What we do. Why we do it.

Our Mission

Our mission is to transform the lending market, as you know it, to make short-term loans more affordable and short-term investing more rewarding. In simple words, we want to make your money work hard, even harder while you relax. With Crowdvestor, you can now do just that.

We’re not a bank. Instead, we connect individual borrowers to individual investors through our online crowdlending marketplace, Crowdvestor. Loans offered through Crowdvestor are made possible by crowd-investors, who invest in exchange for bi-weekly or monthly returns.

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Definition

Short-term loans are designed to help meet short term financing needs. They can be a flexible option to better manage cash flow, deal with unexpected events, or help take advantage of a great deal. These types of business loans have set repayment terms, fixed interest rates, and a principal value.

Quick Facts

Loan Amount

$1 – 1,000

Loan Term

2 – 4 weeks

Re-Payment Frequency

Bi-Weekly, or Monthly

Interest Rate

8% – 13%

Time to Funds

1 – 2 days

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Requirements

Before you close your loan, we will need you to provide the following documents:

  • A copy of a valid, government-issued ID (e.g. driver’s license or passport)
  • Social Security card
  • Proof of residence (e.g. a driver’s license with your current address, a utility bill, or a signed lease)
  • Proof of income (e.g. pay stubs or tax returns)
  • Bank statement
  • Employment history

We may ask for additional items based upon a unique situation.

Who can participate?

US. Citizens and Permanent Residents Only.

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How investing with crowdlending works?

Here’s how to get started right away:

1.    Open an account

Opening an account is quick and easy. Go here

2.    Choose a membership

Your membership is your investment level. It is advised to start with the lowest membership level and to move up as you gain confidence. The membership fee is refundable at anytime and is not transferable.

3.    Fund the account

Link a bank account/Credit/Debit card/Paypal account and transfer as little as $1 to your CrowdPress account if you’re a crowdvestor. Investment earnings are deposited back into the same account.

Open a crowdlending account

How does CrowdPress Crowdlending work?

CrowdPress is an online, short-term loan marketplace, where investors back creditworthy and not so creditworthy borrowers in exchange for interest income.

So, here’s how it works:

  • Customers (crowdraisers) interested in a loan open a campaign and submit proofs (cited above)
  • CrowdPress performs due diligence on the borrower.
  • The lender evaluates whether they are ready to lend or not.
  • The lender signals and informs us of the decision to proceed or not.
  • CrowdPress authorizes/declines the transfer of funds.

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How does CrowdPress make money?

CrowdPress collects an arbitrage fee between borrowers and investors. The fee is collected from investors when they receive payments so that our revenue is directly tied to their cash flow.

How often do I get payments and when do I get all of my money back?

Payments of principal and interest on each loan are due from borrowers biweekly or monthly. The cash received by CrowdPress from these monthly payments is disbursed to investors and, once disbursed, is available for investors to reinvest or withdraw at any time. The final borrower payment of principal and interest is due to arrive on the date of maturity.

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How is this taxed?

Interest and other payments received in your CrowdPress account are generally taxable as regular income. In addition, the cost basis corresponding to a loan that charged-off is generally classified as a capital loss and reportable to the IRS. CrowdPress does not provide tax advice and recommends that you consult your financial or tax adviser if you have any questions or need additional information.

Is my money insured?

CrowdPress is not a bank and does not take and hold deposits. All cash balances reflected in your Crowdvestor account (e.g., funds not invested in CrowdPress) are held at Citizens Bank, National Association, an FDIC member banking institution, in a pooled bank account titled in our name “in trust for” investors. The account is FDIC-insured on a “pass through” basis to the individual investors, subject to applicable limits. This means that your CrowdPress account cash balance is covered by FDIC insurance, up to the limits established by the FDIC.

CrowdPress investments are not guaranteed or insured and investors may have negative returns. Borrowers make payments on their loans to CrowdPress and CrowdPress passes those payments on to investors net of fees.

  • If borrowers miss a loan payment, you will not receive a monthly payment on the corresponding investment.
  • CrowdPress has taken steps and will continue to take steps to protect investors and borrowers in the event that CrowdPress were to go out of business or if our services were disrupted, including entering into a backup and successor servicing agreement with a third party organization.

What happens when a borrower misses a payment?

Delinquencies are a natural component of investing in Crowdlending, and you should expect some borrowers to miss a loan payment.

When borrowers miss a loan payment, CrowdPress makes reasonable efforts to collect outstanding payments and bring the loan back to “current” status. The collections’ process in general is highly regulated and our collections’ teams take action to collect payments from delinquent borrowers in accordance with federal, state, and municipal laws related to collections activities.

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Why do some borrowers default on their loans?

Loan applications are evaluated and approved based on stringent credit criteria and review processes. However, it is impossible to predict whether particular borrowers will repay their loans.

Borrowers may miss payments and default on their loans for a variety of reasons. For example, borrowers may not make payments if they become unemployed, if they incur unexpected expenses, or if they file for bankruptcy. When borrowers miss a payment, CrowdPress makes reasonable efforts to collect outstanding payments. In certain circumstances, our collections team may work with borrowers to structure a new payment plan to help bring a delinquent loan back to “current” status. Even with our collection efforts, it is inevitable that some borrowers will default on their loans.

What happens when a borrower defaults?

It is unavoidable that some borrowers will stop making payments on their loans altogether, regardless of any additional collections efforts. When borrowers miss several payments and there is no longer a reasonable expectation of further payments, a loan becomes “charged off”. A charge off typically occurs when a loan is 150 days past due. When a loan is charged off, the remaining principal balance of the corresponding principal will be deducted from the investor’s account balance. We may sell charged off loans to a third party that attempts to collect the outstanding payments. In the event that funds are recovered by CrowdPress on a previously charged off loan, investors will receive a pro-rata share of the recovery amount, less any collections fees. In general, recoveries on previously charged off loans are infrequent.

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Benefits of short-term loan investing

Great for short term expansion projects

Improve your credit with fixed rates

Flexible options for a variety of business purposes

Drawbacks of short-term loan investing

Some loans may require collateral

You may need to provide personal and business tax returns

You will need to provide P&L statements and balance sheets

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How will I receive my loan?

You may choose to receive your loan in one of the following ways:

  • By direct deposit ‐ Get your funds deposited directly into your checking or savings account.
  • By check or money order

As an investor, how do I withdraw money?

You may withdraw available cash from your account at any time. All fund’s withdrawals are handled by a real human, no automatic programming is involved. Some communication including a phone call may need to be established. To move funds back to your bank account, click on the “Withdraw Funds” link in the “Transfer” section of your account. And email will be sent to the administrator and a withdrawal process will be initiated. Bank transfer initiated by 3pm EST M-F is typically posted to your bank account at the end of 2 full business days.

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