Auto Invest terms and conditions (Terms and Conditions) explain the process of lending money through Jark-2 Ltd (“Sourced Capital”) and govern your relationship with Sourced Capital utilising our Auto Invest service.


  1. Introduction

1.1. By acknowledging/signing these Terms and Conditions you agree to be bound by them.

1.2. 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:


Lenders Terms and Conditions –

Risk Statement –

Website Terms of Use –

Privacy Policy –


1.3. References to “we”, “us” and “our” are to be taken as referring to Sourced Capital. 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.

1.4. We are an authorised representative (reference number 826510) of Limited (our “Principal”), who is authorised by the Financial Conduct Authority under firm registration number 656344 (

1.5. References to the Security Trustee is to Jark Security Trustee Limited.

1.6. References to Borrower are to a potential and actual  Borrower using our services from time to time.

1.7. References to Loan Agreement and Security Documents are to individual documents entered into during the process of lending to a Borrower.

1.8. 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 Sourced Capital 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.

1.9. 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.

1.10. Whilst this document sets out the basis of our relationship with you, the Loan Agreement will cover more specific terms and conditions in relation to the loan being granted to the Borrower. In cases of a conflict between the two documents, the Loan Agreement will prevail.

1.11. These terms and conditions set out the terms on which we will provide the Auto-Invest Service and constitute our agreement with you as a lender.

1.12. These Auto Invest terms are in addition to the terms and conditions relating to your use of our platform, and to the extent there is a conflict between these terms and conditions and our standard terms and conditions, these terms and conditions shall take precedence but not over the loan agreement.

1.13. If you wish to use the Auto-Invest Service as a Lender, you must comply with these terms and conditions.


  1. Becoming an Auto Invest Lender

2.1. You can register as a Lender by opening an online account. Our use of the personal details you provide through the registration and investment process is subject to the terms of our privacy policy and website terms and conditions.

2.2. The minimum investment and account balance for the “Pro” and “Plus” Auto Invest accounts is £250.00, the minimum investment for the “Premier” Auto Invest account is £5,000.00. We may

increase the minimum account balance requirement at any time upon providing you with one month’s prior written notice.

2.3. As part of our FCA requirements, you will be required to undergo an assessment of your experience and knowledge (in peer to peer operations and products) prior to investing. You will also be required to classify your investor status, e.g. ‘High Net Worth’, ‘Sophisticated’ or ‘Restricted/Retail’.

2.4. If we accept your application, we will provide you with your account details and the loans comprising your investment may be selected by Sourced Capital from the range of the loans advertised on our Site from time to time, including bridging loans and property development loans.

2.5. We may accept or reject applications to create an account at our absolute discretion.

2.6. The minimum term for all Auto Invest investments is 12-months and you may not withdraw

funds during this timeframe. After the expiry of the minimum term, 30 days written notice is required for the return of capital (subject to our terms). Please email if you wish to give notice after the minimum term has expired. Subject to our terms, your capital will be repaid by the end of the 30-day notice period, and your interest will be calculated up to but not including the date capital is repaid.


  1. Our Auto Invest Service

3.1. The Auto-Invest Service is a service which enables you to view the breakdown of your cash and investments held on the Sourced Capital platform. We may add and remove Loans to and from your

Portfolio from time to time, and by accepting these P2P Terms, you authorise us to transact in P2P Loans on that basis as your agent.

3.2. Your money will be used to fund individual Peer to Peer Loans and/or to fund loans to property developers, in accordance with our underwriting processes, which will be transferred to you and held within your Auto-Invest Portfolio. We take steps to achieve diversification as set out in these Terms.

3.3. As part of the Auto-Invest Service, we shall allocate your funds that you set aside to the mandate for the auto-invest account. Your funds will only be allocated to loans that match the mandated criteria. We aim to  diversifying your portfolio as far as is practicable on an ongoing basis, in order to give you exposure to a range of Projects and Borrowers as new opportunities arise.

3.4 Sourced Capital operates three levels of risk-based investment in our ‘Auto Invest’ product; “Pro” “Plus” and “Premier”.  This allows investors to choose the level of risk they are comfortable with.


Sourced Capital Auto-Invest (Pro) pays a target rate of 6% p.a. Interest is paid annually.

The maximum LTV or GDV (whichever is higher) for this product is 60%.

The average Loan to Value in Bridging loans or Gross Development Value in

Development loans is 55%. Interest can be compounded or withdrawn.


Sourced Capital Auto-Invest (Plus) Product pays a target rate of 8% p.a. Interest is paid annually.

The maximum LTV or GDV (whichever is higher) for this product is 65%.

The average Loan to Value in Bridging loans or Gross Development Value in

Development loans is 60%.  Interest can be compounded or withdrawn.


