How is your money secured and protected?
Your money is important to LC&F and that is why we take every step to ensure that your investment
A strict due diligence process
LC&F conducts due diligence checks on borrowing companies to ensure that borrowers can
meet their loan commitments and have sufficient security for the requested loan (maximum
loan to value is 75%, i.e. for a loan of £75,000 a company would need to provide
£100,000 of acceptable assets as security) and maintains a close relationship with its
borrowers to ensure they can continue to meet their loan commitments. The directors
believe that because of this approach, to date (as at 30/05/2017), none of its borrowers
have defaulted on their loans.
LC&F has the right to recover any loan
If a borrowing company cannot repay the loan then LC&F has the legal right to sell the
assets of the borrowing company which were provided as security.
Your investment with LC&F is in the entire loan book, rather than just one loan, this
results in your risk being spread across all borrowing companies.
Charge over the assets of LC&F
LC&F has appointed an independent security trustee to hold a charge over LC&F (which
includes the £256m of assets secured against LC&F’s loan book), by way of a debenture.
The Security Trustee has been given the power to act in the interest of all investors
if LC&F is not able to meet its commitments.