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.