The Business Loan Network (BLN) links borrowers and Lenders, by bypassing the banks and sharing the benefit of avoiding their charges, so both get a better deal.
BNL holds an on-line auction at www.thincats.com where Lenders bid to join syndicates making loans to a series of pre-vetted and secured lending opportunities. Lenders bid a minimum of £1,000 to join syndicates making loans from £50,000 to £3m over periods ranging from a few months to 5 years or more. Loans are always secured and researched in detail by former bank managers before being featured in an auction.
Lenders always make their own lending decisions and can make multiple bids in the same auction at different interest rates. At the end of an auction the lowest bids are selected to make up the total needed with each successful bidder getting the interest rate they bid. The Borrower is often offered the weighted average rate plus the BLN fee of 1% and 0.5% for the “Sponsor” who will be monitoring the loan.
Lending membership is open to serious investors who understand the risks involved and who demonstrate their commitment by keeping at least £1,000 of cleared funds in their Client Account.
Loans Without Banks is an ever growing sector of the commercial finance market and one Sterling Capital Reserve have fully utilised for clients.