How it works

1. Choose an entrepreneur

A big or small investment? Choose an amount that suits you best: investing with Lendahand starts at €50. For each project the term of the loan is indicated, as well as how much interest you will receive on an annual basis and through which local partner the loan is made. Once you have chosen your entrepreneur, you select the amount you wish to invest and pay via iDeal or creditcard. There are no costs associated with providing a loan. You will then receive an email confirming the payment.

As soon as there are enough lenders to complete the loan, the money is wired to the local partner on the first day of the following month. Your interest starts on this date as well. As soon as the project you have selected has been fully funded you will receive an overview of your loan and the repayments you can expect, including interest.

2. Invest

With whom are you financially involved? With investing via a local partner, this financial institution is the borrower or counterpart. If you decide to invest directly in a company, this company is the borrower or counterpart. With direct investments, all useful information can be found on the borrower's projectpage and information on investing via a local partner can be found on the local partner page. For both type investeringen we have selected these parties very carefully based on criteria including social and financial criteria.

As soon as a project is fully funded on our website, local partners will provide the loan to the entrepreneur or pre-fund it. Simply because entrepreneurs need the money on a short term. Local partners cover the risk of currency exchange rates and defaults of loans. Funders therefore do not so much run risk on the individual loans but rather on the local partners. These professional organisations decide on whether an entrepreneur is qualified for a loan. At lokale partners you can find an overview of all parties that contracted with. If you are providing more than one loan it is always advised to spread this investment among different local partners and countries.

3. Create impact

With any business, access to capital is a prerequisite for further growth and development. For instance, to purchase raw materials, machines or solar panels. Getting a loan is often impossible for small and medium sized enterprises in the countries Lendahand operates in. Or simply too expensive..

Therefore, you can provide these entrepreneurs with a loan through our platform. That way they get affordable credit making it possible for their businesses to grow. This leads to the creation of jobs and an increase in revenue, and ultimately the poorest are able to benefit. You can make a big difference. With your loan people are able to improve their own living conditions and the conditions of their environment.

4. Get repaid

The borrower pays the loan back to you in equal parts every six months. If the loan has a maturity of one year, you will receive a similar amount twice, plus interest. The interest is paid over the outstanding amount.

If you want to, you can choose to re-lend your money and in turn help more entrepreneurs grow and receive more interest. But you can also opt to have it transferred to your bank account. There are no costs associated with the repayments or re-lending.

Note: We recommend that you only invest a responsible amount of your capital in crowdfunding (The dutch financial regulatory body AFM advices to invest a maximum of 10 per cent of your investable assets and not to make any investments with borrowed money).