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Default clauses within the loan facility documentation issued to borrowers are extensive and cover a whole range of potential events, varying in severity. These can range from technical defaults such as annual accounts not being provided within the stipulated timescales, to payment default or, more seriously for example, the facility not being repaid by the expiry date which could potentially result in a loss of lender capital or interest for lenders (a potential bad debt).

Should there be an event of default, the severity, including the coverage of the loan against the security, will be considered when deciding upon the most appropriate course of action. Available actions may include; issuing a permanent waiver (e.g. Invest & Fund accepting that whilst a breach of the original terms has taken place it is appropriate in the circumstances to waive that term), or a formal default being called which could ultimately lead to a demand for repayment and recovery action, should the event of default not be satisfactorily addressed following an appropriate period of forbearance. Therefore, an event of default will not always lead to a bad debt and the severity of the event and the level of security cover held both need to be taken into account in determining an appropriate course of action.

The shortest loan that may be offered on the platform is 6 months and the longest that may be offered is 36 months, in monthly increments.

Part or all of a loan may be offered for resale to other Invest & Fund members after the first repayment has been received, via the Resale Marketplace. This secondary market allows previously funded loans to be offered at a premium of up to +10% or a discount of up to -10% and provides Lenders with liquidity if a resale is achieved.

The minimum bid on a loan on the Lending Marketplace is £250.
On the Resale Marketplace, the minimum bid is £250. If a loan is offered for resale that is lower than £250, then the full amount must be purchased.

There is no maximum bid on either marketplace.

We accept deposits via internet banking or bank transfers (e.g. BACS or CHAPS).
Please refer to your ‘My Account’ page for full details.

If for any reason you have a complaint or concern concerning the operation of the service please contact us by email at enquiries@investandfund.com with brief details of your complaint and your account number. We have a written complaints procedure which can be viewed here.

Subject to certain criteria being met, lending may be possible through a Lender’s SIPP(Self Invested Personal Pension) or SSAS(Small Self Administered Scheme). We will liaise with your SIPP/SSAS provider if this is of interest to you. Please contact us for more information.

Invest & Fund launched an Innovative Finance ISA (IFISA) in November 2019. Please click here to visit the IFISA home page to find out more information.

Active Capital Employed (ACE) is a live indicator of the % of capital lent through the Invest & Fund marketplace.

To make sure your capital is working for you, the ACE % you see on the 'My Account' page should be as close to 100% as possible.

Invest & Fund is committed to following all applicable laws and regulations to ensure that the firm's business is not used to facilitate money laundering.

The firm employs a risk-based approach and determines the appropriate client due diligence measures to be carried out on Lenders on a risk-sensitive basis, depending on the type of client and the project in question.

We can only accept Lenders that have a residential address in England, Scotland, or Wales, are over 18 and hold a UK bank account. If you are not based in the UK and/or you do not hold a UK bank account, please contact us to discuss the options available to you.

There is no registration fee for Invest & Fund Lenders. Lenders pay 0.75% per annum on outstanding funds lent through our platform via their standard account and 1.25% per annum via their IFISA account. The fee is deducted each time a Borrower repayment is made and the Lender receives funds back into their Invest & Fund account. If you sell a loan on the Resale Marketplace then a one-off fee of 0.25% of the value of the transaction will be payable on the successful sale of the loan.

The gross interest rate is typically in the range 7.00%-8.25% p.a.

There are a number of factors to take into account in order to calculate a net return, namely lender (facility) fees, default and any tax due. Remember that lenders capital is at risk of loss if a borrower defaults.

We provide a table in each new Credit Summary issued which provides an illustration of the net return for that loan taking into account these potential deductions to arrive at an illustrative net return rate. An example is shown below:

Description and Illustrated Net Return
Standard Account IFISA
Loan interest rate 7.25% 7.25%
Default Assumption ¹ -0.28% -0.28%
I&F Lender Fees p.a. ² -0.75% -1.25%
Net Return (post default assumption) 6.22% 5.72%

* Loan Interest is subject to Income Tax at your marginal rate, currently 20% for a basic rate taxpayer, less any allowances which may apply. I&F is not able to provide tax advice and, if this is required, you should seek guidance from a suitably qualified professional.
* Income Tax is not payable on interest earned in an IFISA
¹ Taken from the Invest & Fund default model across the whole portfolio of loans rather than the specific expected default risk of this loan
² IFISA fees are higher reflecting costs incurred around the administration of the IFISA

Invest & Fund accounts for interest paid to Lenders net of its fees, as described above, and without any deduction for income tax.

