We fill all of our loan auctions – and you will start earning interest once the auction is completed successfully. Because we contractually commit borrowers to accept a loan before the auction starts (providing the final average rate of interest is at, or below, their stated reserve rate), there is no delay. Borrowers draw down funds immediately – and you start earning interest straight away.
The following notes apply for each of our loan products:
Business loans: When money is lent to a company and the rate of interest has been agreed through the auction process, the company then makes a monthly payment which will be the same every month for the term of the loan. This monthly figure includes interest calculated daily on the outstanding loan capital.
Property Bridging loans: Property Bridging finance borrowers either pay interest to investors monthly, or roll up the interest to the end of the loan. The capital advanced and any rolled up interest due will be repaid at the end of the term.
Green Energy loans: During the initial period, interest may be paid or rolled up. The next stage of the loan, usually commencing in year two, will see interest being paid and a small percentage of the capital. At the end of the loan, the remaining capital, usually reduced by 15%, will be repaid.
It is possible for a payment holiday to be taken and interest and /or capital caught up during the course of any loan.
If any loan repayment is outside of the norm we will include details in our loan announcement.
Please note: to get the best return from your portfolio you should log in and look at your Dashboard (the homepage for registered investors) on a regular basis to minimise un-invested funds in your investor account.