CrowdProperty to Launch 3 Projects Next Week

Hi jj and ace,


Thank you for your responses.


To clarify, as you know, we offer up to 8% per annum from the loan start date.


Our pledging system is in place so that lenders do not have to have funds readily available in their account in order to pledge towards a project. We strive to request funds at the optimal time for both lenders and borrowers, to ensure that the deadline for funds to be transferred is as close to the loan completion, and subsequently loan start, date as possible.


However, as you know, circumstances can change in property right up to the loan start date.


First and foremost, there is work that must be completed that can only commence once the money has been raised. As this is a property transaction, a huge amount of work is involved. This includes getting the security agreement in place (we have first legal charge over every property project on our platform), finalising the land registry and the legal process. There are also a number of third parties involved, including the borrower, the vendor and solicitors.


We work incredibly hard to coordinate these variables as quickly as possible. However, as is the case in property, they can all change right up to the last minute.


Furthermore, we must call for funds a few days prior to the agreed loan start date. This is as there can be delays in receiving all pledged funds from our many lenders per project, yet we must ensure the borrower is provided with the full amount agreed at the time agreed for loan drawdown, as there is typically a transaction involved.


Having analysed our data for project launches over the past 3 months, on average the time between the deadline for fund transfer and the loan start date has been 6.2 days. The average time from pledge creation to the deadline for funds to be transferred was 16.2 days (18.2 days if you include the H***C**** project, which was cancelled prior to loan completion).


We appreciate the lag time between the transfer deadline and loan start date is not ideal. We are working hard to reduce the length of this process as much as possible, however as mentioned previously, we are dependent on third parties and numerous, highly-important transactions running smoothly.


It is worth mentioning that we communicate information regarding loan repayment with lenders for individual projects. Therefore, lag times can be reduced in future by knowing exactly when you are due for repayment on a certain project, and knowing exactly when funds will be required for a project you hope to pledge towards.


With regard to the H***C**** loan, unfortunately, we felt the need to cancel this loan post launch prior to the project starting. Security of lenders’ funds is our upmost priority, and therefore we will always respond with appropriate caution. We have been very open and transparent, as always, with the lenders for this project regarding the reasons behind our decision, and have received very positive feedback; they understand that we operate in their best interests. We aim to return funds to lenders as soon as possible; on this occasion, funds were returned to lenders wallets 2 working days following the cancellation of the loan.


Safeguarding our lenders funds is our number one priority as we work hard to maintain our 100% payback track record.


I hope this makes our process slightly more clear. Any other questions please let me know. 

The CrowdProperty Team