The onus is on each Lender to properly account for any income tax that may be due to HMRC and to assist with this requirement, the Lender’s account dashboard has a statement of Gross Interest for each tax year ended 5th April. This details the Borrower Name and the amount of interest received for each loan.

In the UK, Lenders are liable for income tax on the interest that they receive, however, interest paid by Invest & Fund to individual Lenders qualifies as part of the tax-free Personal Savings Allowance announced in the 2015 Budget. This is available to basic rate taxpayers, but top-rate taxpayers are not eligible for the allowance. All sources of interest received must be aggregated in determining the Lender’s total interest against which this allowance applies.

Invest & Fund is unable to offer any tax advice to individual Lenders. If you have any further queries we recommend that you should contact your local tax office or an accountant.

Lenders are notified in advance via email if a loan is to be repaid early. For Interest Rolled Up loans, interest accrues daily and is calculated using the actual/365 method. If a loan is fully repaid up to 91 days into the repayment term, then Lenders will generally receive 91 days’ interest back. If the loan is repaid more than 91 days into the repayment term, then Lenders will receive the relevant amount of accrued interest, as of the date of repayment. Interest is paid up to the date on which the settlement funds are received into Invest and Fund Limited Client bank account. However, there may be a delay of up to one working day for the transaction to show in Lenders’ accounts. Please note that the interest rate stated on a loan is a gross annual figure. For term extension loans where an I&F development or bridging loan is redeemed by another I&F loan to the same Borrower then a minimum number of days interest will generally not apply.

Loans purchased by a successful bid on the Lending Marketplace accrue interest from the date that the loan is drawn down by the Borrower. Loans purchased on the Resale Marketplace accrue interest from the date that the loan is acquired by the Lender. In both cases, the actual receipt of this accrued interest is dependent upon the loan type. Where a loan is rolled up, interest is paid either at the end of the term or earlier if the Borrower chooses to repay the full amount before the end of the term. A Lender’s account is credited with the interest attributable to their loan on the day it is received from the Borrower. When interest is paid monthly, the Lender’s account is credited with the interest attributable to their loan on the day it is received from the Borrower as with rolled up interest, but with regular payments on each monthly anniversary since draw down. In all cases, the Lender will be kept informed by email of the Borrower’s intentions should there be any variation to the full term as agreed at the outset or should a repayment less than the full amount of the loan plus accrued interest be offered e.g. where the sale of a development is piecemeal.

Borrowers are required to notify us of any event of default promptly upon becoming aware of it. Events of Default include not making payments on their due date, excluding if the failure is caused only by an administrative or technical error. If a payment is made within 3 business days of its due date, it is not a formal Event of Default. Any failure by a Borrower to comply with conditions set out in the relevant documentation may amount to an Event of Default. Similarly, any misrepresentation made by the Borrower to Invest & Fund may amount to an Event of Default. If a Borrower misses any payments, the Lenders authorise Invest & Fund to act on their behalf and contact the Borrower to attempt to collect the outstanding payment. Invest & Fund will keep the Lenders informed about any progress made and any monies received will be paid to the lenders on a pro rata basis. Invest & Fund may instruct the Security Trustee, I&F Securities Limited to enforce the relevant security documents. Please refer to the FAQ ‘When does Invest & Fund place a loan in default, and why are loans in default assigned to I&F Securities Limited (“IFSL”)?’ and the Terms & Conditions for further details.

You may e-mail us at enquiries@investandfund.com or phone our Customer Helpline on 01424 717564 (9am – 5pm, Mon-Fri). Alternatively, we can be reached through our various social media channels.

We will lend to UK registered companies, LLPs and partnerships with over three partners who are property developers. We consider loan applications for building, buying or re-financing projects on residential developments. We also consider loans for bridging finance.

Invest and Fund Limited is authorised and regulated by the Financial Conduct Authority (FSCS) (FRN: 711378). For further information please visit www.fca.org.uk. Invest and Fund Ltd is not covered by the Financial Services Compensation Scheme. If you have a complaint you may be able to refer it to the Financial Ombudsman Service (FOS). Please see our Complaints Policy for further details. Invest and Fund Limited (No. 8277803) is a company registered in England and Wales. The registered address is the HCP Building, Chichester Road, Ponswood, St Leonards-On-Sea, East Sussex, TN38 9BG.

