TFGcrowd is a new crowdinvesting platform that revolutionizes how companies raise capital, and who can become an investor. Founded in the UK in 2019, TFGcrowd has streamlined the crowdinvesting space, introducing a structure and methodology that has been severely lacking. Its mission is to make crowdfunding simple, transparent and as safe as possible for both investors and their businesses.
To achieve this, TLGcrowd has a simple to use platform which enables investors to raise capital for a business that they want to realize its vision in the hope of making a return from their investment. They have also standardized the return rates for the different types of investors and thus removed the volatility that most investors fear with crowdinvesting.
Furthermore, TLGcrowd has significantly reduced the barriers to access for low capital investors who are not considered sophisticated enough to invest in the mainstream securities.
All these factors have combined to create a crowd-investing platform that is far ahead of its time and one whose actual relevance to the economy is still yet to materialize fully.
How Does Crowdinvesting Work?
TFGcrowd summarizes crowdinvesting with the following equation: crowd + investing = capital.
The TFGcrowd model leverages the entrepreneur’s networks of friends, family, colleagues and any other individuals interested in investing in the business to create a ‘crowd’ of investors.
TFGcrowd has simplified crowdfunding by introducing a structure to the investment. They have four types of investments and three investment plans that the investors can choose from. This has eliminated the ambiguity of deal structure in crowdinvesting and the volatility of returns that plagues the industry due to the ordinarily high risk associated with crowdfunding.
These tools come together to complete a simple four-step investment cycle that is more efficient than the approach taken by most institutional lenders and investors in small businesses and startups on the market.
Types of investments available at TFGcrowd
1. Business Finance
With a Business Finance investment, investors can finance a company with a medium to long-term loan with a fixed interest rate. The business makes periodic interest payments, and the company is expected to repay the entire principal of the loan at a specified date in the future.
2. Share Finance
This is a long term investment option that allows the investors to own a piece of equity in the business they are financing. Just like any other equity finance instrument, Share Finance investors make a profit when the business makes a profit. The returns in this type of investment come from either receiving a regular dividend from the company or from selling your equity at a premium.
3. Property Finance
This is a medium to long term investment option where investors give the business a loan specifically intended to help the company acquire, renovate, expand or develop a piece of property. Like business finance above, Property Finance investors make a return from the business’s interest payments.
4. Invoice Finance
Invoice Finance is a short term credit facility that allows investors to issue loans to the company backed by the company’s issued and outstanding invoices. This option is favored by businesses with significant orders but no short term liquidate to service the order. The investors in this option receive periodic interest from the borrowing business until the business repays the principal in full.
Investment Plans offered by TFGcrowd
TFGcrowd really went above and beyond to eliminate all barriers for the investors. It offers three comprehensive investment plans that cater to investors with different levels of investible capital, experience, and risk comfort. Below are the three plans, with the corresponding interest rates and periods.
|PLAN||INTEREST RATE (pa)||PLAN DURATION||INTEREST PERIOD||MINIMUM INVESTMENT|
|Long Term Planning||26%||3 years||Weekly|
|Investment Planning||24%||2 years||Monthly||€500|
|Beginner Investment||14%||1 year||Monthly||€100|
With these three plans, everyone can find an investment option that suits their unique circumstances. Furthermore, investors have no fees for opening up accounts, making deposits, investing, or even withdrawing their returns. This is as affordable as it ever gets for investors.
TFGcrowd’s numbers speak for themselves. As of today, TFGcrowd has over ten thousand registered investors and over ten million euros invested. The average interest rate on the credit facilities is 22.6% per year, well above the industry average.
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