Why Commercial Real Estate Debt is the Perfect Partner for Peer-to-Peer (P2P) Lending: P2P Lending has undoubtedly revolutionised the traditional banking and lending industries. The introduction of new technology and the ability to draw and process information quickly has left the traditional finance sector napping.
At Proplend, we continuously apply the latest technologies adopting them alongside traditional lending models to ensure our offering is as efficient, transparent and inclusive as possible.
The document discusses mezzanine lending as a potential solution to bridge the funding gap in commercial real estate financing created by the financial crisis. It summarizes that:
1) Mezzanine lending sits between senior debt and equity investment in terms of risk, and can offer higher returns than senior lenders.
2) Mezzanine lenders have been active in refinancing existing debt on quality properties with high loan-to-value ratios in order to allow borrowers to restructure their capital without diluting equity.
3) Going forward, mezzanine lending is expected to play an increasing role in commercial real estate debt markets, especially in refinancing existing loans, but may eventually expand into acquisition and development
The document summarizes a fund that provides senior loans secured by real estate assets to professional real estate developers and investors. The fund focuses on loans for value-add real estate projects located primarily in the western US. It aims to preserve capital while achieving solid risk-adjusted returns through a strong credit focus, limiting loans to 65% LTV, and requiring significant equity contributions from borrowers. The fund is managed by an experienced team with a successful track record and uses an independent investment committee to review loans.
The document summarizes the European mezzanine lending market in the first half of 2012. It finds that the number of active mezzanine lenders has decreased from 69 to 54 as the market continues to rationalize. Average maximum loan-to-value ratios have remained stable at 82.4% while required returns have fallen slightly to 15.6%. Mezzanine lending volumes increased over the last 12 months, though transaction activity has been limited by a weak senior debt market. The top three geographic markets for mezzanine lenders are the UK, Germany, and France.
Veteran Silicon Valley attorney Roger Royse will discuss, compare and contrast the various options available to entrepreneurs when it comes to funding their startup.
The speaker will address some common questions when it comes to funding for startups, including:
1) What are the best funding options for entrepreneurs to scale their business?
2) When should entrepreneurs pursue external funding?
3) How do entrepreneurs choose the right investor?
4) What alternative sources of funding are available?
5) How and why should a founder stage their funding rounds?
6) When should a founder think about exiting?
7) How can advisers help with the funding process?
and more!
This document provides an overview of Chapter 14 from the textbook "Managing Credit Risk Under The Basel III Framework, 3rd ed" on collateralized debt obligations (CDOs). It discusses how CDOs redistribute credit risk from illiquid debt markets to create investment opportunities with different risk-return profiles. CDOs issue multiple tranches that allocate cash flows and losses in order of seniority, with senior tranches receiving priority over mezzanine and equity tranches. CDOs can be structured on actual debt portfolios or through synthetic transactions using credit default swaps.
This document summarizes key terms and considerations for a termsheet between investors and companies. It discusses binding provisions like exclusivity periods, confidentiality clauses, and dispute resolution. It also covers negotiating valuation, share types, management rights, liquidation preferences, representations and warranties, and exit rights. Anti-dilution protections like full ratchet and weighted average are explained. The document cautions that over-negotiating early stage termsheets can dampen investor confidence. Potential issues like founder exits, employee stock plans, and problems with multiple angel investors are also addressed.
through this slide , one can get a brief idea of what securitization is , how it works and the differences between conventional and Islamic securitization .
Pathway Lending, the Tennessee Bankers Association, and the Tennessee Housing Development Agency are working together to identify qualified developers, underwrite loan requests, and participate loans with Subscribing banks.
These loans provide developers with a long-term, fixed rate, permanent mortgage for their Low-Income Housing Tax Credit awarded developments. These loans also play a major role in improving economic conditions, incomes, taxes, and jobs in low-income communities across Tennessee.
The document discusses mezzanine lending as a potential solution to bridge the funding gap in commercial real estate financing created by the financial crisis. It summarizes that:
1) Mezzanine lending sits between senior debt and equity investment in terms of risk, and can offer higher returns than senior lenders.
2) Mezzanine lenders have been active in refinancing existing debt on quality properties with high loan-to-value ratios in order to allow borrowers to restructure their capital without diluting equity.
3) Going forward, mezzanine lending is expected to play an increasing role in commercial real estate debt markets, especially in refinancing existing loans, but may eventually expand into acquisition and development
The document summarizes a fund that provides senior loans secured by real estate assets to professional real estate developers and investors. The fund focuses on loans for value-add real estate projects located primarily in the western US. It aims to preserve capital while achieving solid risk-adjusted returns through a strong credit focus, limiting loans to 65% LTV, and requiring significant equity contributions from borrowers. The fund is managed by an experienced team with a successful track record and uses an independent investment committee to review loans.
