Our Due Diligence Process

We work closely with our borrowers to understand them and the security being offered.

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When it comes to lending Connective Lending knows that a one-size-fits-all approach to due diligence is not effective. Each loan enquiry must be judge on its on merit and we undertake rigorous due diligence on every loan enquiry to fully understand the needs of the borrower and the security being offered. What does that entails, we have provided details below for you.



Due Diligence on Borrowers

Every borrower’s needs are unique and hence we work closely with each borrower to understand their requirements. We carry out identity checks and conduct Anti-Money Laundering checks prior to any loan agreement being signed.  During the course of our due diligence, we will ascertain proof-of-ownership for the pledged asset. 

Loans secured against a personal asset means the credit rating of a borrower is irrelevant. Our primary observation is to determine the correct value of the asset that is being provided as security for the loan.

Valuation and Storage

All assets pledged to secure a loan against are handled by Connective Lending in a secured vault or an appropriate storage facility depending on the nature of the asset. At all times during storage, the asset is fully insured through Connective Lending's insurance, providing peace of mind to both borrowers and lenders.

To understand the authenticity and value of the asset, we work closely with third-party valuers and auction houses that are called upon to carry out valuations on our behalf.  During a valuation, the authenticity of the asset is checked to ensure it is genuine and not a fake or reproduction. A report is provided to Connective Lending which will be assessed and a loan offer is subsequently put forward to the borrower. Connective Lending will lend up to 70% of the asset value, depending on the type of asset being offered as security.

Warning: Please note that the property that you offer as security to acquire your loan may be repossessed and sold in the event of default.

All our loans are a minimum of 1 month to a maximum of 6 months.

Due Diligence

Every borrower's needs are unique and every loan enquiry must start from the beginning by examining the proposition and borrower. We work closely with each property borrower and carry-out identity checks and conduct searches via credit reference agencies.

We’ll examine closely the proposition and determine the viability of the enquiry. We’ll evaluate whether the borrower has clearly identified a realistic time-frame and has a satisfactory exit-strategy (via refinancing, sale of property or other means of repayment) in place to repay the loan. We always make a site visit to inspect the property. We may do this a number of times where required depending on the structure of the loan. We will instruct our solicitors who will undertake additional due diligence on every borrower as well as the property, title deeds, local searches and work towards placing a legal charge over the security.

Valuation and Legal Charge

We only take on the property where a first legal charge can be obtained to provide the best form of security. We obtain an independent third-party ‘red book valuation’ of each property which is conducted by a valuer who is also a member of the Royal Institution of Chartered Surveyors (RICS). Valuers must visit the site when performing a valuation on behalf of us. We will include in the report where applicable, evidence of comparable recent sales of property, information regarding the local area, and address any concerns we may have about the property.

Based on the information we collect during our due diligence process, a loan offer is put forward to the borrower. We are able to offer loans of up to 70% of the property value.

Ongoing Due Diligence

Upon a loan draw-down, our due diligence doesn’t stop there. We regularly monitor our borrowers’ progress and arrange site visits (where necessary) to ensure the loan is progressing smoothly. Ongoing monitoring ensures that any issues are picked up early and a plan is put in place to mitigate such risks.

Warning: Please note that the property that you offer as security to acquire your loan may be repossessed and sold in the event of a default.