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Frequently Asked Questions

Who can use Flender?

Flender is open to any business that wishes to secure funding where a set of audited accounts are available. Lenders can be resident anywhere in the world. Borrowers who create Flender campaigns need to hold residence in Ireland. Anyone that meets the affordability and credit check requirements is eligible to launch a campaign on Flender. In order to create a campaign, the borrower must meet the following requirements:

1. If you are a sole trader, you must be a permanent resident of Ireland.
2. If your business is a partnership, it must have a permanent place of business in Ireland and at least half of its partners must be permanent residents of Ireland.
3. If your business is a limited company, it must be registered with the Companies Registration Office (CRO) and have filed accounts with the CRO.
4. Your business must have been actively trading for at least the past two years.
5. Your business must meet minimum credit risk and fraud criteria.

Why borrow using Flender rather than a bank?

1. At Flender, we believe that traditional methods of financial borrowing are outdated, imbalanced, and impersonal. We felt there was an opportunity to create an alternative method of lending that gave borrowers more control over how they borrow and an opportunity to get more than money from the transaction: loyalty and increased trust.
2. Our goal was to develop a Peer-to-Peer lending network that would allow businesses to raise funds from lenders within their own social circle and customer base, and investors willing to lend to them. Our loans are funded by a community of thousands of investors, comprised of institutions and over 5,000 people, all looking to lend to Irish businesses like yours. Our approach means that borrowers can access fast and affordable finance, and lenders can safely lend to creditworthy businesses and people they know and trust.
3. Flender’s purpose is two-fold:
   1. Lenders can bid on which campaigns they would like to back while earning more interest than a standard savings account.
   2. Borrowers can raise funds while sharing their story with those whom they already have a connection. We provide a layer of security and structure to ensure both borrowers and lenders are protected.

What documents do Flender need from me?

1. ID & Address Confirmation
2. Trading accounts for the past 2 years
3. Bank Statements (last 6 months)
4. Tax Clearance Certificate

How safe is borrowing on Flender?

All borrowers go through affordability and credit checks before their campaign is eligible for participation. A successful campaign requires signed contracts by all parties before proceeding.

1. Flender loans and activities are subject to the laws in the country of origin of the relevant campaign.
2. At Flender, we are committed to keeping your information secure and in protecting your privacy. You can read more about this in the privacy policy section of our Customer agreement.

How do I get started?

Getting started on your funding journey is easy. Just click “Get a Flender loan” anywhere on the website. Once registered, you can begin creating your profile.

How much can I borrow and how long is the repayment period?

Businesses can borrow between €10,000 and €250,000 for terms of up to five years. The amount that you wish to borrow, the interest rate, and the repayment period can be chosen by you. All borrowers are subject to affordability and credit checks to ensure that they are financially able to meet the loan repayments.

Are there any costs associated with setting up a campaign?

No, it’s free, and there are no associated costs with setting up a campaign on Flender.

What fees does Flender charge?

Business borrowers pay a small fee based on a successfully funded application or campaign. Please contact us for more information if you are a business interested in raising funds through Flender at info@flender.ie.

How are Flender loans funded?

Our loans are funded by a community of thousands of investors, including institutions and over 5,000 people, all looking to lend to Irish businesses like yours. We still handle everything for you; as well as getting the finance you need, you’ll know you’ve got a huge community of investors behind you.

How can I make a repayment?

Your card will be charged monthly. Should there be any issue with the repayment on the billing date, we will try again in the next 2 days. If the repayment remains outstanding, you can transfer the funds manually to our Bank account using your name as a reference.

• BIC/SWIFT: LHVBEE22
• IBAN: EE297700771002676842

What is Digital Lending?

Digital Lending offers a fast and flexible alternative to traditional banks. It matches lenders with approved borrowers in a safe environment and creates legal contracts between those parties. Since Digital Lending companies operate online, they can run with lower overhead and provide services more efficiently than traditional financial institutions. As a result, lenders can earn higher returns, while borrowers can access funds much more quickly than they would through traditional banks.

Who can become a lender on Flender?

Almost anyone can become a lender on Flender. To become a lender, you need to meet the following criteria:

1. You must be over 18 and have a valid passport or driving license.
2. You must have a valid bank account available.
3. You must take responsibility for your own tax affairs and report to your country’s regulatory authorities as necessary.

How much can I lend and at what interest rate?

There is no cap on the total you can lend to businesses on Flender. You can lend from €50 to €250,000 on each loan request, although investors typically create a diverse portfolio to spread risk across a range of loans. Interest rates available through Flender can vary depending on the type of campaign and the rate the borrower is willing to pay.

How are returns calculated?

The percentage that we show as potential return is the annual interest rate that is charged on a decreasing balance loan. For example, if you lend a borrower €10,000 at a 10.30% interest rate over 36 months, the monthly repayments to you will be €324.08. So you will get back €11,666.96 in total (i.e., a return of €1,666.96, or 16.7% of the loaned amount). Dividing that 16.7% by three years gets to 5.7%, but that 5.7% is not the available rate of return since it’s not compounded. To achieve an annual rate of return of 10.3%, you'd simply reinvest the monthly repayments from this loan into other loans to benefit from compound interest.

