Blog
14th November 2014

Asset-Backed Lending

 

Asset-backed lending is a straightforward route to secure a loan. This type of lending ensures that when a borrower takes out a loan, the loan is secured on an asset. Therefore, if the loan goes into default and repayments are not met, the asset that the loan is secured against can be sold to cover any losses incurred.

Assets that can be used as security tend to be inventory, accounts receivable, machinery and equipment, the assets are used to secure a line of credit. To ensure that the asset that is securing the loan is a useful tool, liquidity tests have to be carried out to guarantee that the asset can be sold in a suitable time frame to recover any lender’s lost capital.

Wellesley & Co. are asset-backed lenders and currently secure loans on property at an average loan to value rate of 65%.  For further information on Wellesley’s loan criteria please view the case studies here. Alternately, please telephone the office to speak to a Loan Officer for information on financing for development 0800 888 6001

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

Require further information?
Call our customer service team on 0800 888 6001 or e-mail us on [email protected]