To begin the process of becoming a investor, you must first register to Huddle Capital.
You need to qualify to become an investor on the Huddle Capital platform, by meeting certain criteria. Most of the time this process happens in the background, however, occasionally, one of our team will be in touch if we need additional information
Even if you meet our criteria, you should be aware of the risks of lending to small and medium sized businesses. Consider this carefully before going ahead to invest. Read more about these risks by clicking here
At Huddle we are committed to bringing the right people and organisations together. To become part of the exclusive Huddle community you must simply pass our AML checks, to ensure you are eligible. Please get in touch if you’re concerned about your eligibility.
We pride ourselves on our comprehensive approach to ensuring all legalities are covered, it is at this stage in the process that we will need to carry out Anti-Money Laundering checks. You will also be required to accept our Terms and Conditions before being able to go ahead to investing
Congratulations on securing a membership to our Huddle community. You’ll now gain access to all our investment opportunities and become a valuable member of our community where you can unlock a variety of relevant and educational information surrounding the world Peer to business lending. You will also be invited to exclusive members only events, where you can learn more about the alternative form of investing and network with like-minded investors.
You can now begin investing, by transferring funds onto your Huddle Capital user account. You can do this through a direct money transfer from your bank account to your Huddle Capital user account – Fund you deposit with Huddle Capital, are held in a designated client bank account at Barclays bank. All bank deposits will be reconciled with the online user account balance.
Before you start investing, you may want to consider the risks of lending to small and medium sized businesses. See the risk warning here
Once your funds are cleared, you can then purchase loans on the platform. Loans are broken down into loan parts and you will purchase lots of loan parts making up the overall amount you wish to invest. For example; if the borrower wants to borrow £100,000 you may only decide you would like to invest £10,000. Each part of the loan could amount to £100 – therefore you would simply purchase 10 parts. We also offer an auto invest option, this would include the use of an algorithm that would automatically set up investments, and purchase loans that meet the investor’s chosen criteria. Once all loan parts have been purchased, the money is released to the borrower and the investment will commence.
Once a loan has started, the borrower will be charged interest and principle payments, these will then be released back to the investor. We will manage the debt and recover it if there is a bad debt. You need to bear in mind that if a borrower is unable to make interest and or principal payments, any outstanding capital is at risk. Your investment is not protected by the Financial Services Compensation scheme.