The fine print on how we work with you.
The Financial Ombudsman Service
London E14 9SR
You can call the Financial Ombudsman Service on:
● 0800 023 4567 (calls to this number are free from a landline or mobile phone);
● 0300 123 9 123 (calls to this number cost no more than calls to 01 and 02 numbers); or
● +44 20 7964 0500 (for calls from outside the UK)
from 8:00 to 20:00 Monday to Friday, and from 09:00 to 13:00 on Saturdays.
You agree to provide us with information requested during the application process and comply with all our identification and anti-money laundering requirements to enable us to comply with all applicable laws, regulations, rules and regulatory guidance. We may require you to send us copies of relevant passports or other documentation sufficient to verify your identity. As a part of the application process, you must register with us the details of a bank account or building society account based in the United Kingdom and opened in your name. If at some future date you wish to change Your Nominated Bank Account, you may need to be re-identified for anti-money laundering purposes.
Invest & Fund matches Lenders who want a better return on their money with Borrowers who require a loan to fund a property development project. As with all Peer-to-Peer Lenders, the biggest risk posed to Lenders is if a Borrower does not repay their loan. Payments are not guaranteed if a Borrower defaults and so Lenders' capital is at risk.
The main risk for Lenders is if the Borrowers do not repay the loan to the Lenders within the agreed time frame. If the Borrower does not repay the loan, the legal charge over the property can be exercised to settle the outstanding repayments. However, you should be aware that payments are not guaranteed if a Borrower defaults and for that reason, Lenders’ capital is at risk.
To view our current default rate, please click here.
I&F segregates client funds and holds security in the name of a Security Trustee:
Invest & Fund has prepared a Wind-Up plan which has been submitted to and reviewed by the FCA. This sets out the actions that it would take if the decision was taken to wind-down the business, to ensure that Lenders would be protected and that existing loans would continue to be managed effectively. The fully costed plan sets out how I&F would:
Invest & Fund Limited is authorised and regulated by the Financial Conduct Authority (FRN: 711378). Peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS) and so if you suffer a loss, you cannot apply to the FSCS for compensation.
If you have a complaint you may be able to refer it to the Financial Ombudsman Service. Please see our Complaints Procedure for further details.
One of Invest & Fund’s core values is transparency, and we strive to make all relevant information readily available to enable Lenders to make an informed decision. No lending opportunities will be made available on the Invest & Fund website until they have passed the Credit Assessment Group review process.
Invest & Fund will provide you with certain factual information about the Borrower, to help the Lender reach an informed decision as to whether to participate in a particular loan opportunity. This will include information about the Borrower’s background, the nature of the request, a description of the asset, the Borrower’s financial performance to date, management analysis, the legal position relating to security for the loan and a review of these key risks and relevant mitigating factors:
Please remember that Invest & Fund do not provide investment advice and if you have any questions about the suitability of a particular loan opportunity to you, please contact your Independent Financial Advisor.
Concentration risk is the probability of loss arising from a large exposure to a particular risk, for example an individual loan. Diversification is a risk management technique of mixing different loans in a portfolio, to reduce the concentration risk.
For that reason, you should consider spreading your exposure to risk by lending to more than one Borrower. If a loan is not available for funding in the Lending Marketplace at any particular time, you can check the Resale Marketplace for opportunities to trade loans for previously-funded applications with other Lenders on our site.
I&F undertakes its own detailed due diligence on potential Borrowers and their projects as well as seeking reports from professionals such as valuers, solicitors and surveyors, as appropriate. All of the loans are reviewed by Credit Assessment Group (CAG) who, between its members, have over 100 years’ specific credit experience. CAG considers whether loans meet our credit standards and only then will they allow a loan be able to be drawn down if it is successfully funded. Invest & Fund always ensures that there is Borrower equity in any loan proposition, and there are legally enforceable guarantees in place.
Property development loans are released in drawdown tranches against the measured progress of the development. Every drawdown request is reviewed by our Credit Assessment Group who considers the credit quality and must provide its sign-off otherwise the drawdown will not be allowed to progress. Although it has not happened to date there is also the possibility that the drawdown will not have attracted sufficient interest by the end of the auction, and so cannot progress. Either scenario may mean that the Borrower has to put in more of its own funds, restructure the drawdown or even seek refinance elsewhere. Any Lenders who have bid on a loan which has been refused or underfunded prior to drawdown will have their monies refunded. Lenders who are already invested in earlier drawdowns of the same scheme will have the benefit of the value of the security and guarantees if the scheme fails to progress. However, you should be aware that payments are not guaranteed and for that reason, Lenders' capital is at risk.
Each application is closely scrutinised and numerous aspects are looked at both in isolation and in conjunction with each other. There are times where a negative aspect on its own might not be enough to merit a decline but combined with other aspects it may well be. Equally, that same negative aspect could stop us from wanting to review further information.
There are three key stages in the loan risk assessment process:
Loan risk is assessed by focusing on 1) the Property, 2) the Borrower and 3) the Security. The following list highlights some key considerations:
As part of the assessment of a particular borrower, a wide range of factors will be evaluated, which include:
All in all, there are a myriad of factors that can affect our lending decisions and it all depends on their individual weighting. The appetite and safety of our Lenders is paramount and whilst I&F will do its best to assist a Borrower with their project, if we do not feel that it is something that our Lenders would wish to see, it will be declined.
For those applications which meet our standards a credit summary is drafted by the Internal Credit team and approved by CAG. It is published on the platform when a loan is made available. It provides an evaluation of the skills, experience and creditworthiness of the borrower, as well as an assessment of the overall project and proposal.