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FAQs

Read the information below to learn more about Connective Lending, and how investing and borrowing works on our platform.

 

About

Connective Lending Ltd (Company Registration Number:11221510) is an online peer-to-peer (also known as loan-based crowdfunding) platform. It allows lenders to invest directly into loans secured by personal assets or property.
Yes. We are regulated by the Financial Conduct Authority (FCA) under registration number 923900.

Borrowers

Peer-to-Peer Lending (P2P) is a concept that allows borrowers to directly source funding from everyday people with savings that we call Lenders. We know that Lenders today want a better return on their money, so we give them the ability to invest in loans. We also help borrowers achieve their goals through this product.
We made this process easy by providing you with two options. Firstly by filling in the enquiry form located on specific asset pages. Alternatively, by calling us on 02381 277030.
For loans secured against your assets (watches, cars, jewellery etc), we do not perform any credit checks as your credit history is not important. We also don`t report any failure if you cannot repay your loans. Our loans are dependent on the value of the assets. In other words, we determine the correct value of the collateral for the loans through the assets presented.
We provide loans on a vast range of assets. Some of the most commonly used are watches, jewellery, cars, etc. However, we also have experience of lending against rare and one-off pieces. If you have something valuable then we can provide you with a loan.
All loan agreements last for six months. The loans are repayable in full at the end of the loan term. However, you can repay the loan at any point during the six month term subject to a minimum period of 30 days interest and charges. The interest accrues by the day, so you only pay for the days that you use. Your interest is paid at the end of the loan term.
We can provide several options for sending your assets to us, from a fully insured Royal Mail Next Day Special Delivery service, for small items such as watches and jewellery, to a specialist removal team for assets like cars and fine arts, etc. Your dedicated account manager will assist you with the most suitable arrangements when you are ready to proceed.
If you cannot repay your loan, we will give you options that will include renewing the loan for a further six months by simply paying the interest accrued over the loan-term. We always look to work with our borrowers to ensure they can retrieve their assets. However, in the unfortunate situation where you can not redeem your assets, we will sell them as soon as possible to recover the debt. If there is any surplus from the sale proceeds, after paying all fees, we will return it to you.

For loans against property, Connective Lending will charge a monthly fee of 0.85% - 1.12% per month. There is also a 2% 'Arrangement fee' applicable on all property loans.

For loans against your personal luxury asset, please click on our rate card which can be found here.

The interest rate we apply reflects the loan amount and the asset that you have pledged as security. Our rates start from as little as 1.5% per month. APR and Terms of Loan; Minimum repayment period of one month. Our minimum rate of APR is 18.8%. Our maximum rate of APR is 69.25%. Representative APR: 36.35% All loans are for a fixed term of 6 months. You can repay early at any time with no penalty fees. Representative Example: Total credit: £10,000. Loan term of 6 months. Annual Interest rate: 36% (fixed). Interest for 6 months: £1800. Amount repayable in one installment: £11800.00 (39.1%APR)

Investors

We do not offer our lenders a 'Provision Fund' like other platforms. All our loans are based on assets that act as security. We feel it is far better to not pass the cost of operating such funds directly to our lenders.
We do not carry out a creditworthiness or affordability assessment against borrowers looking to borrow against their assets because the loans are secured on the value of the assets. If a loan defaults and a need to sell assets arises, we cannot pursue the borrower for any shortfall of capital plus interest from the sale.
The borrower must request orally or in writing that they are withdrawing from the loan agreement within 14 days. They must repay the capital and daily interest into our client account no later than 30 calendar days from the date of giving notice.
When taking a loan against a property.

Introduction

As part of our regulatory requirement, Connective Lending have set out below our Wind Down Plan detailing what would happen if Connective Lending were required to wind-down.

When a wind-down is triggered by us, we are effectively winding the business down in an orderly manner and with minimum disruption to our stakeholders. We ensure that the plan the firm has chosen to use to wind-down can be executed while minimising risks to our stakeholders and providing the best possible outcome.

Our wind-down plan is a living document and is reviewed continuously to ensure it reflects the changes within the business and regulations.

Fully Funded Wind Down Plan

In a situation where the firm was required to wind-down, we will fund, manage and administer our wind-down plan in house. All of our live P2P loans will be administered within their contractual terms that both lenders and borrowers had entered into.

We believe our in-house expertise is best placed to wind-down a firm as we know the product, asset, customers, and systems compared with transferring the operations to a third-party.

