These Terms And Conditions Explain The Process Of Lending Money Through Simple Backing (“The Firm”) And Govern Your Relationship With The Firm.
These Lenders Terms and Conditions are to be used as a guide only.
- By acknowledging/signing these Terms and Conditions you agree to be bound by them.
- This document should be read in conjunction with our other documents which set out the basis of your and our dealings with each other, and in particular:
- References to “we”, “us” and “our” are to be taken as referring to the Firm. References to “you” and “your” relate to you as an individual or anybody for whom you are acting, whether a partnership, an LLP or limited company.
- References to the Security Trustee is to Simple Property Limited.
- References to Borrower are to a potential Borrower using our services from time to time.
- References to Loan Agreement and Security Documents are to individual documents entered into during the process of lending to a Borrower.
- Whether you are acting on your own behalf or on behalf of a partnership, Limited Liability Partnership (LLP) or a Limited Company, by using the services provided by the Firm then you confirm that you have read and understood these term and conditions (or subsequently updated versions). In addition, if you are acting for a partnership, LLP or Limited Company, you confirm you are authorised to act on their behalf.
- If, after reading these Terms and Conditions, you feel are not able to act upon them, or be bound by them, then you should not proceed to accessing our services.
- Whilst this document sets out the basis of our relationship the Loan Agreement will cover more specific terms in relation to the loan being granted to the Borrower. In cases of a conflict between the two documents, the Loan Agreement will prevail.
2. Lender Acceptance Terms
- To become a lender with us the following criteria must be met:
- you must be an individual, LLP, or Limited Company;
- if you are an individual you must be over 18 years of age;
- you must have and maintain a UK bank or building society account; and
- you do not have a Consumer Credit Licence which would restrict your lending activities. It is up to you to take appropriate advice if you hold a Consumer Credit Licence.
- Searches with credit reference agencies will be undertaken to verify the identity of all Lenders and relevant connected persons such as company directors.
- During the initial Lender registration process you warrant that:
- the information you provide to the Firm is true and accurate;
- you are not aware of any circumstances, events or proceedings which could result in you being unable to fulfil your lending commitments; and
- you will inform us of any circumstances or events that occur which could result in you being unable to fulfil your lending commitments.
- All money held by us on your behalf pending allocation to a successful Borrower will be held in a separate client account.
3. User Access Security
- Upon acceptance as a Lender, as well as providing an email address, physical mailing address and contact telephone numbers, you may be asked to provide answers to additional questions in order to assist in identifying you.
- If you authorise another person to act on your behalf you will be responsible for their discussions and actions with us.
- We maintain the right not to deal with anyone whom we believe is not you, not acting with your authority or we suspect that potentially illegal or fraudulent activities are being attempted or are being carried out.
- You must immediately notify us if you suspect or discover that your identity details have been compromised. Before further actions or decisions can be taken we will re-verify your identity.
4. Loan Application Review and Pledge Process
- All loan applications will be subjected to four levels of assessment:
- Stage 1: An initial review is conducted using the data and information submitted electronically via a Loan Application Form. If the application does not fit our credit policy it will be declined and the applicant advised. If the application satisfies the initial review it proceeds to the next stage.
- Stage 2: A telephone call is made by us to the applicant to discuss the application. If we are satisfied with the call the application progresses to the next stage.
- Stage 3: A meeting is arranged and the applicant is interviewed face-to-face to assess the people behind the proposal and to collect any further information which may or may not support the application. If we are satisfied with the interview the application proceeds to the next stage.
- Stage 4: The application will undergo a final review and recommendation to either support or decline the request.
- All documentation provided is for guidance and Lenders must come to their own conclusion in relation to the perceived level of risk they are being asked to take. Whilst we will endeavour to assess all aspects of an application ultimate responsibility as to whether to lend or not lies with the Lender.
- Lenders will review the Borrower’s application and place an offer of funding (a “pledge”, which is subject to the minimum pledge amount of £5,000).
- Pledging is made by email on a ‘first-come-first-served’ basis. The pledges will be received and determined in chronological order of receipt by the Firm. In certain cases Lenders may not be successful due to sufficient pledges having already been received in relation to particular loans. They may also be investing less than the £5,000 pledged amount to take the project up to the full funding amount.
- All loan applications must be achieved in full. Partially funded loans will not be drawn down.
- Once the loan application amount is achieved, the pledge process is closed, all successful Lenders are notified and are deemed to immediately agree to become parties to the Loan Agreement subject to the Borrower fulfilling its obligations.
- Once a pledge is made by the Lender it cannot be withdrawn unless:
- the pledging process has resulted in an over-subscription and the Lender’s pledge was not successful; or
- the loan was not fully funded in which case all pledges are cancelled; or
- the Borrower declines the offer or fails to complete the loan.
