How Lendahand Works
Money you invest in crowdfunding projects on Lendahand makes a positive impact on the lives of entrepreneurs worldwide. Discover how it works.Entrepreneurs need working capital
Entrepreneurs in emerging markets worldwide need €5.6 trillion in capital. Unfortunately, due to various circumstances, they often cannot rely on local banks. With your investment, you provide reliable financing, enabling these entrepreneurs to grow their businesses and secure their future.
Invest in projects of your choice
You can support entrepreneurs in emerging markets with as little as €10 through crowdfunding projects on Lendahand. You have the option to invest in different forms of financing: business loans for local companies or microfinancing and growth financing through local financial institutions.
Invest in entrepreneurs and increase financial equality
Thanks to reliable financing, opportunities arise for local entrepreneurs. As they put the funds to work, you receive repayments every six months with an interest rate of up to 8% per year.
Reinvest and grow your impact
You can easily reinvest your repaid funds into crowdfunding projects worldwide. This can be done manually or automatically through Auto-Invest. Invite friends using your referral code, and receive €25 in investment credit added to your Lendahand wallet.
Which problem does Lendahand want to solve?
Many entrepreneurs in emerging markets have limited access to financial services and local banks. Too many people work in the informal sector, lack a bank account, and can only turn to family or loan sharks for funds. This lack of financing prevents them from growing their businesses and improving their standard of living.
Financial exclusion contributes to broader global inequality, a gap Lendahand aims to bridge. Through Lendahand, you empower individuals to improve their living conditions, contributing to a fairer and more inclusive world.
Crowdfunding for entrepreneurs in emerging markets
With crowdfunding through Lendahand, you directly contribute to the growth of businesses in emerging markets and provide opportunities for entrepreneurs and their families.
Join 16,000 other crowdfunders in investing in job creation and financial equality worldwide. At the same time, your investment offers you an attractive return.
Choosing your projects: the criteria
At Lendahand, you decide where your money goes, allowing you to achieve the social and financial return you envision. Select projects based on country and social impact, while also considering interest rates, maturity, currency, and the borrower’s credit score. Whether you choose a EUR or USD project of 12 or 36 months, you'll receive equal repayments with interest every six months, unless otherwise specified. Whatever project you choose, by investing in people and the businesses behind them, you bring positive change to the world.
The types of projects
With each project, it is clearly indicated whether it's a direct investment in a company or through a local financial institution. Directly investing in a company carries more risks since there is no intermediary to absorb potential losses. However, all projects meet our strict social and financial criteria, with credit scores ranging from A+ to B. Do you want to invest in the change that matters most to you? Select projects based on their social impact, such as supporting female entrepreneurs or smallholder farmers.
Choosing your project: manually or automatically
Investing through Lendahand starts at just €10 and is completely free of charge. You can manually invest in crowdfunding projects or choose to use Auto-Invest, which automatically builds a diverse portfolio for you. Auto-Invest reinvests your repayments into new projects that match your preferences. Simply set your project preferences, and Auto-Invest takes care of the rest. You can also combine manual and automatic investing for even more flexibility!
Receiving repayments
Your investments are repaid in equal instalments. Every six months, unless otherwise stated, you will receive a part of your investment plus interest. The repayments are based on the amount invested and the project’s interest rate. Once you have received your repayment, you can choose to have the money deposited back into your bank account at no charge or to reinvest it in another project. Reinvesting can be done manually or automatically with Auto-Invest, depending on your preference.
Create your free account; safe and secure
Start by easily creating your free account with Lendahand. In just a few steps, you'll verify your bank account and identity, as required by law and regulations. Lendahand holds an ECSP license and is regulated by the AFM. Additionally, we ask you to complete a short, non-binding investor test. This process is quick and ensures that the crowd can invest safely and responsibly.
Making your first investment
Choose a project that suits you, set the amount, and add it to your basket. You can select multiple projects before checking out. Once the crowd has fully funded the total amount, the money will be transferred to the financial institution or company on the first day of the following month. From that point on, you begin accruing interest. In your dashboard, you can find all transaction details, an overview of your investments, and the impact you are making.