Secured Peer-to-Peer Lending with Unbolted
Unbolted has an entirely unique and uniform approach to peer-to-peer lending.We lend against assets. These are items that either individuals or small businesses hold that have a resale value. Everyone is familiar with a mortgage against their property and today, more and more people are realizing that other items in their possession also have a value that they can borrow against.
- As long as the potential borrower is a UK resident and has an asset that has a resale value, the Unbolted platform is open for them. Their credit rating is irrelevant as we are lending against the asset. The advantage for the borrower is that if they fail to pay back the loan, the most that they can lose is the asset that they have provided to Unbolted.
- The advantage for the lender is that every loan is backed by actual collateral. That means the lender does not have to assess or depend on Unbolted to assess the credit worthiness of the individual. If you are a potential lender, the only requirement you need to comply with is again to be a UK resident.
- Therefore, determining the value of the asset lent against is of primary importance. Unbolted uses a robust and principled approach to determine secondary market values.
- The best place to determine the secondary value of an item is through an auction process. As a result, we partner with selected firms who are internationally recognized for creating or managing auctions for a particular category of assets. We use their mid-range estimate to determine the value of the asset in question.
- Unbolted normally lends between 40% to 70% of the low auction estimate with the exception of gold, silver and watches where we lend up to 80% of their liquid market value. We think this is attractive for the borrower and prudent for the lender.
- Unbolted does not accept any fees until the loan principal has been repaid.
If the Borrower Defaults
The asset, which is under the control of Unbolted for the duration of the loan, is put up for auction.
- After the item is sold at an auction, the funds received - less the charges for selling it through the third party - are used to pay off the outstanding principal and interest.
- Unbolted only receive their full fees if the lender receives their full interest and until then, Unbolted shares in the losses.