What is GRID Finance?
GRID Finance is an online project financing platform where businesses and community organisations can access finance through the peer to peer lending model.
What is Peer to Peer (P2P) Lending?
P2P Lending is a method used to raise finance for a project or business by seeking small amounts from a large number people.
There are four general types of peer to peer financing: donation, rewards, debt and equity. Each of these types of P2P financing are defined by what the individual expects in return after contributing to the project. GRID Finance operates the debt model which means that individuals are lending money to a business which is repaid with interest to the individual on a monthly basis. GRID Finance manages these repayments from the business to the individual.
Why do people use GRID Finance's project financing platform instead of a bank?
GRID Finance gives businesses access to cheaper and faster credit than traditional banking channels. Individuals have the opportunity to lend directly to businesses and earn a return on their money in excess of the interest rates being paid by the banks.
Is GRID Finance regulated?
GRID Finance does not fall within the remit of the Central Bank of Ireland although it is anticipated that the peer to peer finance sector will be regulated in the coming years. GRID Finance voluntarily follows the UK regulatory framework as it is anticipated that the Irish framework will be similar.
How do I know my money is safe?
The security of your funds is our primary concern. We have voluntarily adopted the client asset rules where your funds are held by AIB in a segregated bank account. Client funds are never pooled with GRID Finance's funds and they will never be used to settle any of GRID Finance's obligations. KPMG have been appointed to review our client asset controls and procedures on an ongoing basis.
What is the difference between private borrowing and public borrowing?
Borrowing publicly means that your business and your project are made available for our lenders and the general public to see on the GRID platform. For many businesses this is a great way to publicise and build awareness of your business.
Borrowing privately on the GRID allows you to keep your financing efforts private whilst still benefiting from the loan management services required for debt finance. Only people that you invite to your project such as friends, family, business partners or peers can access and lend to your project.
Who backs GRID Finance?
GRID Finance is financed by a group of committed private investors including Kilcullen Kapital Partners and Enterprise Ireland.