Crowdfunding lets individuals finance a project through donations, loans or shares via a platform; for interest-bearing loans, the platform must hold the European crowdfunding service provider licence, granted in France by the AMF.
Three kinds of crowdfunding to tell apart
Crowdfunding covers donations with or without a reward, as on Ulule, loans with or without interest, and investment in securities. Each kind falls under a different regime, and interest-bearing lending between individuals is now governed by a European regulation.
EU Regulation 2020/1503 and the PSFP status
Since 10 November 2021, interest-bearing loan platforms have fallen under the European regulation on crowdfunding service providers, called PSFP in France. After a transition that ended in November 2023, this status replaced the former French CIP and IFP regimes for these activities.
The AMF's role and the ESMA register
In France, the Autorité des marchés financiers (AMF) authorises and supervises crowdfunding providers. Before lending, check the public register of the European Securities and Markets Authority, which lists authorised providers across the Union and helps unmask a cloned platform.
Fundraising cap: 5 million euros per project
A single project owner may not raise more than 5 million euros over twelve months through authorised platforms in the Union. Above that, financing falls under the heavier prospectus regime, reserved for large-scale transactions.
Knowledge test and loss simulation
A non-sophisticated investor must take an entry test on the risks and simulate their ability to bear losses, calculated on 10 % of net worth. The platform warns them when an investment exceeds 1,000 € or 5 % of that net worth.
A four-day cooling-off period
After each investment offer, a non-sophisticated investor has four calendar days to revoke their commitment without giving reasons or paying a penalty. A platform demanding immediate, irrevocable payment is sidestepping this protection set by the European regulation.
Lending to an SME or a renewable energy project
Crowdlending platforms mainly finance SMEs, property developers and solar farms. Individuals drawn to the energy transition can also read our page on financing solar panels between individuals, which separates collective projects from home installations.
Default risk and no guarantee
The capital you lend is covered neither by the deposit guarantee fund nor by any public insurance. Delays and defaults are common in property development; spreading money across many projects and reading the key investment information sheet limits your exposure.
How interest paid by the platform is taxed
Interest paid by a platform is in principle subject to the flat-rate levy, with an option for the progressive income tax scale. The platform sends a single annual tax statement; the detailed rules are on our page about tax on private loans.
Project owners: preparing a fundraising campaign
A company seeking lenders through a platform provides balance sheets, forecasts and any collateral. For smaller sums from relatives, our guide to business loans between individuals covers the acknowledgement of debt and the shareholder current account.
Fake crowdlending platforms
Websites promising a guaranteed 12 % and imitating the names of authorised players regularly appear on the AMF blacklist. Their funds often flow to foreign accounts or cryptocurrency wallets, and withdrawals become impossible after the first payments.
Reporting a suspicious offer in France
A dubious investment proposal can be reported to the AMF through Épargne Info Service, or on Signal Conso. If you have already paid money, file a complaint, warn your bank and beware of firms offering to recover your lost funds.
Lending through a crowdfunding platform, step by step
- Check the platform's PSFP licence in the ESMA register and look through the AMF blacklists.
- Read the key investment information sheet for each project, its collateral and its default history.
- Complete the knowledge test and the simulation of your capacity to bear losses.
- Invest modest sums spread over several projects and sectors to limit the risk.
- Use the four-day cooling-off period to reread the offer before committing for good.
- Keep the single annual tax statement to declare the interest you received.
Crowdlending fees and returns
| Item | Order of magnitude (indicative) | Details |
|---|---|---|
| Fees for the lender | Often nil or low | Vary by platform, check the terms and conditions |
| Commission charged to the project owner | Percentage of the amount raised | Set by each PSFP |
| Interest received | Flat-rate levy | Option for the progressive scale available |
| Maximum raised per project | 5 million euros over 12 months | EU Regulation 2020/1503 |
| Warning threshold | 1,000 € or 5 % of net worth | For non-sophisticated investors |
What the platform will ask you for
- A valid ID document
- Recent proof of address
- Bank details in your name for repayments
- Knowledge and experience questionnaire
- Statement of net worth for the loss simulation
- The single annual tax statement, kept every year
Common crowdfunding mistakes
- Investing on a platform missing from the ESMA register because it displays the logo of a supervisory authority.
- Believing in a guaranteed return of 10 % or more, a promise incompatible with a genuinely risky loan.
- Putting all your emergency savings into a single property project, with no diversification and no cash left for hard times.
- Paying in cryptocurrency or by transfer to a foreign account held in the name of a private person.
- Confusing a donation pot with a loan, then demanding a repayment that nothing provides for.
Crowdfunding and crowdlending: questions lenders ask
Does a donation platform need a PSFP licence?
No. Donation platforms, with or without rewards, are outside the European crowdfunding regulation. They must nevertheless follow payment services rules whenever they collect funds on behalf of project owners.
How much can an individual lend through a platform?
The European regulation sets no cap for investors, but it requires warnings above 1,000 € or 5 % of net worth for a non-sophisticated investor. Be careful: only lend sums whose total loss would not put you in difficulty.
Can I get my money back before the loan matures?
Generally not: the loan runs until its agreed end date. Some platforms offer a bulletin board where you can sell your claims to other investors, with no guarantee of finding a buyer or recovering the face value.
How can I recognise a fake crowdlending platform?
It promises a guaranteed fixed return, is missing from the ESMA register, uses a name close to a well-known player and pushes you to pay quickly. Also check the AMF blacklist and distrust any adviser who contacts you on WhatsApp.