The document summarizes the European mezzanine lending market in the first half of 2012. It finds that the number of active mezzanine lenders has decreased from 69 to 54 as the market continues to rationalize. Average maximum loan-to-value ratios have remained stable at 82.4% while required returns have fallen slightly to 15.6%. Mezzanine lending volumes increased over the last 12 months, though transaction activity has been limited by a weak senior debt market. The top three geographic markets for mezzanine lenders are the UK, Germany, and France.
Veteran Silicon Valley attorney Roger Royse will discuss, compare and contrast the various options available to entrepreneurs when it comes to funding their startup.
The speaker will address some common questions when it comes to funding for startups, including:
1) What are the best funding options for entrepreneurs to scale their business?
2) When should entrepreneurs pursue external funding?
3) How do entrepreneurs choose the right investor?
4) What alternative sources of funding are available?
5) How and why should a founder stage their funding rounds?
6) When should a founder think about exiting?
7) How can advisers help with the funding process?
and more!
This document provides an overview of Chapter 14 from the textbook "Managing Credit Risk Under The Basel III Framework, 3rd ed" on collateralized debt obligations (CDOs). It discusses how CDOs redistribute credit risk from illiquid debt markets to create investment opportunities with different risk-return profiles. CDOs issue multiple tranches that allocate cash flows and losses in order of seniority, with senior tranches receiving priority over mezzanine and equity tranches. CDOs can be structured on actual debt portfolios or through synthetic transactions using credit default swaps.
This document summarizes key terms and considerations for a termsheet between investors and companies. It discusses binding provisions like exclusivity periods, confidentiality clauses, and dispute resolution. It also covers negotiating valuation, share types, management rights, liquidation preferences, representations and warranties, and exit rights. Anti-dilution protections like full ratchet and weighted average are explained. The document cautions that over-negotiating early stage termsheets can dampen investor confidence. Potential issues like founder exits, employee stock plans, and problems with multiple angel investors are also addressed.
through this slide , one can get a brief idea of what securitization is , how it works and the differences between conventional and Islamic securitization .
Pathway Lending, the Tennessee Bankers Association, and the Tennessee Housing Development Agency are working together to identify qualified developers, underwrite loan requests, and participate loans with Subscribing banks.
These loans provide developers with a long-term, fixed rate, permanent mortgage for their Low-Income Housing Tax Credit awarded developments. These loans also play a major role in improving economic conditions, incomes, taxes, and jobs in low-income communities across Tennessee.
The Strategic Asset Fund is managed by ELP Capital Advisors and aims to provide consistent long-term returns of 12% annually through short-term, senior real estate loans. ELP evaluates borrowers based on their character, capacity, capability and collateral to ensure they can repay the loan. This focus on qualitative factors differentiates ELP from other hard money lenders. The current economic environment with reduced traditional lending presents opportunities for ELP to finance quality real estate projects and generate high returns for investors with relative safety of principal.
The document discusses the bankruptcy of Energy Future Holdings, which underwent the largest leveraged buyout in history. It accumulated $40 billion in debt and has now filed for bankruptcy. There is currently a legal dispute over where the bankruptcy proceedings will take place. The bankruptcy could help clarify fraudulent transfer law, as creditors may argue the leveraged buyout constituted a fraudulent transfer. Leveraged buyouts involve taking on substantial debt, making the acquiring company vulnerable if it cannot service the debt. Careful target selection is important to mitigate bankruptcy risk.
Vehicle loans are given for both used as well as own vehicles. However, if the loan is being taken for used vehicle then it is mandatory that it is not more than five years old. Although some banks provide 100% finance, however financing 80% of the vehicle value is usually the norm. The main security for this type of loan is the vehicle itself. However, getting the vehicles fully insured is the most important factor that banks consider before giving vehicle loans.
This document provides an overview of project finance and funding sources for infrastructure projects. It discusses various types of official agencies that can provide financing, including export credit agencies, development banks, and investment banks. Export credit agencies support exports by providing loans, guarantees, and insurance. Development banks focus on financing developmental projects in emerging markets. Private equity firms and infrastructure funds provide equity financing. The document outlines typical project finance structures, processes, timelines and documentation required to obtain funding. Key websites for various official financing institutions are also listed.
This document provides an overview of mortgages and the mortgage market. It begins with definitions of mortgages as long-term loans secured by real estate. It then discusses characteristics of residential mortgages like interest rates, loan terms, and amortization. The document outlines different types of mortgage loans and institutions involved in mortgage lending. It also describes the secondary mortgage market and process of securitizing mortgages into mortgage-backed securities.
This document discusses different types of regulatory credit exposures under the Basel III framework, including debt exposures, securitization exposures, and specialized lending. It provides details on various types of debt exposures such as loans, bonds, credit lines, and credit derivatives. It defines securitization exposures as financial instruments constructed through credit structuring using underlying debt portfolios or combinations of credit default swaps and high quality assets. The document also briefly outlines capital charge calculation requirements for securitization exposures under Basel III.
