Crowd2Fund
Debt and equity crowdfunding for established SMEs. Focus on companies with revenue and trading history.
General Information
Crowd2Fund publishes FCA outcomes statements, with the firm confirmed as FCA authorised (FRN 623683). The platform's April 2024 outcomes statement references an actual default rate of 10.8% using its "Total Amount Lent" methodology, and expected defaults for April 2025 were forecast at 11–13% per that document.
The platform focuses on business and SME lending, providing investors with access to loans to UK businesses. The published default rates and methodology provide transparency, though investors should note that the headline figure depends significantly on how defaults are measured and reported.
How does it work?
Crowd2Fund facilitates business and SME lending, where investors fund loans and returns depend on borrower repayments net of defaults and recoveries. The platform's own materials emphasise that methodology matters — how the default rate is calculated affects the headline figure significantly.
What do they offer?
Crowd2Fund offers business lending with ISA marketing, promoting its 2025/2026 IFISA product on its website. Third-party commentary from January 2026 notes limited data availability for fully rating lending rates after losses, which is a useful transparency and analysis constraint to be aware of.
Returns are generated from interest payments on business loans. The SME lending focus means performance is tied to the health of small and medium-sized businesses, which can be cyclical and sensitive to economic conditions.
Who is it for?
Crowd2Fund is suited to investors comfortable with SME default cyclicality and who want published outcomes statements that quantify defaults and forecasts. The transparency around default methodology provides useful context for risk assessment.
However, the reported default rates indicate that meaningful losses do occur, and investors should factor this into their expected net returns. SME lending carries inherent risks related to business viability and economic conditions.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice and should not be considered as such. In particular, it does not constitute personal advice — please consult a qualified financial adviser to address your particular personal requirements. Other is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisers and it is therefore not authorised to offer financial advice. This article is not intended as an offer, invitation or solicitation for the purchase or sale of any investment, nor is its issuance intended to give rise to any other legal relations whatsoever and must not be relied upon for the purposes of any investment decision. The information contained in this article is subject to updating, revision and amendment.
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