London Capital

dont_use_vistaprint · 20 December 2017 at 2:19PM

Whats peoples thoughts on this, not linked to markets & 'guaranteed' 8% they say the capital is secured as follows:

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 London Capital & Finance Plc and the security taken from borrowing companies.

I was wondering what a typical business loan interest rate is for £100K , I would think well below 8% - does this suggest they are lending to higher risk companies like start-ups ? But they they say the companies have assets equal to the loan value... but then why would they borrow at > 8%

ColdIron · 20 December 2017 at 2:22PM

London Capital and Finance comes up regularly. Use the search funcion or read their disclaimer on their web site (my emphasis)

https://www.londoncapitalandfinance.co.uk/disclaimer

LC&F is authorised and regulated by the Financial Conduct Authority, FRN 722603. It should be noted that the bonds offered by LC&F are repaid via loans made to companies and therefore your capital is at risk. Interest payments are not guaranteed if the borrower defaults

Investing in the Bonds carries significant risk and you may lose part or all of your investment

The protections afforded by the Financial Services and Markets Act 2000 including recourse to the Financial Ombudsman Service and compensation entitlements under the Financial Services Compensation Scheme do not apply to the bonds offered

Zoea · 20 December 2017 at 2:24PM

There's another company that I know that does something similar (I won't name them since they are overseas and not very well established / reputationed yet but you can always PM me) yes they lend to medium high risk organisations but the loans are all secured and they are able to offer 12-14%. They provide a "guarantee" but it isn't any kind of legal vehicle it's just text on a website as far as I can tell.

Plenty of people around the world are borrowing for business at well over 8%. Why ? - I have no idea must be a markets thing. This is interesting thanks for posting let us know if you go through with an investment and how it goes please.

I'm very new at this and not experienced so I'll just throw that in there. Best to be careful out here.

dont_use_vistaprint · 20 December 2017 at 2:40PM

Thanks Guys. Quick search at the threads here suggest people maybe confuse them with savings/ISA's. I like the idea of using capital to support business loans, especially if the businesses have assets, but guess Id like to know more about the types of businesses and why they borrow this way, certainly wouldn't want to invest in a b2b payday loan type thing...

jimjames · 20 December 2017 at 6:23PM

If you're prepared to risk all your capital why would you not invest in a standard S&S ISA or have you used your allowance up?

dont_use_vistaprint · 21 December 2017 at 9:54AM

Because S&S are linked to markets, and markets a little flat last few months. It looks like P2P but higher interest and less info on the companies borrowing. Maybe this area will change a bit when IFISA is rolled out properly.

Update - Just spoken to them, all UK established companies, no startups, corporate funding to established businesses, minimum loan value 0.5m

aberlyfid_2000 · 24 December 2017 at 4:40PM

with a bit of work, it is possible to find loans to appropriate ventures for circa 8%, but this is the domain of banks and specialist investors, and would certainly require taking on high yield/speculative risk. The interest figure would indicate that the companies are currently "borderline" going concerns, and i would require that the loans are covered at least 120% by assets.

jimjames · 24 December 2017 at 5:48PM

dont_use_vistaprint wrote: »

Because S&S are linked to markets, and markets a little flat last few months.

If you're looking at periods of a few months then yes a S&S ISA isn't for you but I thought the L&C was tied up for a fair period anyway? With a S&S ISA invested in mainstream funds then there is no chance of losing all your money, you could lose everything you invest with an unregulated investment like L&C

dont_use_vistaprint · 1 March 2018 at 8:45PM

jimjames wrote: »

If you're looking at periods of a few months then yes a S&S ISA isn't for you but I thought the L&C was tied up for a fair period anyway? With a S&S ISA invested in mainstream funds then there is no chance of losing all your money, you could lose everything you invest with an unregulated investment like L&C

Thanks.

I'm looking 2-3 years, p2p loans seems to be the right solution. I have a S&S ISA with Vanguard, its made 76p this year :-) Fingers crossed for tomorrow, my premium bonds might outperform my stocks.:rotfl:

dunstonh · 1 March 2018 at 9:41PM

dont_use_vistaprint wrote: »

Thanks.

I'm looking 2-3 years, p2p loans seems to be the right solution. I have a S&S ISA with Vanguard, its made 76p this year :-) Fingers crossed for tomorrow, my premium bonds might outperform my stocks.:rotfl:

Given your comment here and your other thread, you clearly have a lack of understanding of pretty much everything you are putting your money into. How about you learn about these things?

ValiantSon · 1 March 2018 at 11:15PM

Zoea wrote: »

There's another company that I know that does something similar (I won't name them since they are overseas and not very well established / reputationed yet but you can always PM me) yes they lend to medium high risk organisations but the loans are all secured and they are able to offer 12-14%. They provide a "guarantee" but it isn't any kind of legal vehicle it's just text on a website as far as I can tell.

Plenty of people around the world are borrowing for business at well over 8%. Why ? - I have no idea must be a markets thing. This is interesting thanks for posting let us know if you go through with an investment and how it goes please.

I'm very new at this and not experienced so I'll just throw that in there. Best to be careful out here.

Everything in your post screams, "Get out now!". You admit to not really knowing much about what you are investing in; that the company you are investing in is not regulated by the FCA; the secured nature of the loans does not mean that they can recover all of your money if there is a default; and you acknowledge that their "guarantee" is worth nothing. Why are you even considering giving any of these people your money?

I've said it before, please avoid the get rich schemes and the too good to be true: you won't and they are.

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