The document discusses lending opportunities for borrowing against shares and share portfolios. Due to difficult lending conditions from banks, hedge funds have entered the market and are providing loans secured against shares, with loan-to-value ratios of up to 80%. The loans can be used for any purpose and range from £100,000 to £1 billion with fast approval and funding. Borrowers must pledge qualifying shares listed on a major exchange and held free of restrictions in a separate custodial account.
This document summarizes the key aspects of Islamic finance. It discusses the objectives of studying Islamic financial systems and products. The core principles of Islamic finance are outlined, including a prohibition on interest and speculation. Common Islamic finance products are also described, such as Musharakah, Mudaraba, Murabaha, and Salam. The document notes that Islamic finance aims to align financial activities with ethical and social principles based on Sharia law.
This document discusses financial institutions such as bonds, stocks, and retained earnings. It also covers financial intermediaries like banks, mutual funds, and insurance companies. Bonds are obligations issued by corporations that promise fixed interest payments and repayment of principal at maturity. Stocks signify ownership in a corporation and represent a claim on its assets and earnings. Retained earnings are corporate profits used for reinvestment rather than dividends. The document also summarizes the 2008 financial crisis, which was largely driven by excessive debt, lax regulation, risky policies, and in some cases outright fraud related to the mortgage industry.
N1 SME Lending Fund investors performance report v. May2020Ren H Wong
N1 Holdings group of businesses provide strategic advice on businesses, corporations, project developers and property investors seeking new equity capital/debt, refinancing or refinancing existing debt. We assist companies and individuals through the complex processes of Australian major banks, private funds, and offshore debt capital providers. With the growth in alternative lending, N1 overseas strategic alliances are perfectly placed to advise businesses through this changing lending environment and debt market.
Long term loan policy kapol cooperative bankKartikey Jain
The document outlines the long-term loan policy of Kapol Cooperative Bank Ltd. It discusses various types of long-term loans offered by the bank such as housing loans, vehicle loans, educational loans, and loans against shares. Most of the loans have a repayment period exceeding one year and require substantial margin money ranging from 25-50%. The bank provides both secured and unsecured loans for purposes such as home buying, education, and business development. A graphical representation shows that the bank's long-term loans disbursed have increased from 2007 to 2012.
This document provides an overview of the U.S. mortgage market. It discusses that mortgages allow most people to purchase homes by borrowing most of the cost. It then covers various types of residential mortgages, including fixed-rate, adjustable-rate, and other less common varieties. It also examines the institutions involved in originating, servicing, and investing in mortgages. A key topic is the securitization and secondary market for mortgages, where loans are pooled and sold as mortgage-backed securities.
The document discusses lending policies and procedures at banks. It covers types of loans banks make, factors that affect loan mix, regulation of lending, creating a written loan policy, the lending process, and reviewing and working out problem loans. Key points include the need for written lending policies, regulatory oversight of lending, and processes for evaluating loans, identifying problems, and resolving troubled loans.
Chapter18 International Finance ManagementPiyush Gaur
Dorchester Ltd is considering building a new manufacturing plant in the US to expand its candy production and sales in North America. The initial cost of the plant would be $7 million. Local debt financing of $1.5 million at 7.75% interest would be provided. Dorchester must decide whether to issue additional debt in pounds sterling at 10.75% or US dollars at 9.5%.
Building the new plant would allow Dorchester to serve the entire North American market and realize higher profits of $4.40 per pound sold. However, the analysis of costs, revenues, tax rates, debt financing, and exchange rates is complex given the international dimensions. A full capital budgeting analysis is required to
Presentation for the International Working Group on Export Finance, chaired by the European Commission in Brussels, by Ralph Lerch, Chair of the Export Credit Working Group of the European Banking Federation.
This was the first occasion on which the EBF had been invited to speak in this forum. The EBF’s intervention reported from the commercial banking sphere on export credit conditions.
The IWG originated in a meeting between President Barack Obama and China’s then Vice-President Xi Jinping, in February 2012. They agreed to create an international working group among major providers of government-backed loan guarantees, which would discuss guidelines for export credit financing. The initiative was confirmed at the Sino-US Strategic and Economic Dialogue on 3-4 May 2012.
This multilateral process brings together the Participants to the OECD Arrangement (the existing framework for government-supported export credit) and other major export credit providers including China, Brazil, the Russian Federation, Turkey, Malaysia and Israel. For the European Commission, the forum represents a new challenge in its “outreach activities”, aimed at engaging new international players in the export credit activity in international disciplines on export credits.
Secured Loan Vs. Unsecured Loan - Which One Is Better For You?Hero FinCorp
Secured loans are secured by an asset pledged as collateral. Unsecured loans are the ones which don't require any collateral. Both have their merits and demerits. Here we take you through their various facets to help you choose the one more suitable for your needs.
