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  • FIRST POST
    • daniel80
    • By daniel80 22nd Oct 15, 6:31 PM
    • 230Posts
    • 48Thanks
    daniel80
    London Capital and Finance
    • #1
    • 22nd Oct 15, 6:31 PM
    London Capital and Finance 22nd Oct 15 at 6:31 PM
    Anyone had any dealing with this company. My son has 25k to invest for only 2 years as it will be a house deposit. Iv`e told him to stay away from the stock market as 2 years is not long enough. As he is not overly keen with saving accounts cash isa`s etc due to low interest rates I said what about premium bonds a gamble on winning but stake is safe only loss would be inflation. When I googled investment ideas a link came up who were called specialist investment ideas with free advice. I put in my details..I received a call about half an hour later the guy recommended the above company which was based in Mayfair. he sounded very posh. He said London Capital and Finance were offering bonds paying 8% the money being lent to various companies to a maximum of 60% of their assist. He seems more of a salesman than an advisor and wants to phone back Monday. Brochure looks ok online but something does not seem right. Anyone dealt with these.

    MSE Insert

    Check out our Where to Start Saving guide for help.
    Last edited by MSE Andrea; 01-09-2016 at 2:14 PM.
Page 12
    • dunstonh
    • By dunstonh 6th Mar 18, 8:48 PM
    • 92,580 Posts
    • 59,889 Thanks
    dunstonh
    And in more news..... NOTHING HAS CHANGED.

    It is still a high risk, unregulated, with the potential of 100% loss of capital direct investment that has no FSCS protection and is not meant to be marketed to the average consumer. IT IS NOT A SAVINGS ACCOUNT.

    One line (maybe two on small monitors!). That is all it takes.
    Last edited by dunstonh; 06-03-2018 at 9:02 PM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • paulus999
    • By paulus999 12th Mar 18, 9:44 PM
    • 2 Posts
    • 0 Thanks
    paulus999
    Mini Bond Review Parts 1 and 2
    This was excellent and detailed.

    Like many - who may be seduced by the excellent website set up by LCF and of course the headlining interest rates topping the chart on best-savings-rate.co.uk which took me to the webpage in the first place - are doubts that it sounds too good to be true.
    The big problem is that this should NOT be listed as a 'savings' product in the conventional sense. It offers no safety net in the context of the 85,000 FSCS offered by banks - therefore its very inclusion on such a webpage is questionable and misleading.
    Per annum Interest is paid at 3.9%, 6.5% and 8% on investments over 1,2,3 years.
    Interest is paid into designated bank accounts yearly (1 year investment) or in four 6 monthly payments (6.5% - 2 year investment) or twelve quarterly payments (8% - 3 year investment).
    You cannot withdraw early in any circumstances so the principal is at risk for the 1,2 or 3 years.
    None of the positive feefo.com reviews indicate amount of investment, period of investment or whether (in nearly all cases) principal was returned promptly. Some quibble that tax on interest (20%) was deducted unlike a normal bank or building society account - which this is not.

    Apparently LCF interest rates are funded by borrowers seeking capital repaid at 12 to 20% per annum.
    The borrowers are supposed to provide proof of security - assets in the ratio of 100,000 for every 75,000 borrowed. If borrowers can comply with such why are they not negotiating better credit terms? Lending rates have been good because of the ongoing low base rate - but 12 to 20% is NOT good. The reality is that those securing capital at high interest are always going to have highest risk of defaulting on their repayments. LCF's business model sounds incredible and there is nothing of substance in available published financial sources to contradict this. Where is evidence of a portfolio of reliable borrowers? How much capital does LCF have to lend?

    AGAIN. LCF do NOT provide SAVINGS products in any normal sense of the word IF- as others have commented - there is no FSCS (85,000) safety net.
    They sell high risk investments that should never be included on best-savings-rate.co.uk where I was initially seduced by the link. Their inclusion is both misleading and irresponsible.
    Last edited by paulus999; 12-03-2018 at 11:57 PM.
    • jimjames
    • By jimjames 12th Mar 18, 9:51 PM
    • 12,582 Posts
    • 11,229 Thanks
    jimjames
    Global Security Trustees Ltd, Tunbridge Wells, (text removed by MSE Forum Team), a non-practising solicitor, has been suspended for a year.
    Originally posted by bail-in
    I wonder why said solicitor is so wary about his name being in the public eye. The link still gives the name if anyone is interested
    Remember the saying: if it looks too good to be true it almost certainly is.
    • bail-in
    • By bail-in 13th Mar 18, 7:31 AM
    • 39 Posts
    • 13 Thanks
    bail-in
    I posted earlier about the practicalities of the low staffed virtual lending team of LC&F in carrying out the commercial lending business. Having spoken to other commercial lenders, it is possible with low single digit employee numbers to carry out lending re the loan numbers and over the period claimed by the LC&F website. I read that one of the biggest lenders in the UK only has eleven employees.

