Proplend was founded in 2014 in response to the fallout of the 2008 banking crisis. On one hand bank interest rates fell to and have remained at historic lows depriving cash rich individuals and institutions of much needed low risk income and on the other hand banks who had previously been very active in property lending had either disappeared or pulled out of the market.
The sector of the market worst hit was sub £5m commercial lending where there is a staggering £50 billion of existing debt that requires to be refinanced over the next 3-5 years. This is currently being serviced by less than 11 active lenders.
Proplend Investment Tranche C
|Tranche||Risk Level||Loan-to-Value ||Average Projected Return|
|C||Higher||66-75%||9.39% p.a. gross|
Proplend is an online marketplace for secured commercial mortgages, where all the loans are supported by a registered legal first charge on an income producing commercial property
|Who do you lend to?||Lend money to individuals and SMEs|
|How is the investment secured?||Property|
|Who chooses the investment?||The investor either self-selects the investment or Proplend chooses the investment on behalf of investors. |
|Is the platform FCA regulated?||Yes|
|Type of investor?||Every-day investors|
|Is early exit possible?||Yes, investors are able to sell loans to other lenders through a secondary market|
|Investor fees?||10% of the gross interest that investors receive|
|Secondary market?||Yes, Investors are able to sell loans to other Proplend Lenders through our secondary market, the Proplend Loan Exchange (PLE)|