Our

Lending Process

Sourced Capital have built a robust recoveries process to maximise returns in the event of a default

Our Lending Criteria

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Every loan application that is received by Sourced Capital is required to meet some strict key criteria prior to being processed through our application process. This criteria includes:

• Property must be in the UK
• Minimum loan amount is £50,000
• Loan term must be between 6-24 months
• Borrower must be an incorporated UK company
• Borrower must be an approved and experienced Sourced franchisee

You can find out more about our franchise by clicking here

Download our Lenders Guide

Capital at risk.

Our Application Process

Sourced Capital have built a rigorous 8 stage application process which all potential projects must follow in order to be listed on our platform.

Application

A borrower will complete an application process detailing the requirements of the loan and the plans for the property they plan to develop

Initial Meeting

We will meet with the borrower to discuss the project face to face and complete initial due diligence

Offer In Principle

We will provide an Offer in Principle if the initial due diligence and face to face meeting were approved by our credit committee

Due Diligence

We will complete a rigorous due diligence process over the period of 4-8 weeks before submitting all documentation to the credit committee

Valuation

An independent RICS valuation will be carried out on behalf of Sourced Capital to provide proof the security valuation before pre and post development

Loan Offer

Our credit committee will review all the documentation provided and if successful we will provide a formal loan offer to the borrower

Legals Signed

Upon the borrower reviewing and accepting the loan offer documentation all loan and security legals are signed by Sourced Capital and the borrower

Principal Sign Off

Once all legals have been signed our FCA principal will have a final review on the deal prior to the project launching on our platform

Earn up to 12% per annum

Capital at risk.

Our Recovery Process

In the event of a borrower defaulting on a loan, Sourced Capital have a structured recoveries process in place for our security trustee to take control and recover lender funds.

Action Letter

JARK Security Trustee Limited will write to the borrower three days after a payment is missed outlining the recoveries process and desire to settle the loan prior to recovering the security

Borrower Response

The borrower will be given the opportunity to put forward a solution to repaying the outstanding loan. Failure to meet a suitable resolution Jark Security Trustee will Appoint a Receiver

Appointment of Receiver

Jark Security Trustee Limited will appoint a receiver on behalf of the lenders to begin the process of recovering funds

Investigations by Receiver

The receiver will investigate the current situation and calculate the best structure to recover funds for lenders

Property Marketed and Sold

The receiver will utilise the first legal charge against the property to recover borrower capital. The property will be marketed on the open market

Sales Proceeds

Upon receiving the the sales proceeds, Jark Security Trustee Limited will distribute this the participating lenders of the loan

Sourced Capital will declare a loan as in default 180 days after a payment is missed. This does not determine if any capital will be lost. Should after all legal options being exhausted, there remain an amount of unrecoverable capital the loan will be considered as bad debt.