1 minute read
How it works
Prospect Capital will originate, underwrite, and manage all loans thereby providing you with a secure income without any of the work involved.
Any loan we are considering will be subjected to an initial screening process. If it passes this initial screening, we will issue the borrower with an agreement in principle. It is important to note that this is subject to underwriting and approval by our credit committee.
At this stage we will also send all our co-funders an overview of the loan in the form of a co-funding proposal (CFP). This provides details of the loan together with a clear statement of the interest rate payable and the co-funders' combined maximum LTV, which is usually 55% or less. Any co-funder who wishes to participate in the loan simply informs us of the amount they wish to provide, the minimum amount is usually £100,000.
Once a loan has been through our underwriting process and, subject to it being approved by the Prospect Capital credit committee, a lawyer from our panel will be instructed to commence with the loan and security legal documentation.
Once the legal work has been completed, the lawyers will report back to both Prospect Capital and each co-funder individually. Both Prospect Capital and the co-funder send their portion of the loan directly to the lawyers shortly before completion is due.
In certain circumstances we may fully fund a loan ourselves initially then offer it to our co-funders post completion.