Borrower Frequently Asked Questions

If you don’t see an answer to your question, you can send us an email from our contact form.

To Borrow via the Proplend platform you can be a personal owner of commercial property or incorporated in the UK (or overseas with underwriter discretion) and able to offer a commercial property in England and Wales as supporting security. For more information about Proplend borrowing, take a look at our Borrower Guide (PDF).

Borrowers are bound by the Proplend Members’ Agreement. They are required to formally agree to the terms before their Loan Request can be posted live on the platform. Borrowers should read this document carefully and where necessary, take independent professional advice.

Proplend Security Limited (PSL) will enter into a single set of security documents with the Borrower. This will include a charge document and other security documents as determined by PSL. Borrowers should read these documents carefully and where necessary, take independent professional advice.

A RICS qualified valuer will be instructed to value the property and our solicitors will produce a Report on Title or equivalent legal report. This will be completed before the loan request is listed live.

1. Completion Fee deducted from the loan at drawdown from the gross loan amount

2. Valuation Fees payable directly to the valuer

3. Proplend Solicitor fees and any other professional fees

By agreeing to place the loan into ‘In funding’ on the platform a break fee of 2% of the gross loan amount is due, if the Borrower decides to cancel the Funding prior to it being fully funded within the agreed time period or if the loan is fully funded and the borrower fails to agree to and sign the loan contracts within the agreed time period.

If at the end of the funding period, and insufficient offers have been received, the funding period can be either extended or the Borrower is free to seek funding elsewhere.

 

Yes you can. Early repayment penalties may apply within the term of the loan. These are loan specific and are agreed and set out in the Loan Contract.

 

Once the lawyers are satisfied and the conditions of the Loan Contract have been met, you will be required to sign the individual Loan Contracts online and complete the Security Documentation. The gross loan funds will then be available for drawdown.

 

When the loan is drawn down, we retain the equivalent of 3-21 months’ interest due on the loan. This will be held in the Interest Reserve Account and will be used to pay lenders in the event that the borrower does not make an interest payment when it falls due.

This is only a short term solution and the Interest Reserve Account must be brought back to the equivalent of 3-21 months’ interest, and all interest payments up to date. In the case of a bridging loan, we may retain, in addition, the full interest due for the term of the loan.

 

For administrative convenience, each Borrower will submit the payments due in a single payment to the Proplend Customer Funds Account, by direct debit or standing order. The payment will then be credited into the Proplend Account of each Investor and our Lender Fee deducted immediately after.

The firms who will act in relation to any particular loan will be selected from leading UK firms of RICS qualified valuers.

 

Proplend and Proplend Security Limited operates a panel of solicitors.

Proplend Security Limited’s appointed solicitors and valuers fees are paid for by the Borrower, in the same way that a lending bank would expect its fees to be paid.

Proplend will look at most types of commercial property including; office, industrial, leisure, retail, residential blocks & HMO’s, mixed use, business parks, medical and marinas in England and Wales. We do not accept loan requests secured against development projects or private residential properties.

Borrowers and Lenders have a direct relationship with direct loan contracts between the two parties.

Borrowers and Lenders should read this loan agreement carefully and where necessary, take independent professional advice.

Proplend will carry out the required know your customer and anti-money laundering checks on all Borrowers, which will require identification documents. Borrowers will be required to complete a borrower application form and provide full information about the property, the tenants, and themselves as requested by Proplend.

Based on the information provided by you, Proplend will complete an initial review of the loan request in order to determine if we believe it will be of interest to our Investors. Following this, we will issue Indicative Terms. If these are acceptable then we will request more detailed supporting information on both you, the property and the tenants. In addition a professional valuation and a report on title will be instructed.

 

Once we are satisfied with these, you will be asked to sign the Full Loan Request. Your loan will then be listed as ‘In Funding’. The loan request document plus all supporting documents including the valuation and legal report will be viewable by all prospective Investors.

 

Yes, this is agreed with the borrower and is set out in the loan contract and it will be paid from the gross loan proceeds on day of loan closing.

The funding process ends when either the funding period has expired or the loan request has been fully funded.

The interest rate is fixed for the term of the loan.

We will notify you by email as to the progress of your Loan Request.

The gross loan amount is the amount indicated on the loan request. At closing we deduct any outstanding fees due to Proplend (Arrangement Fee) and other professionals  from the gross loan amount.

 

We retain between 3-21 months’ interest due (‘Interest Reserve’) as agreed and redeem any outstanding loans that are currently secured against the property in order for Proplend Security Limited to take a 1st charge with no other charges outstanding on the property. The balance is the net loan amount available to the Borrower.

Typically when there are three months left on the loan term and assuming there are no arrears, costs or fees owing (the loan is in ‘good standing’), we will distribute to the Lenders their pro rata share of the Interest Reserve as each repayment falls due subject to a minimum 3 month reserve remains at the end of the loan term.

The balance of the Interest Reserve will be deducted from the final loan amount outstanding at loan repayment.

Happy Customers

Customer satisfaction is our major goal. See what our customers are saying about us.

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Proplend Investor

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Proplend Investor

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Mr Steven.

Proplend Investor

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Proplend Investor