Read the information below to learn more about Connective Lending, and how investing and borrowing works on our platform.
Connective Lending Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number: 923900). We are Registered in England and Wales at 14 The Marlands Centre, Portland Terrace, Southampton, SO14 7SJ, under company number 11221510.
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.
For loans secured against your personal 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 personal 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.
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, will be returned to you.
For loans against your personal luxury asset, please see our rate card below.
|£1,000 to £4,999||5.0% p/m|
|£5,000 to £9,999||4.0% p/m|
|£10,000 to £119,999||3.0% p/m|
|£120,000 +||Starting from 1.5% p/m|
All fees include an admin fee and lenders' interest rate charged by Connective Lending.
The interest rate charged on loans under £1,000 and over £120,000 will be quoted on a case-by-case basis subject to various parameters at the time of offer.
The costs quoted above are net of storage and transportation fees and any other costs incurred if applicable.
Minimum repayment period of one month.
Our minimum rate of APR is 18.8%. Our maximum rate of APR is 93.54%. Representative APR: 39.24%
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: £1,800. Amount repayable in one installment: £11,800.00 (39.24%APR).
We do not carry out a creditworthiness or affordability assessment against borrowers looking to borrow against their personal 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.
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 1.5% per month against the loan amount, dependent on the size of the loan.
We are sorry to see you leave. If you wish to close your account, please contact the customer service team at firstname.lastname@example.org. Please note, it is not possible to close your account if you have current active investments.
We must conduct Know Your Customer (KYC) checks on our lenders to verify your identity and prevent money laundering. We use a third-party provider, Equifax, to verify information on our AML checks. These checks are soft and do not affect your credit history or score in any way.
Once an investment starts, that investment can not be altered.
Capital and Interest are paid at the end of the loan term when the borrower repays the loan, or when the asset is sold in the event of a loan defaulting.