Bondholder funds are secured by a charge over the assets of LC&F as well as the assets of the companies LC&F lends to. Global Security Trustees is an independent security trustee with over 80 years of corporate legal experience and has been appointed to hold these securities on trust for all bond holders.

How Is Your Money Secured And Protected?

Bond Holder funds are secured by a charge over the assets of LC&F and all borrowing companies. London Capital and Finance plc have appointed an independent Security Trustee who holds the security on behalf of the investor.

London Capital and Finance Plc is a successful corporate lending company. It lends 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 London Capital & Finance Plc and the security taken from borrowing companies.

Where Your Asset-Backed Security Comes From

Capital repayment will be made from:

  • Accumulated profits
  • Repayment of base loan capital from Borrowers
  • Sale of property and assets used to secure investment capital
  • Liquidation of LC&F’s asset base

Risk Factors

The following factors are key risks associated with this investment, they should not be considered definitive and you must refer to the Information Memorandum for a more complete list.

Bonds are not transferable

There is, and will be, no established market for the Bonds as the Bonds are not transferable and you should not invest if you may need to realise your investment prematurely.

Illiquidity and non-transferability

Investments in unquoted securities (i.e. investments not listed or traded on any stock market or exchange) such as the Bonds are illiquid (i.e. they cannot be disposed of prior to the Maturity Date so as to realise cash). The Bonds are non-transferable, so your money is effectively locked in until the Maturity Date of each specific Bond.

Taxation

The statements in this brochure and the associated Information Memorandum are intended to be a brief description of some of the consequences of investing in bonds. Potential Bond Holders should seek their own specialist advice if they are unsure of their own taxation position in relation to investing in bonds.

LC&F is required by HMRC to retain a 20% withholding tax from any interest payable from the bond. Bond Holders may be liable, depending on their own circumstances, to further taxation on the interest payable by the bonds. Any additional taxation liability will be required to be met from Bond Holders own resources.

LC&F is dependent on Borrowing Companies to repay loans

LC&F makes loans to Borrowing Companies and is reliant on these Borrowing Companies to repay the loans LC&F grants in order for LC&F to be able to make payments of principal and interest to Bond Holders. If a significant volume of loans fall into default, LC&F may not have sufficient funds to be able to pay principal and interest to Bond Holders within the timescales of the Bond.

Proceeds of the realisation of security

The Bonds are secured by a debenture over the assets of London Capital & Finance Plc. There can be no assurance that, in the event that this security is realised, the amounts realised will be sufficient to satisfy the obligations to repay principal and accrued interest under the Bonds.