    I also see that a similar SME lender charges much higher loan rates than LC&F, between 30-40% APR as compared to the LC&F 12-20% rate.

    However, the fact that it is difficult to get any info about the LC&F lending team holds. The evidential nondisclosure to LC&F customers of details of SME borrowers also applies to introducers including IFAs. LC&F will not provide evidence of the SME commercial lending business to introducers.

    Other commercial lenders will not provide names of their customers according to commercial contractual terms, although many commercial websites have the logos of their clients as business promotional aids. Like other commercial websites LC&F could provide anonymised data on the SME borrowers on the LC&F website. Although this would be more work for them considering the low staff numbers, and investors are being attracted in without such info.

    For an indepth review of the London Capital and Finance mini-bond visit
    https://anonymouslcafgmail.weebly.com/
    Last edited by bail-in; 22-03-2018 at 9:34 AM.
    London Capital and Finance Mini-bond Review Part 1
    London Capital and Finance Mini-bond Review Part 2
    • firestone
    • By firestone 13th Mar 18, 8:15 AM
    • 226 Posts
    • 100 Thanks
    firestone
    the way you turn a negative into a positive a job in politics beckons
    • Reaper
    • By Reaper 13th Mar 18, 8:52 AM
    • 6,244 Posts
    • 4,499 Thanks
    Reaper
    the way you turn a negative into a positive a job in politics beckons
    Originally posted by firestone
    There seems to be a misconception amongst many that Bail-In is a supporter of LCF. He isn't. He has also uncovered one of two interesting snippets though you need to be a pretty dedicated and patient reader to spot them!
    • AnotherJoe
    • By AnotherJoe 13th Mar 18, 9:26 AM
    • 9,380 Posts
    • 10,356 Thanks
    AnotherJoe
    bail-in has a strange obsession with LC&F and also seems to believe that the longer a post is, the more persuasive it is.

    It isn't.
    • Malthusian
    • By Malthusian 13th Mar 18, 9:53 AM
    • 4,072 Posts
    • 6,382 Thanks
    Malthusian
    Bail-in isn't trying to persuade or dissuade anyone, anyone open to reasoned persuasion has already run away from London Capital & Finance long before they reach Bail-in's posts.

    What I believe he is trying to do is play detective and uncover hard evidence that London Capital & Finance is failing to generate sufficient returns from its SME lending to sustain the promised returns to bondholders. If London Capital & Finance is not consistently generating sufficient external revenue to pay income and capital as they fall due, it would follow that London Capital & Finance is paying off existing investors using the only other source of money it has, which is new investors' money.

    There is however no evidence that LC&F has insufficient external revenue to pay its bondholders. Playing Internet detective can be fun (for those of a certain mindset) but is usually futile. There is no smoking gun. LC&F is an unregulated investment. It has no obligation to provide details of its lending activities. If people want to invest in loan notes without doing due diligence it's a free country.
    • paulus999
    • By paulus999 13th Mar 18, 11:07 AM
    • 2 Posts
    • 0 Thanks
    paulus999
    " it would follow that London Capital & Finance is paying off existing investors using the only other source of money it has, which is new investors' money."


    LCF's business is to sell invested moneys at a return interest of 12-20%. Interested to know how they determine specific actual repayment rate. Based on amount borrowed? Amount of security? Credit worthiness? Afterall 12-20% is vague and borrowers would want specifics up front.
    If the security they request has sufficient due diligence done to honour their claim that no borrowers have so far defaulted - then surely many of these worthy and well managed and astute borrowers could and should have obtained better credit terms - maybe from conventional lenders.
    It does lend credibility to the idea that LCF with its well set out web pages and credible claims of high returns is some kind of ponzi scheme where new investors are very likely sourcing the capital to pay earlier investors - and at some point this 'plc' will have nobody available to return calls when funds dry up or are siphoned off.
    • firestone
    • By firestone 13th Mar 18, 11:54 AM
    • 226 Posts
    • 100 Thanks
    firestone
    There seems to be a misconception amongst many that Bail-In is a supporter of LCF. He isn't. He has also uncovered one of two interesting snippets though you need to be a pretty dedicated and patient reader to spot them!
    Originally posted by Reaper
    Have read the posts and while i would agree most are balanced and don't push the product and i have no knowledge of LCF good or bad it seems sometimes the negative becomes a positive very subtly.I.E the post from this morning in sections could be read as -
    have asked before do they have enough staff -answer yes
    others offer 30 - 40% they only offer 12% - so suggests that's a good thing
    and the last line tells us investors are being attracted in

    but your right it could all be true and a matter of perception and yes they are a good read
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