It is very important to understand that by lending funds through our platform your capital is at risk.
Funding Empire is a trading name of Tally Marketplace Lending Ltd. Funding Empire allows you to lend directly to businesses in 2 different ways:
You can invest in loan requests made by borrowers, which were received directly by us, and went through our detailed credit assessment process. These can be secured or unsecured loan requests that are assigned a risk rating by us; (please note this product was withdrawn on 1st July 2015 however there is an opportunity to invest in some of these historic loans using our secondary marketplace)
and / or
You can invest in loan requests, made by ‘The Business Lending Exchange’ (BLX), which are secured by existing hire agreements made between BLX and their borrowers. BLX are an asset backed lender.
Risk of lending to businesses
As you are lending directly to businesses, a risk is always present in terms of loss of capital. Our stringent credit assessment process helps minimise this risk but it is important to remember that an element of risk will always exist, as such is the nature of lending.
Unsecured / Secured SME Loans (Product withdrawn on 1st July 2015)
All business loan requests we receive directly and publish on our site have been assessed by our experienced credit team and assigned a ‘risk rating’. Our risk ratings are A+, A, B, C and N (businesses trading less than 2 years).
Asset backed loans under our collaboration with The Business Lending Exchange (BLX)
Loan requests under our collaboration with ‘BLX’ are secured by existing hire agreements between BLX and their borrower. BLX undertake the credit assessment, origination and collections role in regards their hire agreement, between themselves and their borrower, utilising their vast experience and knowledge in this sector. Our lenders are presented with details of the the hire agreement used as security, the assets listed on the hire agreement, current LTV (loan to value), loan term, rate on offer, any other relevant information and details of additional security taken from the BLX borrower e.g. additional assets held in safe storage, personal guarantees, debentures etc.
Managing your risk – ‘Diversification’
Diversification means spreading your lending (investments) across lots of different businesses, which means you have a small amounts lent to lots of different business, instead of a large amount lent to just a few.
This becomes important when a business is not able to fully repay its loan as the impact on your overall return will be less if you have made small loans to a large number of businesses as opposed to large loans to a few.
As every investor is different, you are free to choose the level of diversification that suits your investment criteria, risk profile and personal financial situation.
Late payments and bad debts
It is important to remember that when lending to businesses, there is an element of risk that some may not be able to fully repay their loan or make timely regular repayments due to a change of circumstance.
We manage the entire recovery process and will first try to work with the borrower to minimise any losses and will commence formal legal proceedings if / when we feel they are necessary. Affected lenders are kept fully informed throughout the process with regular updates provided by email.
As we have not experienced any bad debt to date, we cannot provide actual figures but we estimate a bad debt figure of 1.3%.
Secondary Loan Market
We provide lenders with a secondary ‘Loan Marketplace’ where they can sell loan parts of their choice to other registered lenders. Some lenders may want to sell loan parts to release some capital early rather than allowing their investment it to run its full term.
It is important to remember that any loan parts listed for sale on our ‘Loan Marketplace’ are not guaranteed to be sold; a sale will occur when a willing buyer decides to purchase them.
Please see our FAQ's for more information about buying and selling loan parts using our ‘Loan Marketplace’.
Client cash and FSCS
Your investment with us will consist of invested and un-invested funds.
All invested funds are NOT covered by the FSCS and you will not be able to claim for losses you make in the course of lending to businesses.
All un-invested funds, whether available cash or pending bids, are held in a segregated client account with our bankers.
Any available (un-invested) funds held in our client account are covered by the FSCS in the event of our bankers failing, up-to a maximum of £75,000. Please visit http://www.fscs.org.uk/ for more information about this scheme.
As these client funds are held in a segregated client account, they would not be available to Tally Marketplace Lending Limited’s creditors in the event of our failure.
As all client funds are held in a segregated client account, they would not be available to Tally Marketplace Lending Limited’s creditors in the event of our failure.
As per the FCA’s requirements, in the event of Tally Marketplace Lending Limited ceasing to trade, we have an agreement in place with another FCA authorised firm (Paratus AMC Limited) to administer any loan repayments due to our lenders and to manage the orderly run off of our loan book.
Please click here to view our current loan book, statistics and performance.
Please remember that historical performance is not an indicator of future performance and that your capital is at risk
All information correct as of 26th July 2016.