The process to place business loans

Applying for alternative finance on Tailwind Crowd is a quick and smooth process. The companies that have the best chances of approval for a loan have the following characteristics:

  • 3 years in business
  • Loan will be used for working capital, production or fixed assets
  • Profitable company

Companies that do not have one or more of these characteristics can also be considered, but will be placed under higher scrutiny and must provide substantiated reasoning (and proof) why they will be able to repay the loan to the investors.

There are 3 simple steps to funding a loan with Tailwind Crowd:

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1 Register on the Tailwind Crowd platform

By clicking on the button below to apply for a loan on Tailwind Crowd, a member of our team will contact you to discuss  business loan application.

REGISTER HERE 

During this process the borrower will be asked to provide basic information about company, strategy, need of the loan. Companies that do not meet the requirements mentioned above can only be considered in the case of exceptionally well financials or forecasts.

2 Provide information and gain approval

Once the loan proposition has passed the initial check a member of the Tailwind Crowd team will ask to send over company information and financials. Tailwind Crowd will create an initial risk assessment and present the proposition to the investors in order to gauge interest in the project. Besides Tailwind a third party (Graydon) will also provide an independent risk assessment. Borrower will receive documentation explaining in detail the information required. The requested information includes (but is not limited to) the following topics:

  • Investment need

A Small description of the activity of the company and stage of the company (including accomplishments & successes). Explain details about the investment: How the money is going to be used: for expansion investment; to cover inventory, to cover working capital.

  • Company

A brief description of the company: business model & differentiators (Teaser or commercial presentation-pitch deck). Products / Services offered, management team background, structure of the company: legal structure and owners, detail of annual sales..

  • Market

Facts about the market the company operates in as well as key differentiators your company has compared to (potential) competition. A target Industry and a marketing or communication plan should also be included if applicable.

  • Financials

This section should include the latest financials (P&L and Balance Sheet) of the past 2 to 3 years as well as cash flow and forecasts. Tailwind Crowd will take care of analyses relating to these financials.

  • Challenges & Risks

This section should describe the capital structure (existing debt, equity), collaterals and guarantees in place (when applicable), supplier / partnership risk and the plan to deal with the challenges and risks.

  • Timeline and Milestones

This section should contain a tangible spending plan. What are the areas the money is going to be used for and explain expected sales, costs and return.

3 Placement of the business loan proposition

Once the Tailwind Crowd team has reviewed the application and given green light borrower can start to create campaign page. The campaign page will contain the information borrower provide and should show to potential investors the transparency of the use of funds and repayable capability of the loan. Therefore it is important to introduce the  entrepreneur as well as the  company. The information on the campaign page will consist of similar information provided in step 2:

  • What the Money Is Going To Be Used For
  • Company Description
  • Market
  • Financials
  • Challenges
  • Timeline and Milestones
  • Contact
  • Project FAQs
  • Updates

Once investors transfer funds to project account, automatic contracts will be generated between the borrower and the investor. These contracts specify the amount of the loan paid for by the investor, the responsibilities of both parties and other legal information. Once the project is completed borrower will receive the funds directly to the bank account provided.

After the campaign

After the campaign is completed there are certain important actions to keep in mind as a borrower:

  • Keep to the timeline
  • Achieve milestones
  • Repay investors in a timely manner
  • Keep communicating with investors, share updates
  • Tailwind Crowd will handle all repayments to the investors

The repayments are handled by Tailwind Crowd. Borrower will only have to issue one payment each time, Tailwind Crowd will distribute the payment proportionally to all investors relative to the amount they have invested. A visualisation of the repayments can be found below.

 

 

 

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Requirements for companies (Project Owner)

Click here to download the information

Other useful information

About the loan:

What are the general characteristics of the loan?

Loans range from €5.000 to €250.000. Higher amounts are also possible, provided the company in question has ample reasoning that it will be able to repay the loan in future terms. The interest rate ranges from 6% to 10% and the runtime will be between 6 months and 4 years. Interest payments happen monthly, repayments of the loan are flexible per case.

Who determines the Loan details?

The loan details will be partially determined by Tailwind. Based on the financial strength of the company, Tailwind will determine an interest percentage. This percentage can then be deviated from within limits to allow for a slightly higher or lower interest according to the borrower situation..The repayment interval can be chosen by the borrower to be monthly, quarterly, every half year, or on a yearly basis. Interest will always be paid on a monthly basis. A Grace period can be given upon specific request, allowing you to delay the first repayment of the loan when cash flows are only expected to come in at a later time. The chosen loan specifics will always be verified and approved by Tailwind first, before the loan is placed.

About the loan campaign:

Who can launch a campaign?

If you want to place a loan, you must have a registered company. The company and business case must comply with our rules and should not be fraudulent, discriminative or immoral.

Can I have global investors?

Investors in lending projects will have to be Dutch residents with a Dutch bank account. International investors will be allow in case of professional investment institutions.

 How do I start to plan my campaign?

Once you are member of Tailwind Crowd by registering your account, you will have access to “creating your campaign step by step”. This is part of a toolkit with useful tools for you to efficiently create your campaign. If you have additional questions, you can always contact the support team of Tailwind Crowd that will be able to provide you with professional support.

What is the length of a campaign?

A campaign is typically runs for one month. A longer campaign does not necessary mean that the investors will invest more. The shorter the campaign, the more positive stress to make it work out and the lower the chance you will lose momentum during the campaign.

What amount should I target?

Tailwind believes that the investors need to know that you are asking for the minimum investment (or are co-investing) to fund your specific need.. Remember that if you do not reach the project goal you will not get any funding at all. The minimum investment per investor for lending projects is €150. This can give you an idea of how many investors on average you will need.

What happens if a target is not reached?

Tailwind applies an “all or nothing” model. This means the funding for the project will be cancelled and the funds returned if the predetermined goal is not met. For the investors, this means that the money committed to a campaign will be reimbursed back to the e-wallet, and will be available to invest in another project or to pay out.

 Where is the money during a project campaign?

Tailwind Crowd partnered with a third party payment service provider: Mangopay. This party holds the funds during the campaign and ensures the money is kept safe in escrow accounts. This means that the money cannot be touched in unforeseen events or bankruptcies of any of the involved parties. The funds will be safe until either the campaign succeeds and the borrower receives the money, or the project does not reach its funding goal and the money will be returned to the investors.

About your account:

How can I change the mail associated to my account?

You can easily do it in your profile account and settings under “My Account”.

How can I log in if I forgot my password?

There is a “forgot your password” link at the login page of Tailwind Crowd. A link will be sent to your mail account so that you can reset your password.

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