Any interest earned but not paid up to 13 October 2020. Accrued interest has been included within your offer. For example, if you had originally invested £100 and it had accrued £12 worth of interest, your repayment has been calculated against the total of £112.

The Available Balance shows the cash value in your holding account. There are two important things to remember here:

• Cash transactions will not show on here until funds have been cleared in the bank. Withdrawals will be deducted at 3.30pm Monday to Friday and funds added could take up to four working days to appear in your holding account for bank transfers and up to seven working days for cheques.
• Subscriptions to bonds will only be deducted from this total when a bond is closed. Please click here for further information on this process.

You can view your available balance under the Holdings page of your account.

The cash repayment option is only available on Wellesley Mini-Bonds and Wellesley Property Mini-Bonds if the CVA passes. (Peer-to-peer and listed bond investments are not eligible). If an investor selects the cash option, they are expected to receive payments throughout 2021.

Similar to your Available Balance, Cleared Balance reflects your cash holding account. It may, for a short period, reflect a different figure to your Available Balance. This is because as it's calculated at different stages of transactions (such as withdrawal, adding funds or subscriptions) than the Available Balance.

If you are looking to understand what available funds you have in your account free to withdraw or invest, please refer to your Available Balance.

A CVA  is a process that allows a company to come to an arrangement with its creditors over the repayment of its debts. A CVA allows a company to create a new arrangement that offers a better solution for its creditors by obtaining an increased value of what can be returned to them.

A CVA Proposal is presented to creditors and details the particulars of the suggested resolution. As per the Insolvency Act 1986, creditors then vote on the CVA and a majority of 75% or more by unsecured debt value, must vote in favour of the proposal to enact the CVA.

In this instance, Wellesley Finance Plc has undertaken the CVA alongside independent and licensed insolvency practitioners, Duff & Phelps, to bring a better outcome for all Wellesley Finance Plc unsecured investors. On 14 October 2020 it was announced that Wellesley Finance Plc’s creditors voted in favour of the CVA.

The preferred equity option is only available on Wellesley Mini-Bonds and Wellesley Property Mini-Bonds if the CVA passes. (Peer-to-peer and listed bond investments are not eligible). If an investor selects the preferred equity option, they are expected to receive payments in three to four years.

The amount Wellesley anticipates returning to investors based on the corresponding outcome.

An account where funds are held. It’s the middle ground between a customer’s personal bank account and an investment product. When a customer adds funds to their account, it will show in their holding account, until it is moved into an investment product. All interest and full capital on maturity will be paid into this account, at which point it can be reinvested or withdrawn back to a customer’s bank account. Funds do not earn interest while in a holding account.
There are three types of holding accounts that a Wellesley customer could have access to:

• Holding account – Every Wellesley customer will have access to a holding account linked to their general investment account which is held under the Wellesley New account.
• Wellesley Classic holding account – This holding account only applies to customers with legacy peer-to-peer or mini-bond holdings. Customers cannot transfer funds in or out of this account. It is used to pull information from Wellesley Classic. Funds will only every pass by this account before automatically being transferred into the above holding account. For example, interest from an existing peer-to-peer product will appear in this account for a short period of time before it will be moved into the above holding account where clients can reinvest or withdraw as they wish.
• Wellesley ISA holding account – Customers who have opened an ISA account will have access to this account which work in the same way as the holding account. If customers are wishing to take advantage of investing via an ISA, they must transfer funds into this account. There is a different reference number for this account versus the non-ISA holding account. This must be included as instructed when adding cash to your account so that we know which account to credit.

The loan book was bought by Cloverleaf 376 Limited which is a subsidiary of Wellesley Finance plc a company within the Wellesley Group. Duff & Phelps’ Real Estate Advisory Group supported Wellesley in undertaking a loan sale process whereby prospective bidders were approached and invited to make offers. It received a number of bids all of which were subject to the bidders conducting further due diligence into the loan book and Wellesley Finance Plc. Wellesley submitted its own bid for the loan book based upon an intra-group transfer to Cloverleaf 376 Limited, which was offered at a higher price to the other external bids received. Wellesley Finance Plc’s bid was made in order to preserve the underlying value of the loan book for investors.

