London, 26 May 2016: Proplend Ltd, the UK’s specialist in commercial property peer-to-peer lending and pioneer of the P2P Loan Tranche Model, are pleased to announce that they have reduced the minimum loan investment amount to £1,000 with immediate effect.
Proplend anticipates that the reduction from £5,000 to £1,000 will broaden their investor base through a lower entry level and enable existing investors to further diversify their investments on the platform.
To kick start the new £1,000 minimum investment, a limited number of £1,000 loan parts have been made immediately available on the Proplend Loan Exchange (PLE). Two of our previous loans, Newcastle Business Park and Croydon Office Block, offer investors returns from 5.93% to 9.75% pa (before fees, bad debts and taxes), across the three tranches. New loan investment opportunities will also be listed on the platform in the coming weeks.
Brian Bartaby, Founder & CEO, commented: “This change has been primarily driven by investor demand. We were being approached by lenders who were very attracted to the stable returns offered from investing in commercial property backed P2P loans through the Proplend platform, but who found the initial investment level of £5,000 too high. Separately, we were also conscious that looking forward to investing within an ISA wrapper, the £5,000 minimum investment level would not offer investors an acceptable level of portfolio diversification. We look forward to welcoming a broader base of investors to Proplend and will continue to offer them attractive rates of asset-backed, risk-adjusted returns.”
Moving forward, all new loans will be split into £1,000 loan parts. Investors can access attractive rates of risk-adjusted returns from as little as £1,000 and thereafter in £1,000 increments. The maximum investment in any particular loan is limited only by the amount remaining; loans vary in size, loan to value, term and location. Investors can choose, on a deal by deal basis, which loan to invest into and then which loan-to-value based tranche of that loan.
Proplend is an online marketplace for secured commercial mortgages, where all the loans are supported by a registered legal first charge on an income producing commercial property. Proplend makes it possible for interest rates being offered by borrowers to be earned directly by lenders, circumventing the traditional banking system and creating a new asset class. Proplend allows private individuals and institutions direct access to commercial real estate lending opportunities. Borrowers gain access to funding which is not otherwise currently available and lenders get the opportunity to earn risk adjusted monthly income.
Proplend’s simple, secure and transparent platform connects investors directly to borrowers with loans secured against UK income producing Commercial Property. Proplend is dedicated to transparency and always ensures that investors have all the information they require to make informed investment decisions. Investors lend on a deal by deal basis, choosing their Loan Investments from Loans listed on the Proplend Loan Exchange or Loans In Funding. Proplend was the first UK peer-to-peer lending platform to offer different loans tranches, giving investors the ability to select a level based on their risk and return profile. To learn more visit www.proplend.com.
For further information on Proplend, please contact:
CEO & Founder
Tel: 0203 397 8290
Marketing & PR
Tel: 0203 397 8290