Learn why Commercial Real Estate Debt is the perfect partner for Peer-to-Peer Lending. Placing the words “commercial property” in front of p2p lending is not something you should fret about. In fact, greater capital protection from the property and longer tenancies make Commercial Property P2P Lending one of the most secure forms of p2p lending, plus it offers favourable returns of 5-12% pa (after fees, but before bad debts and taxes).
This short guide provides you with an introduction to how you can earn attractive returns of between 5-12% pa* by investing in Peer-to-Peer Loans secured against UK income producing Commercial Property.
*After fees, but before bad debts & taxes. Capital at risk
Are you baffled by jargon when it comes to investing? At Huddle we want to educate everyone about peer to peer lending, and help you get to grips with the concepts behind crowdfunding so that you can make more informed choices about money matters. Follow our blog at www.huddlecapital.com for more educational content.
The Strategic Asset Fund is managed by ELP Capital Advisors and aims to provide consistent long-term returns of 12% annually through short-term, senior real estate loans. ELP evaluates borrowers based on their character, capacity, capability and collateral to ensure they can repay the loan. This focus on qualitative factors differentiates ELP from other hard money lenders. The current economic environment with reduced traditional lending presents opportunities for ELP to finance quality real estate projects and generate high returns for investors with relative safety of principal.
The document discusses the bankruptcy of Energy Future Holdings, which underwent the largest leveraged buyout in history. It accumulated $40 billion in debt and has now filed for bankruptcy. There is currently a legal dispute over where the bankruptcy proceedings will take place. The bankruptcy could help clarify fraudulent transfer law, as creditors may argue the leveraged buyout constituted a fraudulent transfer. Leveraged buyouts involve taking on substantial debt, making the acquiring company vulnerable if it cannot service the debt. Careful target selection is important to mitigate bankruptcy risk.
Vehicle loans are given for both used as well as own vehicles. However, if the loan is being taken for used vehicle then it is mandatory that it is not more than five years old. Although some banks provide 100% finance, however financing 80% of the vehicle value is usually the norm. The main security for this type of loan is the vehicle itself. However, getting the vehicles fully insured is the most important factor that banks consider before giving vehicle loans.
This document provides an overview of project finance and funding sources for infrastructure projects. It discusses various types of official agencies that can provide financing, including export credit agencies, development banks, and investment banks. Export credit agencies support exports by providing loans, guarantees, and insurance. Development banks focus on financing developmental projects in emerging markets. Private equity firms and infrastructure funds provide equity financing. The document outlines typical project finance structures, processes, timelines and documentation required to obtain funding. Key websites for various official financing institutions are also listed.
This document provides an overview of mortgages and the mortgage market. It begins with definitions of mortgages as long-term loans secured by real estate. It then discusses characteristics of residential mortgages like interest rates, loan terms, and amortization. The document outlines different types of mortgage loans and institutions involved in mortgage lending. It also describes the secondary mortgage market and process of securitizing mortgages into mortgage-backed securities.
This document discusses different types of regulatory credit exposures under the Basel III framework, including debt exposures, securitization exposures, and specialized lending. It provides details on various types of debt exposures such as loans, bonds, credit lines, and credit derivatives. It defines securitization exposures as financial instruments constructed through credit structuring using underlying debt portfolios or combinations of credit default swaps and high quality assets. The document also briefly outlines capital charge calculation requirements for securitization exposures under Basel III.
The document discusses lending opportunities for borrowing against shares and share portfolios. Due to difficult lending conditions from banks, hedge funds have entered the market and are providing loans secured against shares, with loan-to-value ratios of up to 80%. The loans can be used for any purpose and range from £100,000 to £1 billion with fast approval and funding. Borrowers must pledge qualifying shares listed on a major exchange and held free of restrictions in a separate custodial account.
This document summarizes the key aspects of Islamic finance. It discusses the objectives of studying Islamic financial systems and products. The core principles of Islamic finance are outlined, including a prohibition on interest and speculation. Common Islamic finance products are also described, such as Musharakah, Mudaraba, Murabaha, and Salam. The document notes that Islamic finance aims to align financial activities with ethical and social principles based on Sharia law.
This document discusses financial institutions such as bonds, stocks, and retained earnings. It also covers financial intermediaries like banks, mutual funds, and insurance companies. Bonds are obligations issued by corporations that promise fixed interest payments and repayment of principal at maturity. Stocks signify ownership in a corporation and represent a claim on its assets and earnings. Retained earnings are corporate profits used for reinvestment rather than dividends. The document also summarizes the 2008 financial crisis, which was largely driven by excessive debt, lax regulation, risky policies, and in some cases outright fraud related to the mortgage industry.