ISIN (or International Securities Identification Number) is a code that uniquely identifies a specific securities issue such as bonds or stocks. Each issue of a Wellesley listed bond will have a unique ISIN.

The loan book refers to the entire portfolio of live loans between any Group entity as lender(s) and the investors. All of Wellesley’s loans are back by property under development.

A Nominee is the licensed insolvency practitioner named in a Company Voluntary Arrangement (CVA) proposal who is intended to ultimately supervise the implementation of the proposal when the proposal has been agreed by the creditors of the company.

This document documents the details regarding a creditor’s claim against Wellesley Finance. It is auto-populated based on the information held on your account and your investments. Once complete, we will send you a copy of this form via email. You can also download it from your account once your vote is cast.

The below defines the content of the Notice of Claim form:

• Account by which creditor identified debtor(s)
  This is your full name, your Wellesley account reference and the references for your investments.
• Nature of debt
  What your claim against Wellesley Finance Plc is regarding.
• Part jointly liable for the debt
  If two or more partners are responsible for the debt. As this debt is in relation to Wellesley Finance Plc only, this should be left blank.
• Claim against documents
  This section details where the evidence of your claim is held. In the case of Wellesley’s investors, this is the online account transaction as evidenced on your account on Wellesley’s secure platform.
• Total claim
  This is the amount of capital impacted by the debt and is taken directly from your investment.
• Total interest
  This is the amount of accrued interest impacted by the debt and is taken directly from your investment.
• VAT
  The claim is not subject to VAT.

If the CVA passes, some Wellesley investors (Wellesley Mini-Bonds and Wellesley Property Mini-Bonds investors) will be given the choice of a cash or equity offer on each of their investments depending on their investment product. They will have six weeks to make their decision and can pick and choose their preferred payment method for each of their investments. This means investors with multiple investments can choose to have some paid sooner as cash and others as equity at a later date.

A portfolio refers to the type of account you hold with Wellesley. Every client will have a ‘Wellesley Customer Portfolio’ which is the name of the general investment account. Anyone who has opened as ISA account will also have a ‘Wellesley Customer ISA Portfolio’

Similar to your Available Balance, Posted Balance reflects your cash holding account. It may, for a short period, reflect a different figure to your Available Balance. This is because as it's calculated at different stages of transactions (such as withdrawal, adding funds or subscriptions) than the Available Balance.

If you are looking to understand what available funds you have in your account free to withdraw or invest, please refer to your Available Balance.

The term 'security' refers to an investment product. Therefore, each issue of a Wellesley listed bond will have a unique security name and corresponding ISIN.

This is the total of all transactions that have not yet cleared in the bank and are therefore in transit. The funds that are displayed here haven't yet been updated in the other balances on your account. Some important things to bear in mind about this figure:

• It will reflect pending withdrawal requests but only after 3.30pm Monday to Friday. This will appear as a negative balance
• It will not reflect funds that are subscribed to a bond until the closing date of the bond. For further information on this process, please click here.

You can view your available balance under the Holdings page of your account.

Please note that this is not the same as a ‘suspended balance' on Wellesley Classic.

You will see this under the Pending Orders tab on the Recent Activity page of the online investment platform. This is where any pending bond subscriptions will appear appear. Trade Type will display as ‘Buy’ while the order is pending (before the bond closes). Once a bond closes an additional entry will appear here with a trade type of  ‘Purchase'. This will display here until the bond is listed on the stock exchange which typically takes a few days.

Wellesley Classic is the name of Wellesley's original online investment platform that is only available to customers who have legacy peer-to-peer or mini-bond products. In July 2019, Wellesley launched a second investment platform designed to allow customer to invest into listed bonds.