Proplends Borrowers Guide to Peer-to-Peer Loans

For more information about borrowing, please call +44 (0)203 397 8290 or email us at [email protected]

Peer-to-Peer Borrowing for income producing commercial property

Retail Office Industrial

August 2015

For more information about borrowing, please call +44 (0)203 397 8290 or email us at [email protected]

Submission Information 1.  Summary of the borrower, property & full tenancy

schedule along with copies of the 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

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Peer-to-Peer Borrowing

Loan Criteria

Proplend is a Peer-to-Peer (P2P) lending platform for borrowers who are owners of income producing commercial property in England and Wales. The platform creates a marketplace that connects borrowers who require loans to investors who want to lend.

Loan Amounts: £150,000 to £5,000,000

Loan Types: Short Term Bridge loans and Senior Debt Term Loans

LTV: up to 75%

Interest Cover: minimum of 1.25 x

Loan Terms: 6 months to 5 years

Loan Rates: circa 5-15% | Fixed Rates | Interest only

Assets Classes: Income producing Offices, Industrial, Retail, Leisure & Residential Blocks. No development sites or private personal residences.

Borrower Type: Limited Company, LLP, Trust, Sole Trader, Partnership, SIPP and SSAS. UK Based borrowers only (Overseas borrowers considered on a case by case basis).

Purpose: Re-finance and Capital raising (purchases on a case by case basis).

Arrangement Fee: 2%

Early Repayment Charge:

Yes, on a case by case basis

For more information about borrowing, please call +44 (0)203 397 8290 or email us at [email protected] 2

Borrowing Process

1. Initial Application The borrower will register on the Proplend platform and provide: •  Loan type, amount & term

•  Property details & estimated value •  Lease Income details •  Borrower profile

2. Primary Review & 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 will visit the property and meet the borrower •  Borrower will supply full due diligence material •  Professionals reports will be instructed (at the borrowers

expense) –  Valuation –  Report on Title –  Any other relevant reports

•  Final credit checks

4. Listed on Platform for Funding & 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 (apporx. 5-7 business days) and lenders will be invited to make an offer to lend.

•  Once the loan requirement is fully funded, the Loan Request will close •  Prepared security documentation will be 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 & Loan redemption •  Interest is paid by the borrower monthly in arrears

•  Loan principal is due at the end of the loan term

For more information about borrowing, please call +44 (0)203 397 8290 or email us at [email protected] 3

Contact

If you have a borrowing requirement, please apply on line at https://www.proplend.com/borrower-registration/ Contact Details: Brian Bartaby – Founder & CEO [email protected] Richard Berkeley – Borrower Business Development [email protected] Julie Pavlick – Underwriting [email protected] Office +44 (0) 203 327 8290

Proplend Ltd is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register under firm registration number 662661. Proplend Ltd registered office is 145-157 St John St, London, EC1V 4PW (Company Number: 08315922). Copyright © Proplend 2014-2015. All rights reserved.

Proplends Borrowers Guide to Peer-to-Peer Loans

Real Estate

Transcript of Proplends Borrowers Guide to Peer-to-Peer Loans