N1 SME Lending Fund investors performance report v. May2020Ren H Wong
N1 Holdings group of businesses provide strategic advice on businesses, corporations, project developers and property investors seeking new equity capital/debt, refinancing or refinancing existing debt. We assist companies and individuals through the complex processes of Australian major banks, private funds, and offshore debt capital providers. With the growth in alternative lending, N1 overseas strategic alliances are perfectly placed to advise businesses through this changing lending environment and debt market.
Long term loan policy kapol cooperative bankKartikey Jain
The document outlines the long-term loan policy of Kapol Cooperative Bank Ltd. It discusses various types of long-term loans offered by the bank such as housing loans, vehicle loans, educational loans, and loans against shares. Most of the loans have a repayment period exceeding one year and require substantial margin money ranging from 25-50%. The bank provides both secured and unsecured loans for purposes such as home buying, education, and business development. A graphical representation shows that the bank's long-term loans disbursed have increased from 2007 to 2012.
This document provides an overview of the U.S. mortgage market. It discusses that mortgages allow most people to purchase homes by borrowing most of the cost. It then covers various types of residential mortgages, including fixed-rate, adjustable-rate, and other less common varieties. It also examines the institutions involved in originating, servicing, and investing in mortgages. A key topic is the securitization and secondary market for mortgages, where loans are pooled and sold as mortgage-backed securities.
The document discusses lending policies and procedures at banks. It covers types of loans banks make, factors that affect loan mix, regulation of lending, creating a written loan policy, the lending process, and reviewing and working out problem loans. Key points include the need for written lending policies, regulatory oversight of lending, and processes for evaluating loans, identifying problems, and resolving troubled loans.
Chapter18 International Finance ManagementPiyush Gaur
Dorchester Ltd is considering building a new manufacturing plant in the US to expand its candy production and sales in North America. The initial cost of the plant would be $7 million. Local debt financing of $1.5 million at 7.75% interest would be provided. Dorchester must decide whether to issue additional debt in pounds sterling at 10.75% or US dollars at 9.5%.
Building the new plant would allow Dorchester to serve the entire North American market and realize higher profits of $4.40 per pound sold. However, the analysis of costs, revenues, tax rates, debt financing, and exchange rates is complex given the international dimensions. A full capital budgeting analysis is required to
Presentation for the International Working Group on Export Finance, chaired by the European Commission in Brussels, by Ralph Lerch, Chair of the Export Credit Working Group of the European Banking Federation.
This was the first occasion on which the EBF had been invited to speak in this forum. The EBF’s intervention reported from the commercial banking sphere on export credit conditions.
The IWG originated in a meeting between President Barack Obama and China’s then Vice-President Xi Jinping, in February 2012. They agreed to create an international working group among major providers of government-backed loan guarantees, which would discuss guidelines for export credit financing. The initiative was confirmed at the Sino-US Strategic and Economic Dialogue on 3-4 May 2012.
This multilateral process brings together the Participants to the OECD Arrangement (the existing framework for government-supported export credit) and other major export credit providers including China, Brazil, the Russian Federation, Turkey, Malaysia and Israel. For the European Commission, the forum represents a new challenge in its “outreach activities”, aimed at engaging new international players in the export credit activity in international disciplines on export credits.
Secured Loan Vs. Unsecured Loan - Which One Is Better For You?Hero FinCorp
Secured loans are secured by an asset pledged as collateral. Unsecured loans are the ones which don't require any collateral. Both have their merits and demerits. Here we take you through their various facets to help you choose the one more suitable for your needs.
Learn why Commercial Real Estate Debt is the perfect partner for Peer-to-Peer Lending. Placing the words “commercial property” in front of p2p lending is not something you should fret about. In fact, greater capital protection from the property and longer tenancies make Commercial Property P2P Lending one of the most secure forms of p2p lending, plus it offers favourable returns of 5-12% pa (after fees, but before bad debts and taxes).
This short guide provides you with an introduction to how you can earn attractive returns of between 5-12% pa* by investing in Peer-to-Peer Loans secured against UK income producing Commercial Property.
*After fees, but before bad debts & taxes. Capital at risk
Are you baffled by jargon when it comes to investing? At Huddle we want to educate everyone about peer to peer lending, and help you get to grips with the concepts behind crowdfunding so that you can make more informed choices about money matters. Follow our blog at www.huddlecapital.com for more educational content.
Senior Commercial Real Estate Debt_Jan 2016Dharmy Rai
This document provides an overview and analysis of the senior commercial real estate debt market. It discusses the market opportunity created by banks reducing lending following Basel III regulations. Commercial real estate debt provides diversification benefits and attractive risk-adjusted returns. The document examines the commercial real estate debt asset class, major geographies including the UK market, and recommendations for investing in this space.
