Invest & Fund Review

The number of peer-to-peer lenders continues to grow which, from a borrower's perspective, is positive. Here at Choice Loans, we are committed to providing our clients with as many lending options as possible. In this respect, we provide a review of Invest & Fund that was set up back in November 2012.

Who do Invest & Fund lend money to?

Loans are available to established, expanding small and medium sized businesses located in England, Scotland and Wales that have been trading for a minimum of 2 years, have audited accounts and a turnover of over £80,000 per annum. Loan applications will also be considered from new businesses and start-ups.

How much can you borrow?

The minimum loan is £5,000 and the maximum loan is £1 million. The loan is repayable on a capital and interest repayment basis over 6 months to 5 years.

Loans of up to £50,000 are available either on a secured or unsecured basis although a personal guarantee(s) will be required in all cases from one or more directors/ principal shareholders. For loans in excess of £50,000 security must be provided such as a chattel mortgage, debenture, deed security and guarantee(s).

Purpose of loan

Loans are made available to assist in a business's growth so can be used for a variety of things such as the purchase of premises, stock, fixtures and fittings, working capital and plant and machinery.

Interest rate and charges

The fixed interest rate will be in the region of 5% to 15% per annum depending upon the credit rating and the Dynamic Bidding Exchange. There is a credit check fee of £50 payable when submitting the loan application.

There is an arrangement fee based upon the % of the amount advanced and the term of the loan. For instance a 2% arrangement fee would be payable on a loan repayable over a 6 month period, a 3% arrangement fee would be payable on a loan repayable over 24 months and a 4% arrangement fee would be payable on a loan repayable over a 48 month period.Any security and valuation fees are also payable by the borrower.There is no early redemption penalty.

Procedure

The borrower completes a loan application online that is assessed by Invest & Fund who also undertake credit reference checks on both the business and also usually the directors/principal shareholders. If the application is successful, the business is given a credit rating based upon a Five Star Rating system. The loan proposition will then be made available to potential investors who can bid to provide funding by means of the Dynamic Bidding Exchange.  This results in those investors offering the lowest rates being chosen with the Borrower's Rate being the lowest weighted average. The bidding process can last for up to 10 days. The borrower then has up to 5 working days in which to decide if they wish to draw down on the funds. Once all formalities are completed, Invest & Fund release the loan monies and monthly repayments are made by standing order.

 Please telephone us on 0845 1260350 if you wish to discuss a lending proposition.