5. The Security Trustee
- Given the way in which the pledging process operates and the possibility that a loan might involve many Lenders, it is not practical for each Lender to sign each Loan Agreement or Security Document. We have therefore made arrangements for an independent company to act as Security Trustee and agent and sign documentation on behalf of each Lender when a loan is made. This also has the secondary effect of keeping the identity of Lenders confidential.
- Each Lender appoints the Security Trustee on the terms of a security trust deed to act as its agent in connection with any loan. Each Lender agrees that they will not take any action or commence any process against any Borrower in their own name but will act only through the Security Trustee who shall be entitled to act as provided for in these Terms and Conditions.
- The Security Trustee’s duties under the Loan Agreement and Security Documents are solely administrative in nature. The Security Trustee has no obligations of any kind to any party under or in connection with the Loan Agreement.
- Each Lender authorises The Security Trustee to exercise the rights, powers, authorities and discretions specifically given to the Security Trustee under or in connection with the documents together with any other incidental rights, powers, authorities and discretions.
- Each Lender agrees that the Security Trustee will hold the benefit of any security created on trust for the Lenders involved in the related Loan.
- The Security Trustee shall forward to each Lender electronic copies of any documents requested or copies of any documents which are delivered to the Security Trustee. The Security Trustee is not obliged to review or check the adequacy, accuracy or completeness of any documents it forwards to a Lender. This is the Borrower’s responsibility.
- If the Security Trustee receives notification of a Default or Event of Default (as defined in any Loan Agreement) it shall promptly notify the Lenders which are involved in that particular loan.
- If the Security Trustee is aware of a default in the payment of any principal, interest or fee payable to a Lender it shall promptly notify the Lenders involved in that particular loan.
- The Security Trustee may rely on any representation, notice or documents believed by it to be genuine, correct and appropriately authorised and any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.
- The Security Trustee may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts, providing it has the means to pay for such services. The Security Trustee will consult with the relevant Lenders regarding the method of underwriting such costs before any are incurred and in most circumstances costs will be met by the relevant Borrower.
- The Security Trustee may act in relation to the Loan Agreement through its personnel and agents.
- The Security Trustee shall have absolute discretion in the exercise of any right, power or authority vested in it as Security Trustee and agent in accordance with the terms of the Loan Agreement and any Security Documents.
- Each Lender authorises the Security Trustee to act or refrain from acting in respect of:
- day to day management of the loan including, without limitation, dealing with drawdown notices, certificates of compliance and the provision of financial information from the Borrower in accordance with the Loan Agreement;
- answering any questions raised by the Borrower;
- administration relating to late payments due under the Loan Agreement by the issuing of standard letters; and
- amending the terms of the any documents providing such amendments are not to the interest rate payable, the term of the loan, the repayment schedule or the security to be granted.
6. Loan Drawdown
- When requested by the Firm, Lenders will transfer their pledged amount to be held by us in a client account until required for drawdown by the Borrower.
- Once the Loan Agreement and Security Documents are executed and received by the Firm from both Lenders and Borrower, and relevant arrangement fees paid by the Borrower, the loan will be drawn down and transferred to the Borrower’s bank account.
- As part of the on-boarding process, you will be given details of how to transfer funds into our client account where money is held on your behalf. We will only transfer funds back to the bank account from which they came except by special arrangement and having first satisfied ourselves that the reasons for the request are reasonable and legal.
7. Lender Fees
- No fees are payable to register as a Lender or to pledge to contribute to a loan application. All costs in relation to the credit assessment process are paid by the Borrower.
8. Interest Rates
- Interest rates are fixed at the outset and remain for the term of the loan.
- The interest rate is advised by the borrower. Simple Backing will also calculate a CRSB rate based upon the Credit Risk Score Band (CRSB) which is assessed by us based on the risk posed by lending to the Borrower. Each CRSB reflects the appropriate level of risk/reward Lenders are being asked to take:
- A – Low Risk;
- B – Mild Risk;
- C – Moderate Risk;
- D – High Risk
- Band A carries the lowest interest rate with Band D carrying the highest interest rate.
- Interest rates may change from time to time in line with market conditions and current rates. Any change in interest rates will not affect loans already drawn down or in the process of review.
- Interest on each Lender’s pledged amount will be earned from the date the loan is drawn down and not from the date the pledging has closed.
9. Interest and Capital Repayment Process
- The repayment schedule is set out in the Loan Agreement.
- Repayment of each Lender’s pledge amount and interest payable in that month will be credited to the Lender’s account with us upon receipt from the Borrower.
- Only amounts remitted by Borrowers will be credited to each Lender’s account; if a Borrower’s repayment is missed then no funds will be allocated the to the Lender’s account.
