|
Post by connectivelending on Feb 8, 2021 10:33:38 GMT
Dear Community,
We are excited to announce the launch of our platform, Connective Lending which took place on Friday 29th January. Connective Lending is authorised and regulated by the Financial Conduct Authority.
Our aim is to create a successful community of like-minded people looking for returns on their investments. We achieve this by lending against personal luxury assets and property.
In order to ensure our customers get the best service, we have launched our website (www.connectivelending.com) under a beta-testing-phase for an initial 3-month period. Within this time our aim is to onboard up to 500 investors. During this stage, we will be introducing a small portfolio of loans secured against luxury assets.
Over time and upon completion of our beta-testing-phase we will look to introduce property bridging loans secured via a first charge only.
Furthermore, we currently have several loan opportunities which we look forward to placing on the platform in the coming days and weeks.
At Connective Lending we have great plans which we will announce as the products become available. Our number one aim is to introduce good quality secured loans.
If you would like to find out more about our platform, you can do so by clicking here.
We look forward to answering any questions you may have.
The Connective Lending Team.
“Your capital is at risk”
“Past performance is not a reliable indicator of future results”
|
|
Nomad
Member of DD Central
Posts: 755
Likes: 513
|
Post by Nomad on Feb 8, 2021 11:06:55 GMT
Dear Community, We are excited to announce the launch of our platform, Connective Lending which took place on Friday 29th January. Connective Lending is authorised and regulated by the Financial Conduct Authority. Our aim is to create a successful community of like-minded people looking for returns on their investments. We achieve this by lending against personal luxury assets and property. In order to ensure our customers get the best service, we have launched our website (www.connectivelending.com) under a beta-testing-phase for an initial 3-month period. Within this time our aim is to onboard up to 500 investors. During this stage, we will be introducing a small portfolio of loans secured against luxury assets. Over time and upon completion of our beta-testing-phase we will look to introduce property bridging loans secured via a first charge only. Furthermore, we currently have several loan opportunities which we look forward to placing on the platform in the coming days and weeks. At Connective Lending we have great plans which we will announce as the products become available. Our number one aim is to introduce good quality secured loans. If you would like to find out more about our platform, you can do so by clicking here. We look forward to answering any questions you may have. The Connective Lending Team. “Your capital is at risk” “Past performance is not a reliable indicator of future results” Who are the principals of the company and what are their backgrounds?
|
|
iRobot
Member of DD Central
Posts: 1,680
Likes: 2,477
|
Post by iRobot on Feb 8, 2021 11:12:49 GMT
Dear Community, We are excited to announce the launch of our platform, Connective Lending which took place on Friday 29th January. Connective Lending is authorised and regulated by the Financial Conduct Authority. Our aim is to create a successful community of like-minded people looking for returns on their investments. We achieve this by lending against personal luxury assets and property. In order to ensure our customers get the best service, we have launched our website (www.connectivelending.com) under a beta-testing-phase for an initial 3-month period. Within this time our aim is to onboard up to 500 investors. During this stage, we will be introducing a small portfolio of loans secured against luxury assets. Over time and upon completion of our beta-testing-phase we will look to introduce property bridging loans secured via a first charge only. Furthermore, we currently have several loan opportunities which we look forward to placing on the platform in the coming days and weeks. At Connective Lending we have great plans which we will announce as the products become available. Our number one aim is to introduce good quality secured loans. If you would like to find out more about our platform, you can do so by clicking here. We look forward to answering any questions you may have. The Connective Lending Team. “Your capital is at risk” “Past performance is not a reliable indicator of future results” Dear connectivelending , Welcome to the forum, and for introducing yourselves to us. FYI - your " If you would like to find out more about our platform, you can do so by clicking here." doesn't contain an actionable link. In the absence of one, I will ask my first tranche of question on this thread. I hope you will answer these here for the benefit of all potential lenders. Q1 My understanding is that one of Connective Lending's founders was also a founder of Funding Secure. Is that correct? Q2 If correct, what has that individual learned from the demise of Funding Secure? (I acknowledge that the individual may not have had direct involvement at the time of Funding Secure entering administration, but nonetheless feel that the individual should have many thoughts on the matter.) Q3 In view of the many outward similarities between Connective Lending and Funding Secure (now in Administration), how does Connective Lending feel it differentiates itself operationally such that potential lenders may have confidence in Connective Lending's business model and viability going forward? Q4 Your post concludes with “Past performance is not a reliable indicator of future results” - what past performance is being referred to, please? Q5 The current Ts&Cs are seemingly neither dated nor version controlled. Can this be addressed? Q6 The current Ts&Cs state: I can find no listed fees on the website, please advise. Thank you.
