Lending Crowd

Lending Crowd business-loan eligibility

The published business criteria require a good credit history, more than 18 months of trading, at least $80,000 in annual revenue and full ownership of the business. If ownership is shared, ask Lending Crowd how that requirement applies before submitting an application.

Under the loan terms, individual borrowers and guarantors must be at least 18 and either New Zealand residents or holders of a valid New Zealand work permit. Company borrowers must be incorporated in New Zealand and meet the contractual solvency requirements.

Expect to provide bank statements, a New Zealand driver licence or international passport, and business financial records where requested. Lending Crowd assesses credit history, financial circumstances and any security offered. Meeting the published thresholds does not establish affordability or approval.

For secured borrowing, the borrower FAQ identifies registered vehicles and residential or commercial property owned by an applicant, including a vehicle being purchased. Confirm any valuation, existing-finance and personal-guarantor requirements in the offer.

Which businesses may find it suitable?

This loan is most relevant to established businesses funding a defined purchase or project with enough recurring cash flow to support monthly repayments. Fixed interest provides budgeting certainty, while fee-free extra repayments may suit businesses that periodically generate surplus cash.

Start-ups, businesses below the revenue threshold and applicants with poor credit do not match the published criteria. A business covering persistent operating losses should examine the underlying cash shortfall before adding another repayment.

Compare other business finance options using the same net funding amount and repayment period. An overdraft or invoice-finance facility may better match recurring cash-flow gaps; vehicle-focused borrowing can also be compared with car finance options, checking that commercial use is accepted.

How Lending Crowd business borrowing works

Lending Crowd remains licensed for peer-to-peer lending, but its current general FAQ says its parent company, Finance Direct Limited, provides all investment funding during systems testing. Older descriptions of individual investors choosing each loan do not fully describe the present arrangement.

Quote, assessment and acceptance

1. Obtain an indicative quote: The anonymous online quote does not require your name or email and, according to Lending Crowd, does not affect your credit rating. It is not an approved offer.
2. Submit the application: Supply business and financial information, bank statements, identification and any requested supporting records. A full application involves checks beyond the anonymous quote.
3. Review the offer: Check the approved rate, cash advanced, financed fees, repayment schedule, security and any guarantor obligations before signing electronically.
4. Receive funding and repay: Complete the direct-debit authority and settlement arrangements. Funds may go to your nominated account or directly to a seller where goods are being purchased.

The privacy policy permits identity and credit checks and relevant information sharing. The anonymous-quote feature should not be confused with an anonymous loan application.

How long does funding take?

Timing depends on assessment, supporting documents and settlement requirements. The borrower FAQ still refers to investor funding and smaller loans sometimes funding within an hour; this is not a reliable end-to-end business-loan turnaround commitment. Obtain a confirmed settlement date before committing to a purchase or payment deadline.

Questions to ask before accepting an offer

• How much cash will the business receive, and what balance will we owe after all financed fees and optional products?
• What are the monthly repayment and total repayment for each available term?
• Which assets secure the debt, what insurance is required, and are there registration or discharge costs?
• Must an owner sign personally as borrower or guarantor, and what liability would that create?
• Which repayment-waiver document applies, and what are its exact price, exclusions, limits and refund rules?
• When will funds be available, and what happens if revenue falls or a repayment is missed?

Lending Crowd business-loan advantages and limitations

Advantages

• Fixed interest throughout the term supports predictable repayment planning.
• Extra repayments can shorten the loan without an early-repayment fee.
• Unsecured borrowing is available up to $50,000, subject to approval.
• An anonymous indicative quote allows an initial pricing check before a full application.

Limitations

• Trading-history, revenue and ownership criteria restrict access.
• Platform fees are financed, so their cost includes interest as well as the initial charge.
• Larger loans require security, exposing pledged assets to enforcement if the debt is not repaid.
• Repayment-waiver disclosures need clarification before optional cover can be evaluated confidently.

Lending Crowd business-loan interest, fees and total cost

All amounts below are in New Zealand dollars. The published business rate schedule, effective 18 September 2025, gives the following fixed annual interest ranges:

The website’s general “from 8.95%” headline includes personal lending; it is not the minimum business rate. Your offer depends on the credit grade, security and term. Interest accrues daily, and the advertised annual rate does not include fees.

Establishment and security costs

• $2,000–$20,000: $450 business platform fee.
• $20,050–$50,000: $750 business platform fee.
• $50,050–$200,000: $1,500 business platform fee.
• Property security: $850 registration fee per property; legal discharge costs may also apply.
• Vehicle security: The schedule says security fees generally do not apply to vehicles or other personal property.

Platform and property-registration fees are added to the loan. Crossing a fee threshold can therefore increase the cost by more than the extra cash requested: moving from $20,000 to $20,050 increases the platform fee by $300.

Illustration: $20,000 unsecured over three years

Original calculation, not a Lending Crowd quote: Borrowing $20,000 with a financed $450 platform fee creates an opening balance of $20,450. At 16.30% p.a. over 36 months, a standard monthly amortisation calculation gives repayments of approximately $722 a month and approximately $25,992 in total. That is about $5,992 above the cash borrowed, including the platform fee and interest.

This assumes the lowest published three-year unsecured business rate, on-time payments, no extra repayments and no optional waiver or other charges. Lending Crowd calculates interest daily, so actual payment dates, rounding and the final repayment can change the result.

Required insurance and optional Repayment Waiver

The security provisions require pledged goods to be insured for their full insurable value against specified risks, including loss, fire, accident, theft and damage. Include the premium in your affordability assessment and confirm any separate property-insurance requirements.