The document presents an investment thesis for establishing a fund that will build and manage a diversified portfolio of peer-to-peer (P2P) loans. It discusses the emergence and growth of P2P lending, provides an overview of the major P2P lending platforms and their business models, examines the market growth potential for P2P lending in the UK and US, models expected returns from investing in P2P loans, reviews key risks, and concludes there is significant opportunity to create a P2P lending fund that can achieve £1 billion in assets under management by 2020.
This document provides a summary of topics covered in Voltaire Financial's inaugural half-yearly bulletin, including:
- An overview of the changing residential development finance market, noting a shift away from large banks toward newer lenders like debt funds and peer-to-peer lenders.
- A guest article on rights of light and legal issues that can arise from infringing on these rights during redevelopment projects.
- Brief updates on taxation of annual tax on enveloped dwellings and trends in bridging loans.
- Case studies of recent projects completed by Voltaire Financial.
The document discusses trends in residential development lending, including less interest in super-prime projects, openness
Peer to peer lending accounts, managed for clients according to their individual needs. Professional investment management from a team of dedicated credit specialists.
This document discusses various types of bank financing including short term, medium term, and long term financing. It provides details on the key elements that banks look for when approving financing requests. The different types of financing are used to fund different time periods, from less than one year for short term financing, 1-7 years for medium term, and 15-20 years for long term financing. The document also outlines the sources, advantages, disadvantages and purposes of each type of financing.
The Bribery Act 2010 introduced stricter legislation around bribery and corruption in the UK. It created general bribery offences as well as a new "failure to prevent bribery" offence applied to commercial organizations. An example case discusses IKEA executives accepting bribes from a supplier to ensure certain orders. Under the new Act, both the supplier and executives would be liable, and IKEA could potentially be liable for failing to prevent bribery. Key issues with the legislation include its broad jurisdictional reach and director/officer liability. The Serious Fraud Office has provided guidance emphasizing enforcement of the Act while working pragmatically with businesses.
Properity is an online lending platform that connects property developers in the UK with individual and corporate lenders. Lenders can earn interest rates of up to 12% annually by providing secured loans to developers. Properity manages the loan process and ensures security for lenders through measures like borrower risk assessments, legal documentation, and property valuations. While lending through Properity offers higher returns than many investments, lenders' capital is still at risk given loans are secured by property developments.
ExtraFunds is a proven servicer in the short-term online lending marketplace. ExtraFunds is currently seeking to expand its operations by raising capital via Crowdfunder. For more details about the offering, visit www.crowdfunder.com/extrafunds.
The Essex, Bexleyheath & Erith Mixed Use Loan was drawn down by the borrower in May 2015. The £978,000 loan represented a 75% Loan-to-Value (LTV) and was secured with a first legal charge over the properties.
The Loan remains in Active Good Standing, with no late or missed payments and 12 months left on the loan term.
Download the Case Study to learn more about this Loan Investment and to review the performance to date.
The document summarizes several lending programs offered by the Federal Reserve Bank of San Francisco, including the Primary Credit program, Borrower-In-Custody (BIC) program, and Seasonal Credit program. The Primary Credit program provides short-term funding to depository institutions. The BIC program allows institutions to pledge loans as collateral for discount window advances. The Seasonal Credit program provides lines of credit for institutions that experience seasonal fluctuations in deposits and loans.
Purchase Order Finance (BUSINESS BORROWING BASICS 2018)Financial Poise
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/purchase-order-finance/
Purchase-order financing (P/O financing) is designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the for the cost of producing a customer’s order. P/O financing enables such company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan. This webinar explains when P/O financing may make sense for a company; some of the more common terms and conditions of such financing; how to negotiate those terms; how it co-exists with other forms of financing and potential alternatives.
ThinCats is an online marketplace that enables experienced investors to provide secured loans directly to UK businesses, bypassing banks. It facilitates loans between £50,000-£1M at interest rates of 8-11% by bringing together lenders and borrowers. Lenders can view business information packs, participate in auctions to join syndicates and earn steady, predictable returns. ThinCats thoroughly vets businesses and only lists those that can demonstrate an ability to repay loans and provide security, minimizing risk for lenders.
The document describes a collateral loan program that provides loans of $10 million or more, backed by collateral from a third party rather than the client. Key aspects include:
- Loans can be used for any project type worldwide and are paid back over 10 years with no prepayment penalty. Interest rates are variable between 0-3% plus Libor (around 6.5% on average).
- The program offers a 1-3 year deferral period where the borrower does not have to pay interest or make minimum payments, even if the project could repay the loan earlier.
- It involves multiple participants including the client, collateral provider, depositor who provides the collateral, purchaser who buys the interest in the
Surety Industry Overview: State of the Industry by Cissie ScogginDon Grauel
Cissie Scoggin of Liberty Mutual Insurance presented "Surety Industry Overview: State of the Industry" to the 68th Annual F. Addison Fowler Fall Seminar on October 17, 2014.