|
|
|
Post by connectivelending on Feb 8, 2021 13:56:58 GMT
Dear All, We will answer the reply by Nomad here first, which will answer some of the questions that follow. We will then answer the questions from Irobot in a 2nd reply. Connective Lending has two founding Directors namely Danny Grimes and Noman Akram. My name is Danny (Daniel) Grimes and I am an experienced entrepreneur and co-owner of Connective Lending Ltd. I have owned and run a small chain of Pawnbrokers for 24 years. I have maintained the same company through more ups than downs in those years without failure. I also started a company called www.watchbuyers.co.uk which separated from Almagrove Ltd in 2014. My companies have specialised in the purchase, sale and leverage of personal assets. My partner and equal shareholder in Connective Lending Ltd is Noman Akram, a man some of you will know due to his previous venture within the P2P sector. Noman and I met after he left Funding Secure. We cannot comment on the direction of Funding Secure or any other company though what we can say is our application to become a licensed peer to peer lender began before and during the time Funding Secure went into Administration. We know that regulators, in their long and detailed scrutiny of our application, identified who we are and what we have done before. We would kindly ask you to draw your own conclusions from those facts. Since founding Connective Lending in 2018 we have been focusing on developing a business based around the directors’ direct experience of lending against specific assets and achieving full authorisation as a P2P platform. We have taken our time in strengthening our proposition and developing our model which we look to continuously improve upon internally including using feedback from our members. I entered this business with the knowledge that my experience of lending my own money and Noman's experience of P2P lending will help create an outstanding company that can be very successful with both lenders and borrower’s interests at its heart. We will always endeavour to reply to comments, and anybody is welcome to come and meet with us in Southampton post lockdown. You will only be able to judge our competency and gain trust as we develop and establish. In the meantime, please do feel free to visit our website. The website is in a Beta-Testing-Phase and we therefore ask for some patience while we iron out any bugs in the coming weeks.
|
|
rocky1
Member of DD Central
Posts: 1,138
Likes: 1,962
|
Post by rocky1 on Feb 8, 2021 15:34:49 GMT
no disrespect but wasent lack of experience in property bridging/development loans and lack of DD,no credit checks on borrowers,6 month loans that are 4 years late and the rest is history what brings CL here today.the pawn model never worked then and i dont think it will now.
|
|
|
Post by Ace on Feb 8, 2021 16:02:31 GMT
no disrespect but wasent lack of experience in property bridging/development loans and lack of DD,no credit checks on borrowers,6 month loans that are 4 years late and the rest is history what brings CL here today.the pawn model never worked then and i dont think it will now. A similar pawn model does seem to work well at Unbolted. This seems to be a new direct competitor.
|
|
|
Post by Ace on Feb 8, 2021 16:17:57 GMT
Given the link to a previous platform, it's good to see that admin fees rank behind lender's capital and interest. However, section 16's right to vary terms at will rather negates any assurances.
Also, since admin fees are applied monthly, as well as an upfront arrangement fee, how would this work in practice? E.g. if a loan defaulted after x months, would the previously paid x-1 monthly admin fees and/or arrangement fees be distributed to lenders? Or does this lender ranking entitlement only apply to recovery fees?
