Lender eMoneyUnion tops £300k via crowdfunding platform

CHESHIRE-based lender eMoneyUnion has hit its fundraising target of £300,000, which has been delivered through a crowdfunding platform.

Founded by Alderley Edge entrepreneur Lee Birkett, eMoneyUnion has wooed 103 investors through the crowdcube platform.

The business will lend to consumers currently excluded from the mainstream financial services sector, and describes itself as a “people to people lending platform”, where individuals with spare savings lend to screened and profiled borrowers.

Its terms require that borrowers must secure the backing of a family member or friend to act as their personal guarantor, and it charges a much lower interest rate than payday lenders.

Among its investors is Manchester-based entrepreneur David Newns, who was one of the founders of e-cigarette business CN Creative before its sale to British American Tobacco.

As well as investing in the business, Mr Newns has joined the board of eMoneyUnion.

Lee Birkett said: “The eMoneyUnion equity crowdfunding process has gone better than we could have ever imagined. We can now get on and create jobs in the region – we could not have raised this funding through traditional means.

“I am really pleased to have David on board with us. His track record speaks for itself with a proven high multiple exit to a FTSE 100 company and in-depth investment management experience”

Mr Newns added: ““Crowdfunding is developing in to being the most disruptive technology in the financial sector and eMoneyUnion is positioned perfectly to take advantage of this global revolution.

“I have been looking to support a company with the depth and expertise to make a real difference. I am looking forward to working with Lee and his team to build eMoneyUnion into the market leader in social lending.”

Mr Birkett said the crowdfunding platform was proving popular for a number of reasons: “It’s accessible – people can invest as little as £10 – they don’t have to be high net-worth – and there is also appetite for people to help others who need to borrow but can’t access funds.”