LC&F has the legal right to sell the assets of the borrowing company which were provided as security if the loan is defaulted.
as of 30/06/2018, none of our borrowers have defaulted on their loans.
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 30/06/2018, none of its borrowers have defaulted on their loans.
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.
LC&F has appointed an independent security trustee to hold a charge over LC&F (which includes the £300m 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.