The Resale Marketplace enables current Lenders to sell part or all of their loans to other Lenders.

A Lender can decide to sell all or part of one of their current I&F loans at any time, providing that the loan is not in default, using their I&F online account. The process is straightforward:

  • Sign in to your I&F account
  • Go onto your Dashboard and select ‘Current Loans’
  • Select the ‘Sell Loan’ button next to the loan that you want to sell
  • Enter the amount of the loan which you want to sell. The amount is pre-populated with the full amount. Then select ‘Sell Loan’ and this will place the loan on the Resale Marketplace for other Lenders to be able to view and buy.

    You can change your mind at any time before the loan has sold and withdraw it from sale. As soon as the loan sells the monies will be transferred to your Lender I&F account, less a Transaction Fee of 0.25% (which is shown on the ‘Sell Loan’ page).

    It should be noted that the sale of a loan, and therefore access to the funds which have been lent, is dependent upon the willingness of another Lender to buy your loan on the Resale Marketplace.

No. You may personally select which of the available loan(s) you wish to buy. For each loan that is for sale, you may also select whether you wish to purchase some or all of that loan. The minimum amount that can be bought from each loan in one purchase is £25. If a loan is posted that is less than £25, then it must be purchased in full.

The loans that are up for sale are offered either by Lenders or Underwriters. Once the Borrower application has been approved by our Credit Assessment Group for listing, it moves to the Lending Marketplace. Lenders have the opportunity to own a part of the loan from the very beginning by bidding via the Lending Marketplace. Loans that are up for sale on the Resale Marketplace may be currently owned by any Lender that is simply wishing to access their capital and accrued interest from a specific loan early, for a variety of reasons or by an Underwriter who is looking to reduce their holding so that they can underwrite new deals.

The Resale Marketplace is not a reflection of the strength of a loan, and therefore the proportion of a specific Borrower’s loan that is on the Resale Marketplace should not be used to assess the risk of a Borrower. The Resale Marketplace simply provides existing Lenders with liquidity, allowing them to access their capital and accrued interest early if a loan is successfully sold to another Lender.

No, A Selling Lender is not entitled to sell Loan Parts which are in arrears (i.e. a payment of interest or capital has been missed) or which are known by the Selling Lender to be in default.

Subordinated loans are loans which rank behind one or more other loans in 'priority' of repayment and terms, examples include second (or subsequent) charge loans and mezzanine finance, such loans are described as 'junior debt.' If a secured loan is subordinated it means that there is another, pre-existing loan secured against the same property. In such circumstances where a borrower cannot repay and the security is realised, then subordinated lenders will only be able to recover money after higher ranked lenders have been fully repaid, including any interest they are owed.

Lending against subordinated debt increases the risk of loss of capital, and so should only be contemplated by experienced lenders. This is why Invest & Fund only makes such opportunities available to clients who have an FCA Regulatory Status of a Professional Client.

Events of Default include Borrowers not making payments on their due date, excluding if the failure is caused only by an administrative or technical error. If a payment is made by a Borrower within 3 business days of its due date, it is not a formal Event of Default. Any failure to comply with conditions set out in the relevant documentation may amount to an Event of Default. Similarly, any misrepresentation made by the Borrower to Invest & Fund may amount to an Event of Default. In an Event of Default, Invest & Fund may instruct the Security Trustee, IFSL, to also enforce the relevant security documents. Under the Terms & conditions of the Invest & Fund platform, in the event of a default by a Borrower, the Lenders assign their right title and interest in the Loan Contract to IFSL, the associated company of Invest & Fund, specifically set up to deal with defaults and recoveries. It is made up of three independent directors and the Invest & Fund Finance Director, with a mandate to act in the best interests of the Lenders at all times. IFSL then work with Invest & Fund on behalf of all the Lenders to recover any outstanding money due under the loan. The possible remedies available to the Security Trustee include:

  • Cancelling the undrawn portion of the Facility;
  • Declaring that all or any part of the Loan, accrued interest and/or any other amounts accrued or outstanding under the Finance Documents be immediately due and payable, at which time they shall become immediately due and payable;
  • Declaring that all or any part of the Loan shall be payable on demand, which demand may then be made at any time;
  • Exercising any or all of the rights, remedies, powers or discretions of the Finance Parties under the Finance Documents;
  • Applying the interest rate under the relevant Interest Clause to the Loan or any part of it as if it were due but unpaid; and/or
  • Appointing appropriate 3rd parties to assist in the recovery of owed monies.