Sourced Capital Auto-Invest (Premier) Product pays a target rate of 10% p.a. Interest is paid annually.  The maximum LTV or GDV (whichever is higher) for this product is 70%.

The average Loan to Value in Bridging loans or Gross Development Value in

Development loans is 65%.  Interest can be compounded or withdrawn.


All target rates above are subject to change and are target rates only.  No returns are guaranteed. We will notify any current investors of changes to the target interest rate where they are impacted by such changes. Each “Pro””Plus” and “Premier” will operate within the same overall terms but with some minor differences to reflect the risks involved.

3.5. The Auto-Invest product is SIPP (Self-Invested Personal Pension), SSAS (Small Self-Administrated Scheme) and IF ISA (Innovative Finance ISA) eligible. By investing in the ‘Auto-Invest’ product and

electing to use either a SIPP, SSAS or IF ISA, you confirm you are happy to operate under both our ‘Auto-Invest terms and conditions’ (this document) as well as the relevant product terms and conditions for either ‘IF ISAs’ or ‘SIPPs’, ‘SSASs’. Any investors using the ‘IF

ISA’ wrapper must be UK residents.

3.6. If the account you hold with us is in a company name, you cannot invest in an IF ISA through it as IF ISAs can only be held in individual names.  You would need to open a new personal account with us and apply for an IF ISA via this.


  1. Interest Payments

4.1. All interest payments are made annually from date of drawdown and credited to your online wallet.

4.2. The target interest rate quoted is not guaranteed and may be subject to a lesser or zero interest rate should any form of loss be made on a loan or loans you are invested in.

4.3. All interest is paid gross and investors are responsible for their own tax liability.


  1. Withdrawals/Selling Sourced Capital Loans

5.1. As far as is practicable, we will diversify your Auto-Invest Portfolio on your behalf across Loans with different maturity dates.

5.2. If, at any time, after the expiry of the Minimum Term, you wish to sell some or all your Auto-Invest Portfolio, you may request to do so through your account. You will not be able to sell individual Loans but will be able to request to sell all or a specified proportion of all Loans within your Auto-Invest Portfolio. If your P2P Loan is sold, you will receive the capital and interest repayment.

5.3. If you request to sell all or a proportion of your Auto-Invest Portfolio, we will attempt to realise your Auto-Invest Portfolio by finding replacement P2P Lenders to transfer your P2P Loans to. We cannot guarantee that it will be possible to find a buyer for your Loans, which will depend on market conditions, so you may have to wait until some or all of your Loans expire, and the Borrower repays you. Additionally, any loans in default cannot be sold, and return of associated funds will be subject to our terms and conditions.  Therefore, whilst the minimum Auto Invest individual investment term is 12 months, it may take longer to realise some or all of the loans in your portfolio and pay you the proceeds.

5.4. We may, in our absolute discretion, grant a request by you to terminate your Auto Invest investment within the minimum 12-month period, and if we do so, you shall not be entitled to any interest that has accrued at the date of such termination.

If we have paid interest to you in advance, you must repay all such interest to us at the point of termination.

5.5. Requests from multiple P2P Lenders to sell interests in Auto-Invest Portfolios containing Loans will be processed in the order we receive the requests.

5.6. In order to protect the interests of new Lenders, we will not sell any component of your Auto-Invest Portfolio which is in default.

5.7. The sale price for a portion of a Loan will be equal to the outstanding capital due on the Loan at the time of sale. Interest will only be payable on the sale.


  1. Security and Payments Following Default

6.1. Sourced Capital carry out credit assessments on all Borrowers before approving their Loan application. The Borrower will provide security in respect of each loan by granting a legal charge over property of enough value as is necessary to meet our lending criteria for each Auto Invest Product. We may also seek personal or corporate guarantees, where appropriate. The Security will be held on trust by the Security Trustee for the benefit of the Lenders and for our own benefit.

6.2. If a Borrower defaults on a Loan and we are unable to recover the full amounts due from the Borrower in respect of interest and capital, the proceeds of recovery, net of any necessary third-party costs associated with such recovery, the Security Trustee shall apply the proceeds in the following order:

  1. a) first, for the benefit of Lenders in paying any capital due under the Loan Agreements;
  2. b) second, for the benefit of the Lenders in paying any interest due under the Loan Agreements; and c) third, for the benefit of Sourced Capital in respect of any fees or administration expenses owed.


  1. Portfolio Management

7.1. By opening your account and indicating your acceptance to these Terms and Conditions, you

grant us full authority to act as your agent in entering into Contracts of Transfer, on a periodic basis, in order to enter into Loan Agreements and build your Auto-Invest Portfolio. You also grant us authority to manage the Loans in your Auto Invest Portfolio and without prior reference to you, provided that our management activities are in accordance with these Terms and Conditions.


