Crowd Funding is becoming a popular alternative to funding Management Buyouts as high street banks are still cautious lending in this sector.
Crowd Funding or Peer to Peer lending is an alternative way of providing loans on attractive terms from serious private investors who are more likely to understand your business.
They bid in an online auction to join a syndicate and lend to your company.
At the end of a successful auction the bids with the lowest interest rates are selected and you get an offer based on the average rate
As banks try to recover from the Credit Crunch, the chances are you are ulikely to get funding you require for a management buy out. You may find an unwillingness to lend, requests for increased security, higher rates of interest and increased fees.
How Crowd Funding works?
We work on your behalf to prepare an information memorandum covering a full overall view of the business, the buy out team and financial reports which will be made available to potential lenders. Our report helps Lenders to assess the risks involved and since the auction outcome depends upon how many bids are attracted, a well written report is likely to result in a lower interest rate.
We have a good reputation and attract a following of Lenders achieving a higher success rate.
Crowd Funding Loans for Management Buy Outs
- Secured loans up to £3m
- From a few months to 5 years or more
- Interest rates either fixed or linked to Base Rate
- Fixed monthly installments of interest and capital
- No penalties for early repayments with respect to most loans
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