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Funding Empire announces launch of new asset-backed model

Date:

 

Copy of launch email sent to our lenders - 22/03/2015

During our interactions with you and your fellow lenders, many of you said that you would like to have the opportunity to invest in asset-backed loans which provide regular monthly repayments. In response to this demand we are pleased to announce that we have agreed to collaborate with BLX.

BLX provides asset finance for small to medium size businesses in the UK. The BLX team has over 30 years' experience in this sector, with a proven track record and strong demand for their services. More information about the BLX team can be found on our ‘About Us’ page.

 

We are now very excited to offer you the opportunity to invest in BLX's pre-originated asset-backed loans. As well as benefiting from their experienced and proven credit assessment process, they will continue to manage the portfolio on an ongoing basis which will also be monitored by Funding Empire on a daily basis. 

 

We have conducted very extensive legal due diligence and I am extremely pleased to inform you that the legal documentation and processes for the new asset-backed model have now been signed and executed.

 

Our first loan request under this model will be posted on the platform in the next couple of days. As per our current procedure, we will email you when we list this loan request.

 

Loans under this model will be for a maximum of £50,000 over a maximum term of 3 years providing monthly capital and interest repayments to lenders. Loan requests will typically last between 5-7 days and will operate as fixed rate auctions. They will end either when the loan request is filled or it expires. Loan parts from this model can be traded as normal on our secondary loan market.

  

All loans will be granted to BLX and as with our current procedures, security will be held by Funding Empire Security Trustee Company Limited, on behalf of our lenders. 

 

BLX has provided as follows:

  • A debenture granted to Funding Empire Security Trustee Company Ltd. (FESTC) over their loan / hire agreements in relation to the loan being offered. This also covers the assets under the agreements and FESTC will be the only debenture holder.
  • An executed assignment notice over their relevant loan / hire agreement, which is signed and sent to us when BLX draw down a loan from us.
  • Appointment of a Funding Empire director to the BLX board to monitor their lending activities, day to day operations and represent our lenders interests.
  • Ongoing access to their live loan book which we will monitor on a daily basis.
  • Ongoing access to their internal finances, processes and procedures which will be monitored regularly.
  • Ongoing access to their financial affairs including financial reporting standards / methods and their board meetings.
  • Agreed parameters for deals to be placed on the platform i.e. asset types to be excluded, maximum loan term, maximum loan amounts, maximum LTV's (Loan to Values) etc.
  • Agreed that no loans in arrears, default or with a history of poor repayments are to be placed on the platform.

More detailed information about this model and the underlying collaboration can be found on the 'How It Works' and 'FAQ' pages.

 

We will also be holding an open evening for lenders in the next few months at BLX's office in Cambridge, where both teams will be on hand to answer any questions. We will email you with details of this closer to the time. In the meantime, if you have any questions at all about this model, please email either myself parag@fundingempire.com or John Stickley (Chairman of BLX) john@theBLX.com.

 

Kind Regards,

 

Parag Patel

Managing Director

Funding Empire

Source: Funding Empire

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