  1. The Applicable Rate

8.1. We are continually improving existing products and creating new products. The rate available to you when you open your account is shown on our platform. Available rates may vary from time to time.

8.2. If you invest additional funds at different times, the rates published at the time of such additional investments will apply to the additional funds.  If we vary the rate applicable to a particular auto-invest product, we reserve the right to close that product and open a new product at a target new rate. Additional funds will then be placed in the new product. Existing funds will remain in the original product at the original target rate.


  1. Your Money

9.1. You will be required to transfer your loan commitments into your account before you can enter any Loan.

9.2. We will claim and account for all repayments, interest and other payments or entitlements received and due to you and credit them to your account. In most instances, we will not mix money in your account or the Security Trustee’s account with our own money, other than fees and charges that are due to us out of your Auto-Invest Portfolio. The name of your account and the Security Trustee’s account shall make it clear that they are held for the benefit of our clients and that the

proceeds of the account should not be paid out to our general creditors in the event

of our insolvency.

9.3. Any fees, charges or taxes we are legally required to deduct will be deducted before paying the net proceeds of any amounts due to you into your Nominated Bank Account. Where we make a tax deduction (or any payment required in connection with that tax deduction) which is required under the relevant tax law (including withholding of the basic rate of income tax), we will provide you with a statement (or other reasonably satisfactory evidence) that such tax deduction has been made or an appropriate payment has been made to the relevant tax authority. As a rule returns are paid gross and investors are responsible for their own tax liability.

9.4. After termination of your account, we will repay all sums due to you into your Nominated Bank Account. If we are unable to trace you to make such payment within 6 years, having made reasonable attempts to do so, we may pay your money to a registered charity of our choosing.

9.5. If you wish to change your Nominated Bank Account, you may only do so to another account in your name with a bank or building society based in the UK or in another country in our absolute discretion.


  1. Cooling Off Period

You have a cooling off period of 14 days where you can request the return of your money and we will return it to you as quickly as possible. If you exercise this option, you will receive no interest.  Please email if you wish to exit within this timeframe.


  1. Terminating Your Account

11.1. You may give us not less than the Minimum Written Notice Period after the minimum 12-month investment to terminate your account. Such notice will not entitle you to withdraw from the Loans to which you are committed unless we are able to sell your Auto-Invest Portfolio.

On receiving a notice to withdraw, we may pay out all outstanding balances at any time within thirty (30) calendar days of receiving such notice, and interest will stop accruing and shall no longer be payable from the date of such repayment.

11.2. We may, at any time and at our discretion, prevent you from committing funds to new or existing loans.

11.3. We may, at our sole discretion, at any time after three months from the date of investment, repay you all or part of any loan commitment or investment you have made upon giving you thirty days’ written notice.

11.4. We may, where we believe it to be desirable for legal or regulatory reasons or upon giving you Minimum Written Notice Period for any other objective reason, attempt to wind up your existing Auto-Invest Portfolio by selling your Loan commitments to alternative Lenders.

11.5. We may settle any Loan commitment at any time after notice is provided and interest shall stop accruing on the date such repayment is made.

11.6. After all outstanding transactions have been completed, we will provide you with a closing statement detailing the interest paid on your Loans in the current tax or calendar year. Our responsibility for managing your account and your Auto Invest Portfolio will then cease entirely.

11.7. Termination will not affect accrued rights, or any contractual provision intended to survive termination.


  1. Complaints and Compensation

12.1. We endeavour to deliver a first-class service to our clients, but we recognise that there may be occasions when we fail to meet your expectations. If you have a complaint, then you can contact us through your account or by phone on 0333 900 9999 or by email at

12.2. If we are not able to resolve the complaint to your satisfaction, you may have rights to refer the complaint to the Financial Ombudsman Service. Further details are available from the Financial Ombudsman Service, at You may request a copy of our complaints handling procedure at any time.


  1. Fees and Charges

Our fees are paid by Borrowers and we do not currently charge you for your use of the Auto-Invest Service. However, we may introduce charges for exceptional transactions, provided that no such charges will be introduced retrospectively in relation to Auto-Invest Portfolios that were created before such charges were notified to you.


  1. Delegation

14.1. Any of our functions under these terms and conditions may be delegated to an associate or

competent (and if relevant, appropriately regulated) third party of our choosing to perform such functions. We will use reasonable skill and care in our selection, monitoring and use of agents.

