Clearwell Capital, which provides finance to SME property developers has raised £5 million via a bond featured on the Crowdstacker investment platform.

The finance house, which helps developers ‘build everyday homes for everyday people’ has provided over £12 million to small and medium sized builders, funding 45 different multi-dwelling developments across the UK so far.

It launched an initial raise for £3 million, with Crowdstacker in 2018, the success of which led it to extend its overall goal to £6.5 million in December of the same year.

Plugging the property finance gap

“We’ve already hit £5 million which is great news for the developers we work with,” explains Ed Marley Shaw, CEO of Clearwell Capital.  “Despite Government initiatives to help meet housing targets, developers are still struggling to access all the finance they need to deliver enough houses.  The role we play in plugging this gap is increasingly important especially during the economic uncertainty caused by Brexit.”

Clearwell Capital reports a three-fold increase in enquiries from property developers over the last 12 months.  It aims to help developers bridge the funding gap between acquiring land, being granted planning permission and commencing the build, and the final sale of the completed properties.

“Clearwell Bonds has been a very popular investment on our platform since we launched it last year.  Although the minimum investment is £100, the average investment is much higher than this, and people have been using their ISA allowance to enjoy the 7.25% p.a. returns offered, tax-free,” comments Karteek Patel, CEO of Crowdstacker.

Risk warning

Your capital is at risk if you lend to businesses. Lending through Crowdstacker is not covered by the Financial Services Compensation Scheme. Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future.  For more information please see our full risk warning https://crowdstacker.com/risk-warning.