Peer To Peer Borrowing For Income Producing Commercial Property Retail Industrial Office October 2017
Peer To Peer Borrowing Proplend is a Peer To Peer (P2P) Lending platform for borrowers who own income producing commercial property in England and Wales. The platform creates a marketplace connecting borrowers who require loans to investors who want to lend. Loan Criteria Loan Amounts: 150,000 to 5,000,000 Loan Types: LTV: Up to 75% Interest Cover: Loan Terms: Loan Rates: Assets Classes: Borrower Type: Purpose: Arrangement Fee: 2% Early Repayment Charge: Short to Medium Term Bridging and Property Investment Loans Minimum of 1.25 x 6 months to 5 years Circa 5-12% p.a. Fixed Rates Interest only Income producing Offices, Industrial, Retail, Leisure and mixed-use. No development sites or private personal residences. Limited Company, LLP, Trust, Sole Trader, Partnership, SIPP and SSAS. UK Based borrowers only (Overseas borrowers considered on a case by case basis). Refinance, Purchase and Capital raising Yes, on a case by case basis Submission Information 1. Summary of the borrower, property and full tenancy schedule along with copies of leases 2. Cash flow of the property 3. Identification information on the borrower or borrowing vehicle 4. Assets and Liability statement 5. Previous valuation (if available) Security Required 1. First legal charge over the property 2. Personal Guarantee (case by case basis) 3. Corporate Debenture (case by case basis) 4. Share Charge (case by case basis) 5. Proplend retains 6 months worth of interest from the gross loan amount to be used in the event the borrower fails to meet a monthly interest payment. Subject to underwriter discretion shorter reserves for shorter terms. 1
Borrowing Process 1. Initial Application The borrower will register on the Proplend platform and provide: Loan type, amount and term Property details and estimated value Lease Income details Borrower profile 2. Primary Review and Tranche Allocation Proplend will review the initial application and contact the borrower to discuss the application and whether we believe the loan will be successfully funded from our pool of lenders. Each loan is split into a maximum of three loan LTV-based Tranches Each tranche will have its own individual interest rate, which will match the blended rate that the borrower will pay when combined (see Loan Matrix example opposite) Proplend will issue an indicative Heads of Terms. 3. Full Due Diligence Full due diligence will include: Proplend visiting the property and meeting the borrower Borrower supplying full due diligence material Professionals reports being instructed (at borrowers expense) Valuation Report on Title Any other relevant reports Final credit checks 4. Listed on Platform for Funding and Closing When the due diligence is fully completed, the Loan Requirement along with the supporting documentation will be listed live on the platform for a pre-agreed time period (approximately 5-7 business days). Lenders will be invited to make an offer to lend. Once the loan requirement is fully funded, the Loan Request will close Security documentation will be prepared, agreed and signed On the day of drawdown, subject to final legal sign off, the monies will be transferred to the borrowers solicitors account. 5. Monthly Interest and Loan Redemption Interest is paid by the borrower monthly in arrears Loan principal is due at the end of the loan term 2
About Proplend Proplend was founded in 2014 and is now a team of 10 based in Richmond, London Proplend s senior team has over 80 years combined Property Finance experience Unlike many peer to peer platforms who continue to operate on interim permissions, Proplend is fully regulated by the FCA, a significant milestone and endorsement of its operational processes and control environment Investor and borrower funds are held in a ring-fenced client monies account held at Barclays Bank (Standard & Poor s rated A-) Target Group (S&P rated Above Average) acts as standby servicer and are ready to step in to administer loans should Proplend fail Proplend has over 1,000 registered lenders, a number of whom are repeat investors seeking immediate lending opportunities To date, Proplend has funded almost 50m of property with 25m of loans at an average LTV of under 60% No arrears or defaults a number of loans have reached maturity, all repaying on or ahead of the loan expiry date On the back of its full FCA approval, Proplend has launched a flexible Innovative Finance ISA (IFISA) product and is building a strong pipeline of loans to invest that capital 3
Contact Contact Details: Richard Berkley Borrower Business Development rberkley@proplend.com Stewart Bruce - Borrower Business Development sbruce@proplend.com Philip Gould Head of Credit pgould@proplend.com Borrowing Team +44 (0) 203 637 8418 Main office +44 (0) 203 397 8290 Proplend Ltd is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register under firm registration number 726646. Proplend Ltd registered office is 20-22 Wenlock Road, London (Company Number: 08315922). Copyright Proplend 2014-2017. All rights reserved. 4