14.2. Collections may be outsourced by us or the Security Trustee to any third party.


  1. Conflicts of interest

15.1. If any conflicts arise which we could not effectively manage, we may not be able to provide our services to you.

15.2. It is possible that the Borrowers or other counterparties in a transaction or Loan will be entities in which we, our associates or their clients have financial interests, or to which we or our associates provide services. Accordingly, we or any member of our group (including any associate) may be entitled to gains, profits or fees from or in relation to such companies and entities.

15.3. Subject to the terms of this section 15 (Conflicts of interest) neither we nor any of our associates shall be required to account to you for any profit, commission or remuneration made or received from or by reason of such transactions.


  1. Variation and transfer

16.1. We may, at any time, change these terms and conditions by giving you not less than the

Minimum Written Notice Period, and such changes will take effect on the date specified in the written notice. For the avoidance of doubt, these changes may impact our fees and charges, or the level of service provided.

16.2. We may amend these terms if we believe it necessary in order to respond proportionally to changes in law and regulations.

16.3. We may also amend these terms and conditions to reflect changes to our systems, administrative processes and procedures, market practice or client requirements and to reflect other legitimate cost increases (or reductions) associated with providing the Auto-Invest Service.

16.4. A variation to the Target Rate shall not constitute an amendment to these terms. Changes to the Target Rate will be published on the Site. A change in the Target Rate will not affect the rate applicable to your existing Loans but is likely to affect the rate you receive on re-allocation or re-investment.


  1. Liability

17.1 You agree and acknowledge that we shall take on no liabilities, obligations or rights under any  Loan as a result of our authority to act on your behalf and you agree that you will continue to be solely liable for and responsible for the rights and obligations under any Loan agreement and any Contract of Transfer.

17.2 We shall not be obliged to pay on to your Loan repayments, interest or other sums due to you from Borrowers or other third parties unless we have received them.

17.3 We do not provide tax or investment advice. If you are unsure about the tax or investment implications of the Auto-Invest Service, you should seek advice from an appropriately qualified adviser.

17.4 We shall not be responsible for any losses to the extent arising from any information provided by you being untrue, inaccurate or incomplete.

17.5 We shall not be liable for any consequential, indirect, special, incidental, punitive or exemplary loss, liability or cost which you may suffer or incur arising out of our acts or omissions regardless of how that loss, liability or cost is caused and regardless of whether it was foreseeable or not.

17.6 We will act in good faith and with due diligence in managing your Loans in accordance with these terms and conditions.  We accept responsibility for loss to you only to the extent that such loss is due to our negligence or wilful default.

17.7 Nothing in these terms and conditions shall exclude or restrict any liability we have to you

under any applicable law or regulation.


  1. Interpretation

18.1. These terms and conditions shall be governed by, and construed in accordance with, the

laws of England, Scotland and Wales, and the appropriate Court of Law in England is to have

non-exclusive jurisdiction in relation to all matters, claims and disputes arising out of or in connection with these terms and conditions. No other documentation or literature can be

used as part of the terms and conditions.

18.2. It is not intended that any term contained in these terms and conditions shall be enforceable, whether by virtue of Contracts (Rights of Third Parties) Act 1999, common law or otherwise, by any person who is not a party to these terms and conditions save that third parties referred to in it, including the Security Trustee and Intermediaries, may rely on any authority granted to them under these terms and conditions, including the ability to accept our instructions to carry out functions on your behalf in accordance with these terms and conditions. Any group company of ours shall be entitled to enforce these terms and conditions on our behalf.

18.3. If any part of the wording of these terms and conditions shall become or is declared to be illegal, invalid or unenforceable for any reason, such part or wording will be deleted and shall be divisible from the rest of these terms and conditions, which will continue in force.

18.4. Our failure to exercise or delay in exercising a right or remedy provided by these terms and conditions or by law does not constitute a waiver of other rights or remedies.

18.5. The terms and conditions are supplied in English, and we will only be required to

communicate in English during our relationship with you.


  1. Notices

19.1. We may send any communications to you through the account and/or at the email address which you provide to us in when opening your account (or to any updated email address that you may notify to us in writing from time to time). Any original documents will be sent to the last postal address you have notified to us. It is your responsibility to ensure that the contact details we hold for you are accurate and up-to-date contact. You must notify us of any changes to your email or postal


19.2. You may communicate with us by email at member

If we require information to be sent to us by post, this should be sent to:

Sourced Capital, Capital House, 6 Webster Court, Warrington, WA5 8WD.

19.3. Notice sent by first class post to such address is deemed to have arrived on the second business day after posting. Notice sent by email or hand delivered is deemed to be delivered immediately (or on the next business day if sent after 5pm on a business day or on a non-business day). Telephone calls are recorded and monitored for security, training and monitoring purposes as set out in our privacy policy.