|
|
mrdc
Member of DD Central
Posts: 73
Likes: 33
|
Post by mrdc on Feb 8, 2021 16:18:49 GMT
Thought I would have a look. Last question of assesment ask for your net worth, never liked that so exited. Tried to sign in again to see if you could leave it blank and seem to be blocked. Ive brocken the site already
|
|
|
Post by connectivelending on Feb 8, 2021 16:26:55 GMT
Dear Community, We are excited to announce the launch of our platform, Connective Lending which took place on Friday 29th January. Connective Lending is authorised and regulated by the Financial Conduct Authority. Our aim is to create a successful community of like-minded people looking for returns on their investments. We achieve this by lending against personal luxury assets and property. In order to ensure our customers get the best service, we have launched our website (www.connectivelending.com) under a beta-testing-phase for an initial 3-month period. Within this time our aim is to onboard up to 500 investors. During this stage, we will be introducing a small portfolio of loans secured against luxury assets. Over time and upon completion of our beta-testing-phase we will look to introduce property bridging loans secured via a first charge only. Furthermore, we currently have several loan opportunities which we look forward to placing on the platform in the coming days and weeks. At Connective Lending we have great plans which we will announce as the products become available. Our number one aim is to introduce good quality secured loans. If you would like to find out more about our platform, you can do so by clicking here. We look forward to answering any questions you may have. The Connective Lending Team. “Your capital is at risk” “Past performance is not a reliable indicator of future results” Dear connectivelending , Welcome to the forum, and for introducing yourselves to us. FYI - your " If you would like to find out more about our platform, you can do so by clicking here." doesn't contain an actionable link. In the absence of one, I will ask my first tranche of question on this thread. I hope you will answer these here for the benefit of all potential lenders. Q1 My understanding is that one of Connective Lending's founders was also a founder of Funding Secure. Is that correct? Q2 If correct, what has that individual learned from the demise of Funding Secure? (I acknowledge that the individual may not have had direct involvement at the time of Funding Secure entering administration, but nonetheless feel that the individual should have many thoughts on the matter.) Q3 In view of the many outward similarities between Connective Lending and Funding Secure (now in Administration), how does Connective Lending feel it differentiates itself operationally such that potential lenders may have confidence in Connective Lending's business model and viability going forward? Q4 Your post concludes with “Past performance is not a reliable indicator of future results” - what past performance is being referred to, please? Q5 The current Ts&Cs are seemingly neither dated nor version controlled. Can this be addressed? Q6 The current Ts&Cs state: I can find no listed fees on the website, please advise. Thank you. Dear Irobot, Please find answers to your questions below. FYI - your "If you would like to find out more about our platform, you can do so by clicking here." doesn't contain an actionable link. In the absence of one, I will ask my first tranche of question on this thread. I hope you will answer these here for the benefit of all potential lenders. Apologies for this. The link to our website will be fixed very shortly if not already fixed.
Q1 My understanding is that one of Connective Lending's founders was also a founder of Funding Secure. Is that correct? That is correct. Noman Akram was the founder of Funding Secure and he left the business in January 2017.
Q2 If correct, what has that individual learned from the demise of Funding Secure? (I acknowledge that the individual may not have had direct involvement at the time of Funding Secure entering administration, but nonetheless feel that the individual should have many thoughts on the matter.) We have referred to this in our first reply and cannot comment further at this time.
Q3 In view of the many outward similarities between Connective Lending and Funding Secure (now in Administration), how does Connective Lending feel it differentiates itself operationally such that potential lenders may have confidence in Connective Lending's business model and viability going forward? It is true that similarities can be drawn upon however; our focus has been to improve on areas based on key people's knowledge and expertise.
Connective Lending is built on a team who bring knowledge within their different areas of expertise, including the assets we lend against. Daniel Grimes heads our personal asset lending and has over 24 years of experience gained within the pawnbroking industry and has experience of valuing assets of both low end and luxury high-end. Kristian heads our property lending and has 18 years' experience, the majority of which spent around underwriting property loans. He has also been key in setting up new relationships to strengthen our model.
Our lending model has been adapted based on our approach to provide the lenders more flexibility when investing. Each of our loans will be independently valued in-house and by various experts in that field. Each loan is then broken down into three tranches with each tranche being given a different LTV and priority. Lenders can then choose the level of risk that they are comfortable with based on the LTV. These tranches range from a maximum LTV of 70% downwards meaning that each investor can spread their risk.
We also look to continue our development by recruiting people to build on our expertise and are already involved in constructive discussions with individuals to expand our property team.
Q4 Your post concludes with “Past performance is not a reliable indicator of future results” - what past performance is being referred to, please? This a regulatory warning that must be displayed on certain messages and marketing. Which has now been placed within our signature box below.
Q5 The current Ts&Cs are seemingly neither dated nor version controlled. Can this be addressed? Q6 The current Ts&Cs state: 9. FEES AND CHARGES 9.1 Connective Lending charges Borrowers a one-off arrangement fee and a monthly administration fee on every Loan depending on the amount of the loan. The rate charged is for the duration of the loan. 9.2 We have the right to change our administration fee without prior notice. Fees are as listed on our website. 9.3 Connective Lending does not charge Lenders any fees or commissions. I can find no listed fees on the website, please advise. Each of our property loans are looked at on an individual basis but we expect them to fall between 0.85% to 1.12% per month. We also charge an arrangement fee on our property loans of 2%.
