Our aim is to allow investors the opportunity to participate in the above average returns associated with alternative finance and sub-prime lending. We say "sub-prime" because many of our borrowers come to us when they can't get finance from elsewhere: they may have a bad credit score, or an outstanding county court judgement, or previously been declared bankrupt. So long as the collateral on which the loan is secured is sufficient to cover the loan, and there is a convincing reason why the borrower is in the position they are, we will offer the loan to our investors.
All loans are posted on our platform for funding with details of the security. Interest rates vary, depending on the risk of each loan. Most offer 12-13% per annum. However, those with a low risk may pay as little as 10% whereas we may go up to 15% for riskier or more complex loans. Bonus rates are often available for larger single investments in a loan (usually in excess of £10,000).
The loan period is always 6 months. However, the borrower may repay early - in which case investors are paid up to the date of repayment. Once the loan is repaid, interest and capital are returned to the investor’s account, and can then be withdrawn or reinvested. If the borrower decides to renew by paying interest, investors can choose to rollover their investment into the renewal.
No investment is without risk. However, FundingSecure manages this by restricting the loan to value (LTV) to 70%. We do not use the borrowers' credit scores as part of our lending criteria, as we rely on the underlying asset as security. We do, however, perform background checks on our borrowers and rigorous due diligence on ownership and title. In the event of a default, for pawn loans we sell the asset at auction, and for bridging loans we appoint a receiver. Interest continues to accrue until the asset is sold.
Despite these measures, your capital does remain at risk. Also please note that your investment is not protected by the Financial Services Compensation Scheme. Investors should always review each loan carefully and decide on whether the risk vs reward proposition is acceptable to them.
Please note: Your capital is at risk if a loan defaults.
If you want to sell off your investment before the end of the loan term, we have a secondary market within the investors' section where our members can buy and sell investments.
Once you have registered and are investing, we have bonuses available for referring other investors to the site.
The FundingSecure Innovative Finance ISA is now available and gives you tax-free interest.
Click here, to view more loan statistics.
If FundingSecure enters into financial difficulties, it will initiate a wind-down plan whereby no new loans or investors would be taken on and the loan book would be run-down. We have worked with the FCA to develop this plan, as well as the financial indicators that would cause us to initiate the plan. This is all designed to ensure a smooth and timely wind-down of the business if required.
In the unlikely event that FundingSecure enters administration as a result of extreme financial circumstances, capital and accrued interest on all loans would be “ring-fenced” and, therefore, cannot be used by the administrators to settle any debts due by FundingSecure. The administrators would have to rely on the administration fees coming at the end of the loan period to settle all debts, continuing to repay capital and interest to investors in accordance with the terms and conditions.
Unfortunately your investment is not covered by the Financial Services Compensation Scheme.
Any interest and Capital Gains you receive on your investments are not taxed. It is your responsibility to declare any earnings made from interest and Capital Gains to HMRC on a self-assessment tax return. When you are logged in, this can be found by clicking on “Tax Statement” and then selecting the relevant tax year. You can download the selected tax statement from here.
If you have an IFISA account, then any interest earned is tax-free and will not show on your tax statement on your main account. For more information regarding IFISAs, please click here.
Registering online is quick and easy. To access our members' section, you don't need to enter any bank details or deposit any money.
Company Number: 8120200 / Authorised and Regulated by the Financial Conduct Authority
(Reference number 698305)