Review undertaken by Simple Crowdfunding In respect of P2P loans


On receipt of a full application a detailed assessment of the application is required.  Considerations Include (but are not limited to):   

Directors:
  • Character of directors - The background, experience & credibility 
  • Credit checks – company and individuals 
  • Communication and response
  • Social media checks 

Project:
  • Overall project review: Location, purpose of the loan, exit strategy, experience, finance stack (including fundraiser and other funding for the project), cashflow, project plan, current or development valuation as appropriate.
  • Understanding the plan for repayment and whether this is realistic.  What is the plan B?  
  • Establishing the right risk / return and suitable security / collateral to support the loan.

Company:
  • Name and current registered address
  • List of all directors obtaining KYC 
  • Details of beneficial owners
  • Certificate of incorporation and articles of association
  • Accounts, including management accounts if last accounting date more than 12 months ago

Our assessment is proportionate to the risk recognising that, while we are likely to have security for the debt, our primary concern is the repayment in full to the investors, including interest, over the loan term. 
   

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HOW MUCH CAN I INVEST? WHAT ARE THE FEES TO INVESTORS? AM I ABLE TO INVEST IF I LIVE OUTSIDE OF THE UK? INVESTMENT RISK - CAN I LOSE SOME OR ALL OF MY MONEY WHEN INVESTING? IF I NEED MY FUNDS, WILL I BE ABLE TO GET MY MONEY OUT WHENEVER I WANT? ARE LEVELS OF RETURNS GUARANTEED? WHAT IS CONSIDERED TO BE A SENSIBLE INVESTING STRATEGY? ARE MY INVESTMENTS PROTECTED BY THE FINANCIAL SERVICES COMPENSATION SCHEME (FSCS)? P2P INVESTMENT RISK - WHAT HAPPENS IF THERE IS A PROBLEM? P2P FUNDRAISERS - WHAT HAPPENS IF A P2P FUNDRAISER RUNS INTO DIFFICULTY? WHAT HAPPENS WHEN I INVEST INTO A P2P INVESTMENT? WHAT HAPPENS IF SIMPLE CROWDFUNDING CEASES TO OPERATE? TAX BENEFITS AND IFISA INVESTMENT RISK WHAT HAPPENS TO THE VALUE OF MY SHARES IF THE COMPANY ISSUES NEW SHARES (DILUTION)? WHEN DOES DILUTION OCCUR? WHAT IS SIMPLE CROWDFUNDING'S INVOLVEMENT AFTER THE FUNDRAISE? WHEN DOES MY INVESTMENT START? WHAT FACTORS DO YOU CONSIDER WHEN DECIDING WHETHER OR NOT TO LIST A P2P LOAN? REVIEW UNDERTAKEN BY SIMPLE CROWDFUNDING IN RESPECT OF P2P LOANS WHO SETS THE PRICE OF THE P2P LOAN? LATE PAYMENT OR DEFAULT OF A P2P LOAN SECONDARY MARKET FOR P2P CAN I INVEST THROUGH MY COMPANY? CAN I, MY COMPANY OR TRUST INVEST MORE THAN ONCE? WILL PEOPLE BE ABLE TO SEE IF I HAVE INVESTED? CAN I SHARE INFORMATION ABOUT THE PROJECT, RAISE OR INVESTMENT WITH OTHERS? WHO DO I TRANSFER FUNDS TO? CAN I CANCEL MY INVESTMENT? WHAT HAPPENS IF THE TARGET AMOUNT IS NOT REACHED? WHAT HAPPENS IF THINGS GO WRONG? WHAT ARE THE RISKS ASSOCIATED WITH INVESTING? TAX CONSIDERATIONS WHEN INVESTING DO I HAVE TO PAY TAX ON MY RETURNS? DOES SIMPLE CROWDFUNDING DEDUCT TAX ON BEHALF OF ITS INVESTORS? HOW DO I CALCULATE MY TAX LIABILITY? WHAT HAPPENS TO MY INVESTMENTS IF I DIE?