8% fixed rate 3 years? Is this real?

geraint85

Does Anyone know anything about London Capital & Finance (LCF).
The Fixed rate on 3 year bonds seem to be 8% with no maximum limit, which seems to good to be true. I've tried emailing them, but have had no reply.
Any thoughts on what the risks are here?


"What are the returns?

The returns are a fixed rate of 3.9%, 6.5% and 8.0% per annum for the 1, 2 and 3 year bonds respectively as outlined in the brochure and Information Memorandum. "

"How is my money protected?

Bond Holder funds are protected to 100% of their value and an independent Security Trustee holds the security on behalf of the investor.

London Capital and Finance plc are a successful corporate lending company, they lend money to companies who have undergone a strict due diligence process and can provide adequate security for the loan.

What is adequate security? When funds are lent out, a charge over either property or other assets of the Borrowing Company is taken at no more than 75% loan to value. So, for example: with a loan of £750,000, the value of the charged assets of the Borrowing Company would need to be at least £1 million.

As an investor you would have a charge over the assets by way of a legal vehicle known as a debenture. This means that all investors will have a charge over the secured assets which include the cash reserves in the business and the security taken from borrowing companies."

chris_m

https://forums.moneysavingexpert.com/discussion/5346049

bigfreddiel

chris_m wrote: »

https://forums.moneysavingexpert.com/discussion/5346049

This looks great, I think everyone should pile in while they can

fj

talexuser

Obviously a company that does not respond to your inquiries are well worth investing in.

Pincher

If you want 8% return, check out Shell.


At the new low of £14.69 a share, IF they pay dividend at 114.16p a share, like last year, it's


7.77% = 114.16 / 1469.


Which is more likely to fold on you? LCF or RDSB?

tmsbry

Pincher wrote: »

If you want 8% return, check out Shell.


At the new low of £14.69 a share, IF they pay dividend at 114.16p a share, like last year, it's


7.77% = 114.16 / 1469.


Which is more likely to fold on you? LCF or RDSB?

I can see Shell lowering the dividend & who knows where oil will be in 3 years time

Dan83

Wellesley & co are offering 3.3 - 3.35% (variable) on 30 day bonds with a max of £25000.

Example
1000 @ 3.3% = £33 X 12 = £396

I'm not math expert but I'm guessing that's about 39.6%.

The draw back is that it's peer to peer lending, i've had £5k in the company for quite a while and I've not lost money. That doesn't mean I won't or anyone else won't.

Pincher

tmsbry wrote: »

I can see Shell lowering the dividend & who knows where oil will be in 3 years time

There is every chance of lower dividends in 2016, but that's the risk of chasing above average return. There's a difference between Vegas and going down a dark alley to a Speakeasy, that's all.

Keep_pedalling

Dan83 wrote: »

Wellesley & co are offering 3.3 - 3.35% (variable) on 30 day bonds with a max of £25000.

Example
1000 @ 3.3% = £33 X 12 = £396

I'm not math expert but I'm guessing that's about 39.6%.

3.3% is the annual interest rate.

tmsbry

Pincher wrote: »

There is every chance of lower dividends in 2016, but that's the risk of chasing above average return. There's a difference between Vegas and going down a dark alley to a Speakeasy, that's all.

Oh I agree, I had BP but decided to sell due to the possibility of another lawsuit regarding the Deepwater Horizon spill.

I just think Oil companies are too risky & volatile in today's environment. Good for Airlines shares though,

colsten

Pincher wrote: »

If you want 8% return, check out Shell.

Yeah, brilliant idea to buy shares in a company that might have to pay out hundreds of millions in fines. And to pin your hopes on an industry whose product price keeps collapsing.

http://www.aljazeera.com/news/2015/12/dutch-court-shell-liable-nigeria-spills-151218120516428.html