Why would I borrow from Credit Crowd and not a bank?
It’s all about speed of credit decision and funds advance, flexibility of terms, and a collaborative journey to exit. As responsible lenders, we do undertake a thorough due diligence but we don’t blindly follow a tick-all-the-boxes approach. Discretion and common sense guide all that we do.
How long does a loan application take to approve and payout?
We’ll provide a credit decision in principle and indicative pricing and terms within a day. Time to payout of funds is usually between one and three weeks. This allows for completion of our due diligence, including professional property valuation, and preparation and signature of agreements.
What are the key credit assessment criteria?
As asset based lenders, we are focussed on the character of the borrower, the purpose of the loan (is it legitimate and commercial), the nature and value of the security property (can it be readily sold at fair value if required), and the quality of the loan exit (is there evidence of several feasible options).
What are the costs involved in a Credit Crowd loan?
We price our loans accurately for the credit risks as we assess them. Depending on the loan type and term, the loan to value ratio, and the quality of the exit plan, our all-in effective cost to borrower ranges from 8% to 15% per annum.
What are the payment options?
All our loans are interest only, either serviced monthly or, to improve cash flow, rolled up and capitalised to the loan principal and paid at settlement. Loan capital can be drawn down in tranches and repaid in lump sums on terms agreed at inception.
What are the risks involved?
The key risks of course are failure to a) service a loan on the basis agreed or b) settle the loan at end of term. In these situations, the borrower will incur costs and charges and ultimately carries the risk of losing their security property. It is essential to have a number of feasible exit strategies in place.
What is market place lending?
It is the modern version of the oldest form of financial intermediation – willing investors lending money directly to credit worthy borrowers. The ‘market place’ where this happens is on the internet and is curated by Credit Crowd, a licensed, professional operator.
What role does Credit Crowd play?
We originate borrower loan applications, assess their credit worthiness, determine a fair price for the risks and then introduce approved loans to investors through our marketplace. Investors review specific loan information before electing to invest or not online. Credit Crowd then manages all aspects of the loan until repayment.
Can I withdraw my funds at any time?
No. Once your investment funds are committed to a loan they are locked in until the borrower repays. You have no right to withdraw unless, at our discretion, a substitute investor can be found, a process which is not guaranteed. If you need certain liquidity, this investment type may not be right for you.
Is there a risk of not getting some or all of my capital back?
Yes. As with all forms of lending, there is some risk that the loan will not be repaid. However, the risk to your investment funds is mitigated by the first mortgage right we have to sell the property taken as security to cover the risk of default.
How is Credit Crowd structured for this business and how is it regulated?
Is all business done online, or can I speak to someone when I need to?
While the efficiency of the market place for borrowers and investors is a result of the technology deployed, there will always be a Credit Crowd team member available to help one-on-one directly. Just call us on 1300 544 166.
Is my personal information private and secure?
Credit Crowd respects your right to privacy and will only process your personal information in accordance with the Privacy Act 1988 and any other applicable laws and regulations. We will only collect personal information which is reasonably necessary for, or directly related to, our functions or activities.
The security of your information is very important to us. We regularly review developments in security and encryption technologies. Unfortunately, no data transmission over the internet can be guaranteed as totally secure.
We take all reasonable steps to protect the information in our systems from misuse, interference, loss, and any unauthorised access, modification or disclosure.
If we no longer require your information, and we are legally permitted to, we will take all reasonable steps to destroy or de-identify the information. We take reasonable steps to preserve the security of cookie and personal information in accordance with this policy. If your browser is suitably configured, it will advise you whether the information you are sending us will be secure (encrypted) or not secure (unencrypted).