Similar to Commercial Property Peer-to-Peer Lending (20)
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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Commercial Property Peer-to-Peer Lending
1. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
Peer-to-Peer Commercial
Property Lending
Why Commercial Real Estate Debt is the Perfect Partner for P2P
Lending
Retail Office Industrial
2. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
INTRODUCTION
1
Peer-to-Peer Lending, also known as Loan Based Crowdfunding, is the process of
connecting investors directly to borrowers, circumventing traditional banks and financial
institutions. This new asset class offers diversification and attractive yields to investors,
especially in this current long-term low interest rate environment.
Peer-to-Peer Lending (P2P Lending) has undoubtedly revolutionised the traditional
banking and lending industries. The introduction of new technology and the ability to
draw and process information quickly has left the traditional finance sector napping.
At Proplend, we continuously apply the latest technologies adopting them alongside
traditional lending models to ensure our offering is as efficient, transparent and inclusive
as possible.
The number of P2P Lending platforms continues to rise and choosing which one(s) to
invest through can be a difficult task.
Why is commercial real estate debt the perfect partner for P2P lending?
It provides a well documented income stream plus downside capital protection from the
security.
What will your investment be secured by? A income producing commercial property with
a Tenant on a FRI (Full Repairing and Insuring) Lease.
How will you be paid monthly interest? Rental Income from the Property.
How will your investment be repaid at the end of the term of the loan? A property
can be sold or refinanced.
It’s simple. Commercial Property Peer-to-Peer Lending platforms are potentially one of
the safest and should not to be ignored.
3. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
Commercial Real Estate Debt (CRE Debt) has a long history as an investment category in
institutional investors portfolios, but in the UK, CRE Finance has been predominantly
offered to borrowers by commercial Banks who retained it on their balance sheets.
At its simplest, CRE Debt is an investment secured on commercial property, comprising an
agreement between the borrower and the lender, in which the borrower makes periodic
payments to the lender and then repays the loan in full at the contractual maturity.
Since the financial crisis, banks, for a variety of reasons (regulation affecting capital ratio
requirements, leverage ratio limitations & legacy asset concentration) have vacated the
market they used to dominate. Most notably in the sub £5m commercial investment loan
sector.
This has left many credit-worthy, successful Borrowers struggling to find suitable sources of
capital to refinance existing loans, which is where P2P Property lending has found its
niche market.
CRE DEBT
2
4. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
There is approximately £200 billion of outstanding CRE debt in the UK. 25% of which is in
the sub £5m sector and requires refinancing within the next 2-5 years.
Lending for commercial property, in the UK, has traditionally been dominated by banks,
which accounted for c.90% of the market. At the height of the market, in the run up to
2007, there were 55-60 banks, building societies and financial institutions actively servicing
this market. Today there are only around 10 - 12. There is a clear dislocation in the supply
and demand of funding available and required.
Following the financial crisis, banks have increasingly withdrawn from commercial lending
due to several factors:
• Stricter capital requirements
• Deleveraging of balance sheets
• Higher funding costs
The effect of this funding shortfall is an increase in the premiums that commercial
property owners are prepared to pay for commercial property loans, which leads to an
opportunity for cash rich, income-starved investors.
By effectively crowdfunding the commercial property loan requirement, borrowers gain
access to funding otherwise not currently available, and investors gain access to low risk,
fixed income producing opportunities.
3
The Marketplace
5. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
The main benefit of P2P lending against CRE Debt is security.
Unlike Consumer or SME Lending, every CRE loan is supported by a 1st legal charge over
an income producing commercial property. The value of the property (which is
determined by a professional, independent valuation) is higher than the loan amount,
and the net rental income generated by the property is greater than the debt service
requirement.
Tenants in a commercial property sign up to a FRI Lease which can last from between 3
to 25 years. This provides a well documented cash flow showing the level of rent being
paid, how frequently it is being paid, how long it will be paid for, when and how much
the rental uplifts will be and when there are any breaks, either from the tenant or the
landlord.
When comparing CRE P2P Lending to traditional investments or other P2P categories we
find that CRE P2P Lending offers:
• Fixed income returns that exceed quality corporate bonds
• Better capital protection than equity and corporate bonds
• Lower volatility than equity and balanced property
• A clear legal framework in the UK offers a low probability of default along with
high recovery rates
• Diversification away from traditional asset classes
• Better risk adjusted returns than offered by consumer and SME lending platforms
Benefits
4
6. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
At Proplend, we believe CRE debt is the perfect partner for P2P lending. It has
allowed us to offer our investors the opportunity to construct a loan portfolio based
around their specific investment parameters, such as:
1. Investment return
2. Loan term
3. Investment amount (subject to min £5,000)
4. Asset type (office, retail, industrial, leisure, residential)
5. Geographic location (city, regional, primary or secondary)
6. Tenant type (multi / single)
With the introduction of the Proplend Loan Tranche, investors with differing risk
parameters and return requirements are given the opportunity to invest in the same
loan alongside one another. The Proplend Loan Tranche splits the Loan in up to three
Loan-to-Value (LTV) based tranches.
