INS & OUTS
What is Lendpool?
Lendpool is a platform that allows creative people, entrepreneurs and organizations to seek funding through peer-to-peer financing. At Lendpool we believe that true innovation and great talent is being lost because they do not have the necessary funds to execute their revolutionary ideas and Lendpool wants to give every project builder the best chance to bring it to the market. The funding industry is based on old models and we are reinventing it by giving the power to the people!
Is Lendpool a not-for-profit organisation?
How does the platform work?
Our platform is based on funding campaigns. Anyone who aspires to progress their working projects can create a campaign to seek funds to complete the end result and take it to the market. Once their campaign is launched they will be able to accept contributions from anyone who wants to support them. When a project reaches the target set for its campaign, the owner will be able to collect the funds and be able to finalise the project. The project owners will also pay back a royalty for every contribution received.
What kind of projects does Lendpool accept?
We are mainly a technology, retail and art financing platform within social and environmental realm so every campaign has to be subsequently related.
How do I create a campaign?
To create a campaign on Lendpool you must first become a member. Once loged in go the top of the page and click on the ‘Start a Campaign’ button. That will open a tab with the ‘Start A Campaign’ button, click on it and follow the step by step instructions to get funded!
We also suggest you read the campaign guidelines before you get started. That document has tons of valuable tips and information that will help you create the best funding campaign possible. Good luck!
What can’t I give as a reward?
For legal reasons Lendpool does not allow the following rewards or returns to be offered:
- Alcohol – no alcoholic drinks can be offered as rewards
- Sexually Explicit Material or Offers – no sexual services, conduct or sexual explicit products can be offered as rewards
- Raffles or Gaming prizes – no entries in raffles competition or any other gambling service, stakes or odds can be offered as rewards
- Restricted or Illegal items – no weapons, drugs, prescription medications or stolen goods can be offered as rewards
What can I give as a reward?
Royalties per project and interest on the principal of the amount lent out are allowed only when the company is already formed (incorporated) with a verified status; documentation to be provided to Lendpool for verification purposes while the campaign is in pending status. At this time Lendpool does not accept and approve any campaign that offers rewards in equity or shares in any legal entity in formation or already incorporated.
Why are campaigns ‘all or nothing’ deals?
We believe that all or nothing campaigns truly express if the project creator’s story and aspirations deserve to be backed. Also, if a project owner doesn’t reach his target, he won’t be able to complete his project he was asking funds for, so he will not be able to keep whatever he raises if he doesn’t reach his target.
How do I refund people who have donated to my campaign if I don’t reach my target?
We only process campaigns that have reached their goals. If a campaign ends without reaching its target we simply don’t process that order and no one will be charged.
What is the interest on the money?
Crowdfunding and Crowdfinancing differentiate from any other form of traditional funding with the fact there is no interest on the funds raised. No extra charges or ongoing fees. Period.
What are the taxes?
As a peer-to-peer financing platform Lendpool is based out of Toronto, Ontario, Canada. The tax on each contribution is 6% and is collected directly by the provincial government. For the funds raised on crowdfunding platforms every project owner solely has the responsibility to complete and submit their tax obligations. We are strongly advice project owners to consult with an accountant about the taxes and other fiscal and legal obligations.
What are the platform fees?
It is free to sign up to Lendpool and it is also free to launch your campaign. Lendpool only charges a 5% fee on top of a successful campaign so if you don’t reach your target, we will not charge you anything for that. Credit card fees and international money transfers fees are also charged and can vary from campaign to campaign depending on which country the project is being launched from. Please get in touch with us if you need more information on that. Our aim is to help creative people build their projects so we only win when you win.
Who is eligible to start a Lendpool campaign?
Anyone who is involved in technology, retail and art can start a Lendpool campaign. If you are under 18 you can still create a campaign but you will have to ask someone over-aged to be the one who lodges the project for legal reasons.
How do I get paid?
When you launch your campaign, go to your Lendpool account and complete your bank account details in order to process your payment if your campaign is successful. Please allow a few days for us to process your payment. If an international transfer is necessary please allow 7 working days for the money to be in your account.
How long does it take for my campaign to be approved?
Usually it will take a few days to get your campaign approved but we suggest that you allow up to one week for that to be done. That is one of our biggest priorities so rest assured we are moving as fast as we can to get your campaign live.
What if my campaign doesn’t get approved?
If your campaign is not approved our team will write back to you informing you why it was rejected and give you suggestions as to where you can improve it in order for it to get our approval. We have high standards and we believe that every campaign approved has great chances of success, which is why we prefer to spend some time with you in tweaking your campaign, than to let you have a bad experience using our platform. We want you to be successful.
What if I raise more money than my target?
You get to keep it! Every project owner that is more than 100% funded is free to use that extra money as she wishes. We suggest that if you have a particular plan on how to use the extra money if you go over your target describe it in your campaign content or video. Depending on the nature of the project some people chose to donate that extra cash to a charity and that is worth mentioning!
Can I end my campaign before the end date?
Yes, but you will not get the money you raised. If you have hit your target early and wish to end your campaign get in touch with us and we can discuss it with you. Campaigns that reach overnight success have big chances of raising a lot more money than their target, so we suggest to all campaign managers to let their campaign go on as per the original plan.
Can I run more than one campaign at a time?
Usually no, however if you wish to run two campaigns at the same time get in touch with us and we’ll try to help you out.
Where can I find the Lendpool logo and animation to edit into my video and use in my campaign?
Go to the top of the page and click on the ‘Start’ button (you need to login). A tab will open and you will see the Lendpool assets button. Click on it to be directed to our download page, you will find everything you need in there.
How can I be sure a project owner is who he says he is?
Before a campaign is launched our team has to approve them. We run a comprehensive check on the company submitting the project. The people representing that company who is launching a campaign also has to provide us with their personal information so we know those people are who they says they are.
We ask them for: residential address, a contact phone number, bank account and an internationally recognized form of photographic identification. This can be their passport or driver’s license but it needs to have their picture on it. They need to provide us with a scan of that document and it have to show current validity. As well the company has to submit the public documentation for verification purposes; the act (article) of incorporation, a licence to operate in their jurisdiction provided by their government, the balance sheet and other forms of business identification.