- Funds accumulated in our client account on behalf of the Lender will be remitted to the Lender’s nominated UK bank account [monthly/quarterly] or as agreed.
- All repayments in respect of interest will be made on a gross basis i.e. without the deduction of income tax but less any fee payable in accordance with clause 7.3. It is up to Lenders to declare the interest they have earned.
10. Missed Repayments and Loans in Default
- Lending money comes with its risks and Lenders acknowledge that whilst we will make every reasonable effort to collect missed payments and to ensure full repayment there will be cases where this is not possible.
- Where a Borrower misses a payment or makes only a partial repayment, we or an agent acting on our behalf, will contact the Borrower to collect the due payment.
- If within a reasonable period of time the overdue payments are not made we will refer the case to a debt collection agency. All additional fees incurred in the recovery of any arrears will be payable by the Borrower.
- If the Borrower falls two or more months in arrears then the loan will be in default and the Debt Collector can be instructed to collect the whole loan amount.
11. Security and Recovery of Debts
- If the debt collection agency has failed to collect the loan outstanding we will recommend that you enforce any security held to secure the loan.
- Where there is security in support of a loan you accept that the enforceability of the security shall be on the basis of normal legal risks, challenges and limitations that you may face.
- You acknowledge that there is a risk of losing amounts loaned, and subsequent interest, if a Borrower fails to keep up repayments.
- We perform an administrative role in bringing Lenders and Borrowers together and to assist in facilitating making loans and collecting repayments. By acting on your behalf you acknowledge that we accept no liability for any outstanding Borrower payments. Lenders acknowledge that they will continue to be liable for and responsible for the rights and obligations under the Loan Agreement.
12. Ending Your Participation
- If you no longer wish to be a Lender, and you have no loans currently outstanding, then you inform us and we will archive your details.
- If you have outstanding loans you can either:
- let the loans run to their maturity date, or
- assign your loan(s) to other Lenders but only if other Lenders can be found. A fee will be payable to cover the administrative cost of this exercise.
- We may also terminate your participation as a Lender in respect of new loan applications for any reason. This may, but not exclusively, include:
- any breach by you in these Terms and Conditions or Loan Agreement
- you are suspected of committed fraud, money laundering or other criminal activities
- any activity which could bring our reputation and that of other Lenders in to disrepute
If you have a complaint about our service, please refer to our Complaints Procedure.
14. Other Terms
- We do not provide investment advice. Information made available either directly to you or via our website should not be construed as formal advice or recommendation as the suitability of a loan application. If you are in any doubt about supporting any loan application then we recommend you seek independent advice.
- We accept no responsibility for any actions you may or may not take in respect of the content on our website or information you may obtain from us.
- Whilst we will endeavour to take reasonable steps to check the accuracy of information provided to us by Borrowers we make no representation or warranty in relation to the loan applications presented by us.
- When supplying or uploading information to us you undertake that you have taken all reasonable precautions to ensure the files are virus free.
- We take all reasonable precautions to protect our systems and computers from viruses but if they do occur we accept no liability for them. It is your responsibility to install suitable anti-virus programmes on your computer.
- Our website may contain links to third party websites and whilst we take precautions to ensure we only link with reputable sites we accept no responsibility or liability for any material presented or contained on those websites.
- You acknowledge and agree that we do not provide financial, accounting or legal advice in respect of the services we supply. If you have any questions about the products or services you should seek independent advice.
- We own all present and future copyright, trade marks and designs (registered and unregistered) and intellectual property rights.
- Any breach by you of these Terms and Conditions, the Loan Agreement, or any act of fraud committed by you will result in your being liable to us for any subsequent loss or damage.
- We will not be liable to you for any loss or damage you may suffer by using any of our services except where the losses or damages have arisen from our breach by us of these Terms and Conditions. We will not be held responsible where any breach was as a result of events or circumstances outside of our control. Our liability will be limited to the amount of the loan or £2,500 whichever is the lowest.
- From time to time we may amend or vary these Terms and Conditions and will inform you when we do so. We recommend that you review these on a regular basis. You agree to be bound by these Terms and Conditions as subsequently amended and updated.
- If any part of these Terms and Conditions is found to be illegal, invalid or unenforceable by any court or regulatory authority, the remainder shall continue in full force and effect. No single or partial exercise, or failure or delay in exercising any right, power or remedy by either you or us shall constitute a waiver by us or preclude any further exercise of that, or any right, power or remedy arising under this Terms and Conditions
- These terms and conditions shall remain in force after the termination of the agreement between us.
- These Terms and Conditions are governed by English and Welsh law and the courts of England and Wales will have non-exclusive jurisdiction to settle any disputes that may arise in relation to this Terms and Conditions.