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