A review of P2P lender Funding Secured

Funding Secured commenced operations in March 2013 by a number of experienced property investors and is based in Sittingbourne in Kent. Their role is to bring together lenders and borrowers via their website and in person. Hopefully, as a borrower or a lender you will find this Funding Secured review useful. Who do Funding Secured provide finance for? Loans are available to businesses including LLPs, partnerships and limited companies based in the United Kingdom. How much can be borrowed? Fixed rate, secured, capital and interest repayment loans can be obtained for in excess of £25,000. Normally, security would consist of a first legal mortgage over a house or commercial property plus a guarantee by the directors of a limited company or members of LLPs. There is no maximum sum that can be borrowed and the term of the loan can be agreed between lender and borrower. What can the loans be used for? Loans can be made available for any reasonable business purpose such as towards the purchase of business premises or plant and machinery. What re the Interest rates and charges? The interest rate is subject to agreement between the lender and borrower but, as a guide, a lender would normally be looking for a return of at least 6% per annum. All fees are payable by the borrower. There is a loan application fee of £199, a completion fee of 2% of the amount advanced, a valuation fee that will vary dependent upon the value of the security provided and lender's legal fees of £480 including VAT plus land registry and search fees. The borrower will also have to pay their own solicitor's legal fees. What is the procedure for arranging a loan?   The borrower will decide the terms of the loan that they are seeking such as the amount, the interest rate that they are prepared to pay, the number of years that they wish to repay the loan over and the security that they are prepared to provide. Funding Secured will then carry out certain checks such as a credit reference search on both the business and the business's owners before agreeing to advertise the borrower's loan requirements on their website. Funding Secured will then seek to match the lender with a potential borrower who has access to the loan request on the website of Funding Secured. In addition Funding Secured will contact potential lenders by e-mail and/or phone to notify them of the loan details. Once the introduction has been made, it is then up to lender and borrower to have further discussions during which period the lender will complete their own due diligence on the borrower. Solicitors and valuers would be instructed by both parties and the lender would arrange to make available the funds in due course. If this Funding Secured review is of interest to you please feel free to contact Choice Loans and we will answer any questions. If you wish to speak to one of our experienced Advisors either telephone us on 01494 410125 or complete our peer to peer commercial loan enquiry form.