Our pawnbroking loans are offered from 1.5% to 5% per month. A rate card is viewable under the FAQ section for Borrowers titled ‘How much will it cost’.
|
|
|
Post by connectivelending on Feb 8, 2021 16:32:29 GMT
no disrespect but wasent lack of experience in property bridging/development loans and lack of DD,no credit checks on borrowers,6 month loans that are 4 years late and the rest is history what brings CL here today.the pawn model never worked then and i dont think it will now. Dear Rocky1, The difference, mainly, in terms of personal asset loans is that Daniel Grimes has run a profitable pawnbroking business since 1997. In terms of property lending we will only be offering loans with a first charge. only, on investment property. We do hope we can change your mind in coming months and years. Kind regards Connective Lending
|
|
|
Post by connectivelending on Feb 8, 2021 16:51:28 GMT
Given the link to a previous platform, it's good to see that admin fees rank behind lender's capital and interest. However, section 16's right to vary terms at will rather negates any assurances. Also, since admin fees are applied monthly, as well as an upfront arrangement fee, how would this work in practice? E.g. if a loan defaulted after x months, would the previously paid x-1 monthly admin fees and/or arrangement fees be distributed to lenders? Or does this lender ranking entitlement only apply to recovery fees? Dear Ace, We can confirm that arrangement fees paid upfront, for property loans, are not distributed to lenders in the event of a default. Admin fees, however, are only paid to the platform after lenders have been paid back. This remains the fact even when a loan goes into default. This should be explained more clearly in section 7.2 in our terms and conditions. Kind regards Connective Lending
|
|
Nomad
Member of DD Central
Posts: 755
Likes: 513
|
Post by Nomad on Feb 9, 2021 8:45:31 GMT
Thought I would have a look. Last question of assessment asks for your net worth, never liked that so exited. Tried to sign in again to see if you could leave it blank and seem to be blocked. Ive broken the site already I got one answer wrong on the suitability test and am now blocked from logging in. Apparently I will receive an email after 24 hours giving me a second chance. Can I be bothered....?
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Feb 9, 2021 10:27:48 GMT
Thought I would have a look. Last question of assesment ask for your net worth, never liked that so exited. Tried to sign in again to see if you could leave it blank and seem to be blocked. Ive brocken the site already Possibly a similar problem, I cannot truthfully select any investor type option because I haven't 'signed' any certification, but have more than 10% invested so cannot qualify as retail. Stalemate. T&Cs need formatting to be readable, centre is not good for text, the last short half a sentence is in the middle of the page each time!
|
|
james100
Member of DD Central
Posts: 1,084
Likes: 1,287
|
Post by james100 on Feb 9, 2021 18:02:33 GMT
connectivelending Can you expand on this remark within your Due Diligence section (Personal Asset Loans) please: "During the course of our due diligence, we will ascertain proof-of-ownership for the pledged asset." Question: What will be done, by whom, and if they get it wrong will your insurance cover any consequences of the error? Edit: I've just found the section below on your website (my emphasis added) so please could you also elaborate on the questioning tactics referred to here. "As part of our due diligence process, we will request proof of ownership by obtaining receipts, insurance documents, assess if the item is in its original packaging, V5 documents (vehicles) and other such documentation to help prove the asset belongs to the borrower. Where this cannot be obtained, we question the borrower to determine if they are the true owner of the asset being pledged."
|
|
|
Post by connectivelending on Feb 10, 2021 10:06:26 GMT
connectivelending Can you expand on this remark within your Due Diligence section (Personal Asset Loans) please: "During the course of our due diligence, we will ascertain proof-of-ownership for the pledged asset." Question: What will be done, by whom, and if they get it wrong will your insurance cover any consequences of the error? Edit: I've just found the section below on your website (my emphasis added) so please could you also elaborate on the questioning tactics referred to here. "As part of our due diligence process, we will request proof of ownership by obtaining receipts, insurance documents, assess if the item is in its original packaging, V5 documents (vehicles) and other such documentation to help prove the asset belongs to the borrower. Where this cannot be obtained, we question the borrower to determine if they are the true owner of the asset being pledged." Dear James100, We cannot give a blanket answer to how we would establish true ownership as each case could be very different. There are general questions we ask during discussions with the borrower such as, how they came to own the asset, if the item has its original packaging or certification, can they provide proof of payment and/or invoices. With certain assets provenance is a key requirement to maintaining value. In certain situations, such as a borrower wishing to lend against a very old watch, for example with receipts long since gone, questions and evidence could be sought to establish truth. We would not however consider an item in recent times where proof of purchase cannot be established. We do have defective title cover included in our commercial insurance policy as an added assurance, however, it would not be our intention to create the need to use this. Our head of Pawnbroking has almost 25 years of experience in this area. As mentioned we do have commercial insurance in place for defective title plus all of the information gathered will be available on the platform for lenders to make educated decisions as to whether they wish in to invest in a loan. Kind regards
|
|