Crowdfunding finances projects or businesses by raising contributions from a large number of people, usually via the internet on a platform.
In return, investors can get shares in a company, or earn interest.
Our Crowdfunding platform
In March 2016 we launched our crowdfunding platform, Downing Crowd, offering investors the chance to lend directly to UK businesses via bonds secured on their assets. We intend to launch bonds across a range of businesses, including solar farms, hydro plants and pubs.
To reflect the increased risk, the target returns typically range from 4-7% p.a. fixed interest over 1-2 year terms. The bonds are transferable, but not listed – so investors should assume they will hold the bond for the full term, but we do allow transfers between members.
We always put our investors first; to help manage risk, we conduct in-depth due diligence on the underlying businesses, and our monitoring fee is only payable after our investors’ cash and interest has been safely returned.
We act as security trustee and take a legal charge over assets, which means that in the unlikely event that a borrower defaults on the loan, we have the right to step in to recover our investors’ money.
Join the Downing Crowd
New bond offers are intended to come out regularly, and will likely stay open for 2-6 weeks only.
If you would like to be notified on new offers, please visit the Downing Crowd website at www.downingcrowd.co.uk and register your interest.
The latest bonds will be loans to established UK businesses with Downing having security over either a solar farm, an anaerobic digestion plant, an onshore wind farm or a selection of country pubs. Downing manages risk for bondholders by lending only to companies with existing operational assets and established revenue streams.
Downing has been investing in real businesses for over twenty years, traditionally through tax efficient vehicles such as VCTs or EIS. Many of these businesses have matured and the rules around tax have changed so that some are no longer eligible for that tax incentive. The companies issuing these bonds are already known to Downing and each investment is secured against the operational assets of the business, with a loan to value of under 45%.
Find out more about crowdfunding in our Overview