Proplend - Secured Peer-To-Peer Lending
Proplend allows you to invest in secured commercial property loans. Lenders can choose to invest across three Loan to Value (LTV) based Tranches, each catering for differing risk appetites and return requirements. All loans are supported by a 1st legal charge over an income producing commercial property, in England and Wales, and offer returns of 5-12% pa*.
Proplend is a Peer-to-Peer Lending platform that specialises in the massively under-banked sub £5m commercial real estate debt sector. Commercial real estate debt is a long established institutional asset class that offers investors a reliable and attractive source of income with limited capital risk. Proplend is opening up this asset class and giving investors a simple, secure and transparent way to invest and earn.
Proplend’s P2P lending platform is fully transparent and allows you to perform your own due diligence by accessing the draft loan contract, legal report, valuation report and loan request document. Lenders are given the opportunity to invest on a part or whole loan basis and can start building a diversified portfolio by investing in multiple Loans across different Tranche levels, Property types and Loan terms. Receive monthly interest payments direct to your Lender account.
Proplend understands that not every investor has the same return requirement or appetite for risk. In recognition of this, Proplend created the Proplend Loan Tranche, which splits the whole loan into 3 parts or ‘Loan to Value (LTV) based tranches’, allowing investors to choose which tranche best suits their risk profile.
- The tranches are split based on the LTV, the amount (%) the borrower requires vs. the value of the property.
- Investors can choose which tranche, or a combination of tranches to invest in, and how much to invest.
- The higher the LTV the greater the risk, but also the greater the return.
- Tranche A offers 200% capital protection, meaning the property would have to fall in value by over 50% before the investment is at risk. Tranche B offers 154% and Tranche C 133%.
- Average returns, to date, per annum are 6.28%** in Tranche A, 7.47%** in Tranche B and 9.39%** in Tranche C.
Much better rates than my bank, funds invested with Proplend have started earning interest straight away and are paid out every month. I am thinking of increasing my investment.
- Proplend Investor
Visit the Proplend website for full details.
* After fees, but before bad debts and taxes
** Returns as of January 1st, 2016. After fees, but before bad debts and taxes
Please note that for a loan to be SIPP or SSAS acceptable, it must fulfil both of the following criteria:
1. You can only make loans to corporate entities (not individuals).
2. You cannot make loans to investment companies holding residential property.
Lend On Proplend With Evolution SIPP or SSAS
SIPPclub members have exclusive access to Evolution SIPP and SSAS. Click the link to read more about Evolution.
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To discover whether lending your SIPP or SSAS money on Proplend is appropriate for your circumstances, please complete the form on this page.
Crowdfunding And Peer-To-Peer Risk Warning
When a platform has been assessed and approved by a SIPP or SSAS operator, this does not imply that any loan or investment opportunity is endorsed in any way. A SIPP or SSAS operator's due diligence review is limited to ensuring the processes and procedures of the platform are in line with both FCA and HMRC principles. It's entirely your responsibility for carrying out your own due diligence on any loan or investment opportunity before agreeing to lend or invest your pension money on a platform. As a SIPP or SSAS operator will continually review platforms from a regulatory perspective, it's possible for a platform to become 'unapproved' if something changes.
With peer-to-peer lending, your capital is at risk if you lend to individuals and businesses. You may lose some or all of the capital lent if the borrower defaults and is unable to meet its liabilities. Historic loan default rates are not necessarily indicative of future default rates. In addition, lending is an illiquid investment, which means you may not be able to access the capital you lend for the duration of the loan period, even if the platform offers a secondary market. Investing in any business involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdfunding is generally targeted at investors who are sufficiently sophisticated to understand the risks and make their own investment decisions, based on their knowledge, experience and financial capacity. Neither crowdfunding nor peer-to-peer lending is covered by the Financial Services Compensation Scheme. The tax treatment of your investment is dependent on your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of crowdfunding investment or peer-to-peer lending, you should consult a suitably qualified independent financial adviser.
As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
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