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FAQs about safety/risks

Does Crowdstacker Have a Contingency Fund?

Your funds are covered by the Financial Services Compensation Scheme (FSCS) while Crowdstacker holds your money, processes funds, and services your client account. Once your funds are lent to the borrower, the FSCS protection ends and the investment security package takes effect. Crowdstacker does not have a provision or contingency fund.

Wind-down Plans


What would happen if Crowdstacker closed to new business?

Upon a decision to wind down the business, Crowdstacker’s wind-down plan would take effect. Our contingency plans will allow the loan portfolio to operate as normal. All loans will continue under contractually agreed terms, and you would continue to receive interest payments until maturity, when your capital will be repaid. Lenders who have active loans are unlikely to be able to withdraw their investments until borrowers have repaid.

What would happen if Crowdstacker went into administration?

In the event that Crowdstacker Limited is unable to trade, the firm has agreed a living will agreement with Resolution Compliance Limited to ensure that the firm is wound down in an orderly manner for both its peer to peer lending, bond, loan notes and equity crowdfunding business. 

Resolution Compliance Limited is authorised and regulated by the Financial Conduct Authority under FRN: 574048.  Crowdstacker has a Resolution Manual in place to assist an administrator taking over the running of the business. The manual provides information how the firm conducts the business of management and administration of P2P agreements that it has facilitated, what the day-to-day operation of that business entails and what resources would be needed to continue that business if the firm ceased to carry it on.

If Resolution Compliance Limited is appointed to administer your investment(s), either Crowdstacker or Resolution Compliance Limited is entitled to charge you 1% of the outstanding balance of your investment(s) together will all costs and expenses arising from the administration of your loan and ancillary responsibilities. These costs incurred will help to ensure an orderly repayment of your outstanding investments.

Although measures have been taken to manage wind down, there is a risk P2P agreement may cease to be managed and administered before they mature.

For more information on our Wind-down policy please email customer services at

How are Borrowers selected?

We are different from other platforms. Our goal is to save you time by filtering through the many opportunities out there, leaving you with what we consider to be of the highest quality.

We achieve this through our carefully designed selection process. We carry out bespoke and independent due diligence on each potential company. We reject many along the way. We negotiate additional levels of protection for our investors and organise the documentation so that it is easy to understand the benefits and risks of each opportunity. Our due diligence includes three key steps. Only what we consider to be the best investment opportunities will make it to the third.

The three key steps are:

1. Pre-screening This initial assessment includes: Verification Confirming the identity of the potential company and its directors, including checking for County Court Judgements, directors that have been disqualified and other red flags, as well as Anti Money Laundering checks performed in line with Financial Action Task Force (FATF) guidelines. Automated credit analysis Using a credit-scoring model* to provide an initial assessment of credit worthiness. The model is used by the majority of credit insurers and claims to predict around 70% of the defaults in the next 12 months.

2. In-depth analysis Our due diligence process is performed by chartered accountants with experience of analysing companies of varying sizes. This includes: Financial health: An assessment of current and projected financial performance and position. Management and statutory accounts, cash flows, business plans, repayment strategy and existing debt are all considered. Management team: We meet senior management teams at their premises and assesses the quality of the team and its operations. Loan Structure and Conditions: A recommendation is made regarding the Loan structure, security to be provided and any associated conditions to protect investors.

3. Credit committee The credit committee is responsible for reviewing all reports and approving each new business proposal.

Once a loan is approved, we work with the company to produce informative documentation that outlines the key benefits and key risks for the loan.

We also co-ordinate over the payment of interest and the return of investors’ capital at the end of the loan. Crowdstacker also acts as Security Trustee.


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.

What kind of security does Crowdstacker take?

Extensive due diligence is undertaken on every business. We may take security in the form of a debenture over a company’s assets, or security over specific assets ring-fenced for the benefit of investors.

What happens if a borrower misses a payment?

If a Borrower is late with a payment, Crowdstacker will take steps to collect the funds owed. The procedures for this are outlined in the Lender or Investor T&Cs

Note: If the investment has the benefit of security, the Security Trustee may be instructed to enforce the security on behalf of all investors. The Security Trustee or an affiliate company of the Security Trustee will pay back to lenders in their proportionate share any funds successfully recovered, less its costs incurred during that recovery

How will Crowdstacker verify the identity of lenders?

During the lender application process, Crowdstacker are required to verify your identity to prevent Money Laundering. We ask you to provide basic details including your full name, address, and date of birth. In almost all cases verification can be done electronically. In certain circumstances, we may ask for further information, and may require a proof of address, proof of identity and bank statement to verify your identity details.

Is lending through Crowdstacker guaranteed by the Financial Services Compensation Scheme (FSCS)?

Your funds will be covered by the Financial Services Compensation Scheme (FSCS) while Crowdstacker holds your money, processes funds, and services your client account. Once your funds are lent to the borrower, the FSCS protection ends and the investment security package takes effect.