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Yes.

If you need to access your money, you can sell your microloan/s to other lenders in the Secondary Marketplace. After a microloan is sold, the proceeds are returned to your balance. If you want to access this cash, you need to submit a withdraw request from the Dashboard.

If you choose to sell microloans individually, you can select and sell micro loans at a premium or discount of up to 5%. If you sell at a premium, you can earn a profit, but if you sell at a discount, it is likely that you will be able to access your money sooner.

The ability to sell your micro loans is driven by supply and demand and we cannot guarantee a timeframe in which you will be able to divest. You cannot sell micro loans that are in default.

It is only possible to cancel bids when there is a material change to the auction. For example, the loan amount requested is amended, or the security offered or auction deadline is changed.

In these situations, an update will be posted in the relevant Loan Updates tab informing lenders of their right to cancel prior bids with the instructions for requesting a bid cancellation and the deadline for requests.

If the loan request is 100% fully funded before the auction deadline, we use the ‘Dutch Auction' system.

When a loan is 100% offered, the borrower has the option of either closing the auction early (we give lenders at least 24 hours notice), or of letting the rest of the auction period run. Lenders who want to get involved when the loan is 100% offered will only be able to bid at 1% below the max starting rate, and their bid will knock off the most recent lender at the higher rate, bringing down the overall interest rate.

If a loan request is not 100% fully funded, we do not release the funds raised to the borrower.

Towards the end of the auction, we contact the borrower or their broker to discuss their options depending on how the loan request has funded.

Once the auction ends, if the loan request is not 100% filled we can, at our discretion, offer the borrower the option to extend the auction at the current loan request, or alternatively lower the loan request and extend the auction.

If the applicant wishes to withdraw their request completely, the auction will be cancelled and lender funds will be immediately returned. No interest will be earned on bids made where an auction is cancelled or withdrawn.

If the applicant communicates their desire to extend the auction to try and reach 100% of their funding target, we can offer a one- or two-week extension to the auction. We can also, on occasion, reduce the amount requested if the applicant wishes to lower their target to a more achievable amount.

Whenever an auction is extended or the amount requested is changed, lenders will have the right to cancel any bids made before the change occurred. Notice of the change will always be posted on the ‘Loan Updates’ tab of the application page and is also visible via your lender dashboard.

The update notification post will contain details of how to request a bid cancellation and the deadline for any requests.

Bids are binding until the funds are either accepted by the Borrower or outbid by another lender. If the loan has been fully funded, and a lender bids at a lower interest rate, the highest bid is automatically rejected. If you have been outbid and still wish to lend to a particular business, you will need to place a new bid at an interest rate that is lower than the highest bid.

The Primary Marketplace is where new lending opportunities are listed. These are new loans to the platform that have been approved for listing following our credit risk assessment.

The Secondary Marketplace features loans that have already been funded by rebuildingsociety.com lenders and will be at varying stages of maturity. It's here that lenders can sell microloans to other lenders. This offers lenders the chance to gain quick access to their cash.

When we refer to 'loans', we are talking about the loan to a business. A 'microloan' is simply a loan part. The 'loan' is in fact made up of many 'microloans' which have been loaned by individual rebuildingsociety.com lenders to the borrower. Microloans can be traded on the Secondary Marketplace.

Selling your microloans is easy and a great way for you to be able to realise a quick profit and gain access to your cash.

You can sell your micro loans by visiting your Dashboard, and selecting Action. You will then be able to select the rate at which you want to sell your micro loan at. You can choose to sell your micro loans at up to 5% mark-up or mark-down.

Once you have selected your sale preferences, your micro loans will be listed in the Secondary Marketplace.

Interest on microloans is accrued on an incumbency basis, meaning that should you sell a microloan, you will waive the right to the interest due on the next repayment date.

The outstanding principal amount lent, plus or minus the chosen rate of premium or discount selected.

Interest on microloans is paid to the micro loan holder, so the best time to buy a microloan is just before a repayment is due (check the repayment history to see if this has been made) and the best time to sell is just after a repayment has come in.

Imagine a loan of £100 at 13% won in an auction. When some months later the lender sells this loan, they sell the loan of the outstanding capital (e.g. £93.27), which continues to earn the new owner, the buyer, the same rate of interest (i.e. 13%). The buyer pays more or less than £93.27, depending upon whether the original lender, the seller, applies a premium or a discount.

If the seller applies a premium of say 3%, then the buyer will pay £96.07 for this loan of £93.27. The new owner, the buyer, will continue to receive monthly interest payments equivalent to an annual rate of 13% of the outstanding capital each month (i.e. £93.27 at outset). Although the interest will equate to 13% of £93.27, it will equate to a lower % of the amount paid (£96.07) for the outstanding capital (93.27). This lower % is listed as the “Buyer’s Rate” and gives a more realistic indication of the interest which will be earned after the seller’s premium has been taken into account.

If the seller had offered this loan for sale at a discount, then the Buyer’s Rate would have been higher than 13%.