Please refer to the Terms & Conditions for further details.

If, when the auction closes, there are not sufficient funds generated to cover the loan and the Invest & Fund Underwriters are not able to make up the shortfall, the drawdown will not complete and the monies pledged by Lenders via the auction will be returned to their Invest & Fund account.

Invest & Fund only places propositions onto the marketplace that we believe will be funded, and to date all of the loans that have been posted on our Lending Marketplace have been successfully funded. However, in the unlikely event that a drawdown request was under-subscribed, or was refused on credit assessment grounds this is likely to require a Borrower to increase their own equity in the project, restructure the drawdown or seek finance elsewhere. All of our loan propositions require Borrower equity to be in place at the outset which means that there should be an equity cushion as the value of the asset is likely to exceed the commitment of our Lenders, however in exceptional circumstances, should this not be adequate, then there are generally guarantees or other security to call upon, but it should be rememebered that Lenders' capital is at risk so repayment is not guaranteed.

Invest & Fund Lenders include High Net Worth Individuals, Family Offices, Funds and Companies who lend via our marketplace and the majority of our Lenders see the loans when details are posted on the Lending Marketplace, but there are exceptions to this. Some of our larger Lenders will only lend if they can take the whole loan; this is because they want to have control of any key decisions and have the security held in their name. This category of Lender is known as a Whole Loan Lender, and details of loan proposals which meet their pre-defined criteria may be provided at an early stage in the application review process, prior to being published on the Lending Marketplace. We also have a category of Lender termed as High Value Part Loan Lenders and this means that such lenders have the capability of funding a minimum £50,000 per loan. High Value Part Loan Lenders are likely to be Retail or Elective Professional Clients. These Lenders may see a loan before it is posted onto the Lending Marketplace as part of our assessment of ensuring that a loan has a high probability of being funded. Our Underwriters also see loans at an early stage. Underwriters will meet any shortfall between Lender funds and the drawdown amount, but not all loans are underwritten.

We allocate loans between Whole Loan Lenders (where loans meet certain pre-determined criteria) and other lenders on a formulaic basis. Any loan not allocated to a Whole Loan Lender will have at least some of the loan amount made available to our individual lenders via the Lending Marketplace.

Loans with a higher risk profile will only be made available to lenders who have the FCA Regulatory Status of a Professional Client (also see FAQ ‘What are subordinated loans?’)

Larger lenders who are able to lend £50,000 or more per transaction will be classified as High Value Part Loan Lenders . This means they will be offered, on a formulaic basis, transactions which meet pre-determined criteria and may subscribe for up to 75% of a loan tranche, which may be scaled back in the event of over-subscription. In all cases at least 25% of the loan will be placed on our Lending Marketplace lenders to fund.

This is set by the size of the loan and the size of its first drawdown (the size trigger). Our largest loans often suit larger and Whole Loan Lenders whereas they are self-evidently less suitable for smaller lenders where larger numbers of participants would be required. Invest & Fund will review this size “trigger” periodically and exceptions may occur from time to time.

We sometimes decide to briefly “underwrite” loans in this way for reasons of timing (including holiday season, borrower needing funds quickly etc.) and then as soon as is practicable make this available with our lenders on our Resale Marketplace (see FAQ ‘What is an Underwriter?’)

ISA stands for Individual Savings Account. It is a government scheme to encourage saving/investment in the UK.

The ISA is not an investment. It is a wrapper around qualifying investments.

Investors hold investments free of UK income tax and free of Capital Gains Tax (CGT) liability.

The Innovative Finance ISA allows individuals to use their annual ISA allowance to lend funds through alternative finance products. Qualifying investments through an Innovative Finance ISA include:

  • Peer to peer loans (P2P)
  • Crowdfunding debentures (debt securities)
  • Cash

The Innovative Finance ISA can be held alongside cash and stocks & shares ISAs to give Lenders more diversity and choice as to what to do with their ISA investments.

A Flexible ISA allows investors to withdraw and replace ISA monies within any tax year without counting towards the annual subscription limit.

