Study of the FundingKnight: What makes us different for investors
This week, a potential investor was kind enough to send us an email and ask what makes FundingKnight different? She is keen to spread her savings across a wide variety of items and wanted to learn what particular distinctions FundingKnight has set apart from other crowdlenders she uses.
We've sent a personal response with some responses, but if a potential investor asks a question, it probably means that there are more of you out there who would like to hear more about exactly what's special about investing with FundingKnight.
So, here comes a short analysis of the FundingKnight for lenders. Feel free to check out the points below for yourself and give us your thoughts – our door is always open to customer reviews, tips and positive feedback.
We lend to firms that are not individuals
We 're offering loans to companies rather than individuals.
What does it matter? Deciding whether to invest in companies or individuals is obviously a personal decision, but we agree that the public information available on businesses – such as budgets, cash flow analysis, etc. – combined with the internal and external credit tests that we run make it easier to determine if a business loan is likely to be repaid successfully.
We sell duty-free lending to investors
Investing in FundingKnight is free of charge for participants. There are no annual fees, account payments or secret payments or charges, but there can, of course, be a tax due on any return. Most P2P lenders charge investors fees.
What does it matter? It's better than that. Investors via us pay no fees, and the interest rate you are giving is the interest rate you are getting (pre-tax and default).
We 're making it easy to sell part of your investment in our loan exchange
FundingKnight lets you pick just how much of your portfolio you want to sell on a loan platform.
You are bidding a live auction to invest £ 1,000 in Apple Accounting Ltd. at 10% over the three-year loan term.
Your bid is good, the auction is over and you now have a $1,000 investment in Apple Accounting. You will receive a payment of 10% (prior to any tax and default) each month, including capital and interest.
A year later, you need access to some cash to fund some unexpected repairs.
You need £ 600, but you don't want to pay off your entire investment, because you'd like to continue earning 10 % interest on the remainder.
For FundingKnight, you 're only going to tell the program how much of your investment you want to sell, what price you want to bid and apply to bring it live on a loan exchange.
One of the current investors, Steve Lee, recently called this feature "a brilliant solution, the best one available on any of the platforms I've used."
You should invest everything in your account
You don't have to lend to the FundingKnight in 'multiples.' We will have a minimum deposit of £ 25, so after that, you can add whatever is left in your account to make sure that all of your cash works as well as it can for you.
For example, if you have GBP 22.50 left in your account, you can spend it all, rather than £25, and you have to add more money to unlock the remainder.
Finding lenders and build loans
While we're concentrating on investors today, there are also a few interesting points about how we look after companies that borrow from FundingKnight.
- We give an opportunity to take up payment holidays, which can be very beneficial for companies who need time to invest in loans to continue flowing via cash flow and income.
- We use forward-looking and historical information to assess applications and concentrate on whether the loan can be repaid out of cash flow.
- Investors would have access to the cash flow forecast for each loan, details that other P2P borrowers do not have.
Fortunately, that gives you some more info on why crowdlending with FundingKnight is a better way to lend money.
Please feel free to leave a comment with more questions or send us an email to [email protected]
FundingKnight main features and highlights
- Business Loans
- Property Bridging
- Green Energy
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