Who can I lend to?

With Flender, you can lend to limited companies, sole traders, and partnerships seeking loan facilities. We carefully review all potential borrowers and only approve their applications if they have successfully completed affordability and credit checks. All business loans are secured with directors’ personal guarantees and a security deposit.

How does Flender assess the creditworthiness of borrowers?

The credit team at Flender evaluates each borrower in detail for affordability and creditworthiness, as with traditional lending institutions. We analyze credit information obtained from Credit Safe and Stubbs Gazette, along with a detailed cash flow and VAT return analysis. We carefully review all potential borrowers and only approve their applications if they have completed affordability and credit checks. All business loans are secured with directors’ personal guarantees.

How do I lend to businesses through Flender?

Register as an investor on Flender and choose the campaign(s) that you would like to lend to from the Flender Marketplace. You can then transfer your funds to those campaigns. You can also invest quickly and automatically in companies that meet your criteria using our AutoFlend feature.

What is AutoFlend and how does it work?

AutoFlend allows you to automatically bid on live campaigns in the Flender Marketplace. Registered users can see AutoFlend by logging into their accounts. AutoFlend is designed to help investors quickly lend to companies that meet certain criteria. Investors can set loan grades and terms themselves and then use AutoFlend to spread their funds across a range of business loans that meet these criteria. AutoFlend automatically places bids for you when a loan meeting your criteria appears on the Flender Marketplace without you having to check for new campaigns. You can opt in and opt out of AutoFlend whenever you wish.

What fees does Flender charge lenders?

The fee structure for our lending community is currently under review and we will communicate any changes in the very near future.

Is my money safe with Flender?

We understand that this is your money, not ours. The available cash that you have is held in a segregated Lenders funds account. Flender manages these accounts in line with best practice. The account does not form part of Flender’s assets. We ensure the safety of your money by putting in place structures and controls consistent with Client Monies regulations.

How risky is lending to businesses?

It is important to remember that with all lending there is an element of risk. Some borrowers may not be able to fully repay their loan. If this happens, the loan becomes known as a bad debt. All of our borrowers undergo a rigorous credit evaluation process before they post a loan request on Flender. This process includes checks on credit, affordability, and creditworthiness. We advise all lenders to spread their money across multiple campaigns to reduce their risk.

How does Flender prevent borrower fraud?

Flender carries out comprehensive identity and credit checks on company directors who wish to borrow through Flender to ensure that each borrower is who they say they are and do what they say they’ll do.

When do I start getting repayments?

The first repayment you get from a borrower will usually arrive within a month of you lending to them. You will see your funds in your Flender account, and you can withdraw them once a month or reinvest to earn compound interest.

Can I reinvest my funds as they come back from my borrowers?

Yes, any money you receive from borrower repayments is automatically added to your available cash fund, which you can use to lend to other borrowers and take advantage of the power of compound interest to maximize your returns. You can use AutoFlend to automatically reinvest money you receive from borrower repayments.

How can I withdraw money from Flender?

You can withdraw any money in your lender account that you have not currently lent out. For your first withdrawal, we require proof of identification before we can release your funds. Proof of Identity: Copy of Passport/Drivers License/EU Card. Proof of Address: Financial statement which must be dated within the last 6 months.

What happens if a repayment is late or missed?

Flender’s comprehensive affordability and creditworthiness checks have resulted in maintaining an extremely low default rate. We also have a debt recovery program with a third-party collections agency to manage defaults should they occur. Borrowers who do default will be pursued where possible and any money recovered will be forwarded to the lenders. The borrower will also have to meet the costs of recovery which is a condition of their loan.

What happens if a borrower declines to accept the offer of a loan?

If a borrower chooses not to accept the offer of a loan, we will return the amount to your account as soon as we process the transaction.

Is tax deducted from my returns on Flender?

Tax is not deducted from your lending returns on Flender. Therefore, you need to file a self-assessment tax return showing the interest you have received from your borrowers. Lending on Flender is generally considered an investment activity and qualifies as unearned income for taxation purposes.

Do I need to register with any regulators?

It is your responsibility to register or report to your country’s relevant authorities as necessary. Lenders should familiarize themselves with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 in Ireland, which requires some lenders to register with the regulator.

What happens to my investments if the Flender platform is not in a position to continue managing the loan book?

Flender has partnered with a market-leading loan book management firm to ensure the loan book continues to be managed efficiently in the unlikely event that the Flender platform can no longer service the loan book.

How many times in a year can I withdraw my investment returns from Flender?

With Flender, you can withdraw your investment returns once per calendar month to ensure you have regular access to your funds.

What is Flender's Loan Grade system?

Flender stringently reviews all credit applications and assigns a credit grade between A+ and V. The main criteria of the grading system encompasses affordability, liquidity, equity base, business age, directors' experience, and credit history. Flender’s Grade V product has a higher rate as there is a higher risk attached. These deals will be bespoke in nature (e.g., project finance) and may be exceptions to our standard credit criteria.