In developing this model, Proplend believes that our Tranche A investment level is
one of the safest P2P loan investments on the market, with 200% capital protection
(via the 1st legal charge) plus 6 months of retained interest.
The Tranche Effect
5
The Proplend Loan Tranche
A £1m property is financed by a £750,000 loan
at an interest rate of 6.5% p.a.
The Loan requirement is split across the fixed
loan to value based tranches. The 6.5% rate
paid by the borrower is split across the three
tranches with Tranche C paying the most and
Tranche A the least interest, investors get to
choose which tranche they wish to invest into.
Tranche C offers 133% capital protection, the
property would have to fall in value by 25%
before the investor’s investment is at risk.
Tranche A offers 200% capital protection, the
property would have to fall in value by over 50%
before the investors investment is at risk.
The higher up the tranche or LTV the investor
lender the greater the risk but the greater the
return.
By investing into Tranche A, Proplend believes
that we have created the safest P2P loan
investment on a risk adjusted return basis.
Excellent capital protection plus an attractive
return on capital.
7. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
CRE debt is not immune to market value declines, which could alter investment returns.
However, the ability of commercial property debt to absorb significant property market
volatility helps make this a stable, predictable and attractive investment class.
All investments come with risks, but having the security of a 1st legal charge over the
property in addition to a rental income stream helps make CRE lending an attractive and
sustainable P2P loan investment.
Risks
6
How Proplend Mitigates Risk
Fall in property income
• Loan amounts and terms will be determined by the quality of the tenants and
occupancy terms, with resulting income protection features such as lower initial loan
amounts and interest cover covenants.
• Proplend retains 6 months worth of interest to cover vacancies or borrower default.
Fall in property value
• In a 75% LTV loan, investors in Tranche C have a minimum cushion of a 25% fall in
property value. Tranches A and B offer a greater cushion.
• Post crisis drops in property values of 30-40%, without a full recovery, make a further
significant drop less likely.
• Significant drops in value increase the percentage of income relative to value, this then
provides attractive yield returns for distressed asset managers.
Lack of suitable investment opportunities
• Given the size of the outstanding funding gap, especially in the sub £5m loan sector
and the lack of market participants, investors should be able to benefit from current
market conditions.
Illiquidity
• Investors should expect that any loan they enter into will remain outstanding for the
term of that loan.
• Investors are being paid a illiquidity premium.
• The Proplend Loan Exchange offers a secondary market for investors who wish to sell a
loan part prior to the end of the loan term. It cannot, however, guarantee a buyer for
that loan part will be found or the price that the loan part may sell for.
Prepayment
• Loan terms will include prepayment protection in the form of penalties, these will be
agreed on a loan by loan basis and be transparent to investors.
Loan default
• In the case of a Loan default, Proplend Security Limited, who enters into the Security
Documentation with the Borrower, will commence recovery of the debt due under that
Security package.
8. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
The UK remains an attractive investment destination, with a high and stable commercial
real estate risk-return profile, aided by a liquid, transparent marketplace, a creditor-
friendly jurisdiction, and a well understood legal framework.
Asset prices are at sustainable levels and broad market return forecasts are favourable.
CRE Peer-to-Peer Lending provides a strategic opportunity for a medium term
investment, and offers diversification benefits for a traditional investors portfolio.
Proplend’s mission is to open up the institutional asset class of commercial real estate
loan syndication for the sub-£5m loan sector directly to a wider range of investors in a
simple and transparent way.
Brian Bartaby
Founder & CEO Proplend Ltd
Summary
7
9. For more information please call +44 (0)203 397 8290, email us at admin@proplend.com or visit www.proplend.com
8
Contact
Contact Details:
Email:
admin@proplend.com
Office:
+44 (0) 203 397 8290
Website:
www.proplend.com
Twitter:
@Proplend
Resources: Savills Property Finance Report 2014
DISCLAIMER
Proplend operates a peer to peer lending platform specialising in commercial property loans
supported by first charge mortgages. Whilst loan investments are secured against property,
capital is still at risk and therefore Proplend lenders face the possibility of losing money.
Investments in commercial loans are long term in nature and may not readily be realisable.
Proplend Ltd is incorporated in England and Wales registered number 08315922, registered
address 145-157 St John Street, London EC1V 4PW. Proplend Ltd is authorised and regulated by
the Financial Conduct Authority (firm registration no. 662661). Lenders on Proplend and other P2P
platforms are not covered by the Financial Service Compensation Scheme.
If you are in any doubt as to whether lending on Proplend is suitable for you, we recommend that
you seek independent financial advice.