Repayment Waiver is optional. The fee schedule lists Gold at 4.50% for a single applicant or 5.95% for joint-borrower/guarantor arrangements, and Platinum at 5.85% or 7.80%, respectively, with a $100 minimum. Obtain the exact financed charge and rounding calculation in writing.

Gold addresses death and terminal illness; Platinum adds specified disability, redundancy and self-employed bankruptcy events. The waiver document includes benefit caps, waiting periods and exclusions. Arrears can exclude a claim, and bankruptcy protection excludes borrowers who have been in the same type of business for less than two years. A business can therefore meet the loan’s trading-history threshold without meeting that protection condition.

Disclosure discrepancy: The fee page describes an unused-premium refund less $50, while the downloadable waiver and loan attachments use different rebate formulas and rounding rules. Confirm the applicable document and refund calculation before accepting the optional charge.

Late payment and recovery costs

For newer agreements, the fee schedule states default interest of 20% p.a. on overdue amounts, rather than an additional 20 percentage points. Once a loan enters collection, listed charges include $20 weekly arrears management, a $100 repossession fee and invoiced recovery costs. Serious default can make the outstanding balance immediately payable and lead to enforcement against security. Confirm the precise default provisions in your agreement.

Is a Lending Crowd business loan worth considering?

Lending Crowd is worth comparing for an established business that values fixed repayments and expects to repay extra when cash flow allows. Its strongest feature is early-repayment flexibility; its main limitations are financed upfront fees and the security requirement above $50,000.

The decisive comparison is the total cost of receiving the same amount of usable cash over the same period. For secured offers, weigh any interest saving against insurance, registration costs and the assets at risk.

Lending Crowd business-loan FAQs

How much can I borrow without putting business or personal assets up as security?

Lending Crowd publishes unsecured business loans of $2,000–$50,000 and secured loans of $5,050–$200,000, excluding financed fees. Its secured options require acceptable registered vehicles and/or property. When comparing offers, check both the assets pledged and any personal guarantor obligations: an unsecured business loan should not be assumed to remove an owner’s personal liability. For secured borrowing, include required asset insurance and any property-registration costs in the comparison.

Which Lending Crowd rate should I use when comparing business-loan offers?

Use the business rate for the same term and security arrangement, rather than the website’s general 8.95% headline, which relates to personal lending. Published business rates start at 11.50% p.a. secured over three years and 15.95% unsecured over two years. For a three-year unsecured comparison, the starting rate is 16.30%. These are minimum advertised rates, not personalised offers or fee-inclusive APRs. Compare the quoted total repayment for the same amount of usable cash.

Can the platform fee outweigh a lower advertised interest rate?

It can, particularly for smaller loans or borrowing repaid quickly. The business platform fee is $450 on $2,000–$20,000, $750 on $20,050–$50,000 and $1,500 on $50,050–$200,000. On a $2,000 loan, $450 equals 22.5% of the cash borrowed before interest; that percentage is not an APR. The fee is added to the balance and attracts interest. Borrowing $20,050 instead of $20,000 also raises the platform fee by $300, so check whether a small increase crosses a costly threshold.

Does Lending Crowd suit a recently established or jointly owned business?

Its published criteria require more than 18 months in business, at least $80,000 annual revenue, good credit history and full business ownership. A new start-up falls outside those criteria. If ownership is shared, confirm how Lending Crowd interprets “full ownership” before applying. Trading-history requirements also differ between the loan and optional protection: the repayment-waiver document excludes bankruptcy claims where the borrower has been in the same type of business for less than two years.

Can offering security compensate for a poor business credit history?

Security affects Lending Crowd’s assessment and pricing, but its business page still requires good credit history. There is no published assurance that pledging a vehicle or property overrides that requirement. If comparing a secured offer with another provider’s unsecured offer, examine the total repayment, guarantor obligations and assets exposed to recovery together. A lower interest rate alone does not establish that the secured offer is preferable.

Can I compare Lending Crowd’s pricing without making a full credit application?

Yes. Lending Crowd says its anonymous indicative quote does not require your name or email and does not affect your credit rating. This makes it useful for an initial comparison of estimated rates and fees. A full application involves identity, financial and credit checks, and the eventual offer may differ. Before submitting several full applications, ask each provider whether its quotation process records a credit enquiry; do not assume every lender’s “quote” works the same way.

How useful is fee-free early repayment if I expect to clear the loan quickly?

Lending Crowd permits extra payments and full settlement without an early-repayment fee. Its borrower FAQ says extra payments shorten the term rather than reduce the scheduled monthly instalment. For borrowing you expect to clear after a few months, compare the original establishment costs and a settlement estimate for that date, rather than relying on the full-term repayment figure. Request a written settlement amount that includes accrued interest and any applicable security-discharge costs. If you add Repayment Waiver, obtain its refund rules separately because the published documents differ.

Will the repayment schedule suit a business with seasonal or irregular income?

The published schedule is monthly direct debit, with the first payment one month after payout. You can request a different monthly payment date, but the loan terms say a date change may affect repayment amounts or the term. This matters when comparing providers offering weekly, fortnightly or monthly collections: assess whether cash will be available on each collection date. Extra payments during a strong trading month do not automatically reduce the next required monthly instalment.

What support and recourse are available if repayments or service become a problem?

Contact Lending Crowd on 0800 308 002 or support@lendingcrowd.co.nz before a missed repayment where possible, and ask what assistance is available under your business agreement. The borrower FAQ says it may help with unforeseen repayment difficulties, but a revised arrangement is not automatic. Late-payment information may be reported to credit agencies, and collection can add costs.

Its complaints procedure states acknowledgement within 1–2 working days and a response within 20 working days. Unresolved complaints can be referred to Financial Services Complaints Limited on 0800 347 257 or complaints@fscl.org.nz. The service is free, subject to its jurisdiction.