Our wind-down plan allows us to monitor and identify at all times that we have adequate resources (both financial and non-financial) in place to wind down our platform in an orderly manner with minimal disruption.

How do you know you need to wind-down?

Winding down a business is never an easy decision. Our team continuously monitor triggers for any possible changes in the firm’s viability. Triggers are monitored using data (such as performance and financial), harvested from our website and/or third-party. Performance data reflects how the firm is operating currently against past performance. The data is put forward as management information to the board of directors, for horizon scanning, detecting possible risks/ threats that may influence or have a bearing on the firm.

Connective Lending seeks all alternative solutions and recovery options including additional funding/investment, sale of business and reduction of costs. All options are reviewed by the board however, if it is deemed due to time or other factors that recovery options are not suitable, the firm will seek to wind-down the business rather then cause disruption to our customers or sector.

What will change during Wind Down?

Once a wind-down decision is in place we will begin to scale back our service and no longer accept new lenders or borrower enquires. Lenders will not be able to add new funds and any loans currently in funding will be cancelled. Certain activities will be suspended or cancelled with an immediate effect such as marketing. A wind-down team will remain in place to effectively wind-down the business. This will be made up of the directors of the firm who will stay in place to wind-down the firm.

Connective Lending charges an administration fee from 0.2% per month against the loan amount, dependent on the asset and size of the loan. It also charges an 'Arrangement fee' against its property loans at 2% of the loan amount.

You must be an individual, a UK resident and be over the age of 18 to become a lender on this platform.
Unfortunately, we currently do not accept companies to register as lenders.
Unfortunately, we currently do not accept international investors.
For initial registration, we start by asking for some personal information, like your full name. We also make you create a password and set a memorable word. If you wish to proceed to full registration to invest, we will need more information such as your address, date of birth, and bank account details.
No. Registering as a lender and investing is free.
Yes. You must have a UK bank account that is currently active.
To create a lender account, you will need to register. You can do so by clicking on the ‘Open Account’ button located on the ‘Invest’ page or click here.
We are sorry to see you leave. If you wish to close your account, please contact the customer service team at customerservices@connectivelending.com. Please note, it is not possible to close your account if you have current active investments.
From time-to-time, checks conducted via Equifax may fail due to insufficient data about you. That is common where the lender has recently moved address, changed names, or opened a new bank account. In these instances, we will request further information in the form of I.D, for you to upload to our secure site. From there, we will conduct a manual check and update our system records if the information provided is sufficient.
As part of being regulated by the Financial Conduct Authority (FCA), we must conduct Know Your Customer (KYC) checks on our lenders to verify your identity and prevent money laundering. Our third-party provider, Equifax, handles our AML checks. These checks are soft and do not affect your credit history or score in any way.
If your details need amending, please contact the customer service team and inform them at the earliest opportunity. We will also need you to provide updated documents so we can carry out KYC and to amend your account details.
If you have forgotten your password, you can reset it by clicking on the ‘Forgotten password’ link.
The minimum amount you can invest in any one loan is £25.
Depending on the loan tranche you are looking to invest in, certain restrictions may apply. To ensure lenders diversify their investment, we have placed restrictions on the maximum amount an investor can invest against their ‘Available Balance’ to prevent overexposure.
We know not all investors have the same appetite for risk. Some may favour a higher risk, where others may choose a lower risk strategy. That is why we have devised a strategy of separating each loan into three tranches, each with a different loan-to-value (LTV), interest rate and priority ranking.
Yes, from time-to-time, we will place a 24hr restriction on loans during funding. That is to ensure investor diversification and that there are many lenders to one loan.
Simple, you do. We place all loans with images, information and supporting documents on the ‘Available Loan’ page. From there, you are free to select which loan you wish to invest in, the amount you want to invest and in which tranche.
When a new loan launches for funding, we will send out an email notification to all registered users 24hrs before the loan goes live. The email will provide information regarding the loan and the time the loan will go live for funding.
All loan terms are for a period of 6 months. However, the borrower can extend the loan for a further 6 months by paying the interest due.
Once an investment starts, that investment can not be altered. However, you can sell your investment on the ‘Secondary Market’ after activation.
Capital and Interest are paid at the end of the loan term when the borrower repays the loan.
Interest earned from any loan is treated as investment income by HM Revenue & Customs. The Interest we pay on your investment is gross; no tax is deducted “at source” by peer-to-peer lending platforms. Our investors are responsible for the payment of any tax due to the HMRC. Tax will be payable at your marginal rate.