FAQs for lenders - Crowdstacker

Can I invest without adding funds to my account?

Our pledge system allows investors to make a commitment to a particular loan, without having to fund their account right away. You are essentially saving your place in the loan.

When a commencement date is confirmed, we will contact you and ask you to fund your account and then place the order for you.

To make a pledge, please log into your Crowdstacker account and follow the instructions below:

1. go to 'My Crowdstacker'
2. select 'My Loan Pledge'
3. select 'Your investment choice' using the dropdown

How often will I receive interest?

Our PDL investments pay either interest at the end of the term or monthly. If you choose to invest in a PDL that pays monthly interest, you will receive monthly payments to your Crowdstacker account or bank account and capital is repaid at the end of the loan term. If you select an investment that pays interest at the end of the term, interest and capital will be paid at the end of the loan term as stipulated in the Key Commercial Terms (KCTs) for the specific loan.

What happens to my balance if my loan does not commence?

When you invest, the funds are ‘committed’ to a loan. Your funds do not leave your account until the loan starts or commences and is held in our client account which is protected under the Financial Services Compensation Scheme (FSCS).

If a loan does not go ahead for any reason, it is shown as repaid in your investment stack online, however it will not show on your statements as the funds have never left your account. In these cases, your available balance is simply updated ready for you to invest elsewhere.

When will my PDL Loan be paid back?

When you invest, you commit to the term as specified in the information brochure. However, due to the nature of PDL loans, you may get paid back slightly earlier or slightly later than the term specified in your Key Commercial Terms. This is because, the Borrower pays you back after the senior loan is repaid, and every time they sell a property. This is standard practice for property development loans.

When will my PDL Loan commence?

Due to the nature of PDL loans, close dates and commencement dates can change, meaning they can sometimes commence slightly earlier or later than anticipated. This is often due to the completion of legalities by the senior lender taking longer than anticipated and is no reflection on the Borrowing business. From a loan perspective, you will earn interest from the date of commencement and as specified in your Key Commercial Terms, so no interest will be lost. Any delays in commencement does not change the structure of the planned project as a whole.

How do I make a PDL Loan application?

If you decide to invest, you will need to complete the online application in the normal way. Be sure to press ‘submit investment order’ at the end of the process to ensure that your order has been placed and you will be given an order reference on screen, plus an email from us confirming the order is placed.

If your application is accepted, you will receive a further email of completion followed by your Key Commercial Terms on the relevant commencement date. If we are unable to accept your investment offer, we will contact you and let you know.

How do PDL loans work?

PDL loans have a strict target raise, which means the close date stated on the website is subject to change should the maximum investment be reached before this date. All applications will be processed on a first come, first served basis however, this does not guarantee that your order will be accepted if the Borrower has met the target raise.

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.

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.

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

To make a peer to peer investment go to 'Investments’ in the menu bar at the top of this page, choose the business that you wish to lend to via either bonds, loan notes or peer to peer loans and click 'invest now'. On the next screen you will be asked to select "Which account would you like to hold this investment in?' You can select 'My IFISA Account'. You will then be able to continue with your order application. Please note that you will not be able to invest until you have an available balance on your account to cover the amount of your investment.