to the borrower, the FSCS protection ends and the investment security package takes effect.

Once I have transferred my money how do I know it is safe before the investment commences?

While Crowdstacker holds your money, your funds are protected, up to £50,000, by the Financial Services Compensation Scheme (FSCS), until the investment commences. Once your funds are leant to the borrower, your money is transferred to a nominated account, as outlined in the relevant Information Brochure. The FSCS protection ends and the investment security package takes effect.

Can I lend funds through a SIPP?

Whilst Crowdstacker do not currently offer the setup of new SIPP’s, you are able to hold a Crowdstacker investment in your SIPP account.

In the first instance, we will need to establish if your current SIPP provider allows investments in P2P loans. If you would like us to check this for you, please email us with the name of your current provider and we will get in contact with them.

Once we have established that your provider can accept P2P loans and if you wish to go ahead with an application to hold your investment in your SIPP; we will send you a paper application form to complete. All applications for SIPP accounts require a ‘wet signature’ so you will not be able to complete this online.

For more information, please email us at [email protected] or give us a call on 020  7118 7570.

How often can I invest?

You can invest via Bonds, Loan Notes or P2P loans as often as you like. For amounts over £100,000 you must make a BACs payment or send a cheque.

We advise that you do not lend more than you can afford to lose.

 

Is there a minimum/maximum I can invest?

Each Borrower will set a minimum investment amount that they will accept. This is set out in the Key Commercial Terms of each loan and can be found in the Information Brochure of each investment opportunity. 

If you are re-investing your interest the minimum amount you can re-invest is £100, although you can top up your balance to meet this amount during the investment process if you do not have enough interest.

Who/what am I lending to?

Crowdstacker users are lending to growing, established UK businesses that have a compelling business proposition.  

The companies listed on the Crowdstacker platform each provide a summary of their business, which can be found in the relevant Information Brochure.

Can I access my capital early if required?

When you lend money to a business either through your Crowdstacker Innovative Finance ISA or P2P lending account, you commit to lending that money for the term of in investment – usually anything between 12 months and 3 years. During this time it is not possible to withdraw early the original investment amount. 

However, we do offer a match bargaining system where investors looking to sell their investments can be matched with those looking to buy. Although this process is not guaranteed, we have been able to sell all investments listed on our market.

How will my investment be repaid?

At the end of the investment term, the Borrower will repay the investment amount to the Lender’s client account at Crowdstacker. It will then be repaid to the Lender’s personal bank account.

What happens to my money after I transfer the investment amount?

We will hold your funds on your behalf in a segregated client account at Lloyds Bank plc. until the investment commencement date (found in the Key Commercial Terms in the Information Brochure). When the investment commences, the funds will be transferred to a nominated account as outlined in the relevant Information Brochure.

Your funds will be covered by the FSCS while Crowdstacker holds your money, processes funds, and services your client account. Once your funds are leant to the borrower, the FSCS protection ends and the investment security package takes effect.

What payment methods do you accept?

There are three payment methods:

  1. Debit card payments for amounts up to £50,000
  2. BACs payment for any amount
  3. By cheque (using a paper application only)
How do I loan money to businesses via Bonds, Loan Notes or P2P loans?

Once you are registered with Crowdstacker select the ‘Investments’ icon. After selecting an investment, click 'Invest now' and follow the application process.

Note: You will need your debit card and bank details in hand and to answer a few questions to ensure the opportunity is suitable for you.

You can also use a paper application that can be found by clicking ‘Invest now’ and then the 'Prefer to make a paper application?' circle at the top of the page.

Who can lend via Crowdstacker?

The following can lend via Crowdstacker:

  1. a person 18 years old or over
  2. a company
  3. a trust or charitable organisation 
Does Crowdstacker accept vulnerable customers?

As part of our service, we cater for vulnerable customers who want to lend through Crowdstacker. If you consider yourself to be a vulnerable customer and would like to discuss your application further with a customer service representative, please contact 020 7118 7570.

For more information on vulnerable customers, please use the following link which will guide you to the FCA Occasional Paper No 8 on Consumer Vulnerability: https://www.fca.org.uk/publications/occasional-papers/occasional-paper-no-8-consumer-vulnerability