There is no limit to the amount that can be withdrawn and then replaced. This applies to current and previous year ISA monies.

The Invest & Fund IFISA is a Flexible ISA

An ISA is an Individual Savings Account and is not a product in its own right. An ISA is a 'wrapper' in which you can shelter savings and investments from tax.

You can put money into an ISA, up to a set limit each tax year. This limit is known as your ‘ISA allowance’. Any returns or gains made from money placed in an ISA are not subject to income and capital gains tax. You don't even need to declare ISAs on your tax return.

There are three types of ISA available to the entire UK adult population; a cash ISA, a stocks & shares ISA and an innovative finance ISA. The Lifetime ISA is available for those between 18 and 40 and launched in April 2017. The Junior ISA is available to those under 18.

A cash ISA allows you to make the most of your savings because the interest you earn is free from tax. A stocks & shares ISA is a tax-efficient way to invest in shares and securities.

An Innovative Finance ISA allows P2P lending and debt-based securities to be put in an ISA wrapper. Peer to Peer lending is when individual Lenders lend to borrowers, usually through an online platform, like Invest & Fund.

The annual ISA subscription limit may vary each tax year (tax years run from 6 April to 5 April.)

The subscription limit for 2019-20 tax year is £20,000.

You may consult the government website for the current subscription allowance.

You can subscribe to one cash ISA, one stocks & shares ISA and one innovative finance ISA in each tax year. You may split your ISA allowance between the different ISAs.

In the next tax-year you can subscribe to an additional ISA of each type again.

To open an innovative finance ISA you must be 18 or over.

For all ISAs you must a resident in the UK or a Crown servant (e.g. diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK. You cannot hold an innovative finance ISA with or on behalf of someone else.

You can check your residency status on the HMRC site below:

CLick here

If you make a cash subscription to your ISA account, the amount subscribed will use part of your ISA allowance, even if you do not use this subscription to make an investment.

If you do not use up your subscription limit, it will not be carried over to the next year.

Lenders have the right to withdraw money or close their Invest & Fund IFISA by request (subject to terms and conditions). Any Loans which are held will first need to be sold via the Resale Marketplace, which are subject to finding a willing buyer.

No, cash in your Invest & Fund IFISA account will not earn any interest.

You may switch providers for innovative finance or cash or stocks & shares ISAs, or vice versa, by transferring your existing ISA to a new ISA manager.

You will be able to complete our online Transfer-In Form to transfer existing ISAs into your Invest & Fund IFISA.

Once you have completed the online Transfer-In form, this will need to be printed, signed and posted to the address detailed on the form.

You can transfer your ISA at any time, you do not have to wait until the end of the tax year. You will be able to complete our online Transfer-In Form to transfer existing ISAs into your Invest & Fund IFISA..

Once you have completed the online Transfer-In form, this will need to be printed, signed and posted to the address detailed on the form.

If you decide you no longer want an innovative finance ISA, you will have the right to cancel your account within 14 calendar days of the date your account is opened. If you cancel within this period, you will remain eligible to open an innovative finance ISA with us or another ISA manager. You will also not have used up any of your current year subscription. This will not apply if you cancel your innovative finance ISA after this period.

If you have successfully bid in any Invest & Fund loans during this period and subsequently decide you no longer want an IFISA with Invest & Fund, the loan will be transferred to your standard account and you will lose the benefits of the Isa wrapper.

If you choose to cancel your innovative finance ISA, any loans and cash credited to your ISA account will be transferred to a regular Invest & Fund account. Any Loans which are held will first need to be sold via the Resale Marketplace, which are subject to finding a willing buyer.

The survivor will receive an additional ISA allowance equal to the value of the deceased ISA at the time of death (in addition to their own annual ISA allowance).

This is specified by the lender and contained in Appendix 1 of the Bidding Mandate agreement.

This is specified by the lender and contained in Appendix 1 of the Bidding Mandate agreement.

A fair description and illustration of the likely actual return is provided towards the front in the Credit Summary and takes into account fees, default rates and taxation.

You will receive a link to this document via e mail for each loan purchased through the mandate agreement.

These are detailed in the relevant Credit Summaries.

I&F has only two risk categories of loan: Senior and Junior. Both are priced to reflect prevailing market conditions. All loans purchased through mandate agreements are classified as Senior loans.

Given the greater risk of capital loss associated with Junior loans these are not eligible for purchase through mandate agreements.