The value of the Buyer’s Rate depends upon the value of the premium or discount, and also the remaining term of the loan.

Sometimes a loan will complete, but there will be exceptional circumstances that mean we temporarily prevent microloan sales. For example, we could require a charge over a property to be registered with the relevant authorities. Should anything happen that means the loan has to be cancelled, there will not be a complicated trail of redress.

Also, if a business is in default, we prevent the sale and purchase of its microloans.

In the event that a business is late in a repaying an instalment, we’ll be the first to know. As soon as we become aware that a borrower has fallen behind on their payments, we will contact them on your behalf to find out the reasons for missing a repayment and when we can expect it to come in. If the business has run into financial difficulty, we will negotiate with them to find a way by which the balance can be repaid on different terms. In the event that the borrower is not able to repay the loan, you will be given the option to take a repayment holiday which allows the business to pay the interest and not the capital. Should the borrower continue to under-perform, we will get a debt recovery company involved in order to recover the debt.

For more information on our debt collection policy and process please see our Terms and Conditions.

As of the 1 Dec 2022, P2P platforms are restricted from offering refer a friend bonuses and lending incentive cashback. However, we can still offer commission to individuals that refer successfully funded business loans.

- 1% commission for referrals of successful loan applications

More information can be found on our Introducer page.

Rebuildingsociety.com recognises the need to balance its recovery processes with taking a proactive approach to recover lender debts and working with a borrower to ensure that a mutually beneficial arrangement is reached for the full repayment of the debt.

Our process for following up on late repayments is as follows:

1. Where a repayment is not received on the day it is due, we will attempt to make contact with the borrower via email and phone, to make them aware that the repayment is late and ask that they see that the repayment is made immediately. Most late repayments are resolved this way.

2. When a repayment falls 3 days behind, it will then show as overdue on the repayment schedule that is visible to lenders. At this stage we will ordinarily post a note on the relevant discussion forum informing lenders that we are aware of the overdue repayment and report any communication we may have had with the borrower.

3. Each day that a repayment is not received, and we have not heard from the borrower as to why it is late and when we can expect payment, we will continue to email, call and text the Company / Director.

4. If a loan falls 14 days behind we will write formally to the Director/s at the company address to request repayment.

5. When a loan falls 30 days behind on a repayment we will write a formal warning letter to the Director/s of the company as well as relevant guarantors, informing them of the missed repayment and request that the overdue repayment and the next repayment be made. We will also make them aware of the consequences of default.

6. At 30 days overdue we will also suspend microloan trading.

7. If at this stage, we have still had no repayment or communication with the borrower, we will continue to try to make regular contact. If contact is made we will attempt to arrange repayment a debt restructuring plan or where necessary take relevant collections steps.

Where a repayment is more than 7 days overdue, this will show up permanently on the borrowers’ repayment record, which is visible to lenders throughout the term of the loan.

When a loan defaults, we will attempt to recover it on your behalf. Whilst we attempt to recover the full accrued unpaid interest as well as capital, a recovery is not guaranteed. The legal recovery process can, depending on the circumstances, be long and uncertain. To provide you with more clarity on the progress of the recovery action, we provide you with an ‘estimate probable recovery’ figure that will give you our best estimate on the percentage of your capital debt that we believe can be realistically recovered.

With new defaults, we will normally set the probability to our average success rate, and then adjust it as we learn more from the solicitors enforcing the security on the debt.

This estimated amount is then displayed on the lender’s dashboard in pound sterling, to give the lender an approximation of the estimated value of their currently defaulting loans.

All borrowers are required to offer security on our loans.

For loans up to £50,000 this can be a personal guarantee. For loans above £50,000, an asset must be offered by the borrower. When borrowers offer a personal guarantee, we ask them to fill out a Statement of Assets, Liabilities, Income and Expenditure (SALIE). This is signed as true by the borrower who receives independent legal advice.

When borrowers offer a charge on a residential or commercial property, we instruct solicitors to carry out checks on the title register to ensure the person offering the security owns the property. We also require the most recent mortgage statement and an independent valuation to estimate the loan to value ratio of the asset. If all of this information is to our satisfaction we will register a legal charge on the property on completion of the loan.

When borrowers offer a charge on a named business asset, such as a piece of machinery, we require an independent valuation from the manufacturer and an estimate of the likely resale value of the asset. We also need the asset to be removed from any existing asset debenture that may be in place.

When borrowers offer an all-asset debenture as security, we check that there are no other debentures in place, which are registered at Companies House. This entitles rebuildingsociety.com to become the primary creditor, should the business default on its loan and liquidators appointed to repay creditors through a sale of the business assets.

All loans are made in GBP, however you can credit our UK bank account using Transferwise. There is a small fee, but you are given a better exchange rate than you would get with most banks, because this is a peer-to-peer currency exchange platform. When you withdraw your funds you will need to provide your IBAN (International Bank Account Number) and SWIFT code.

We also use Transferwise to return your funds as Euros into your bank account. Most credits and withdrawals happen the same day, so there is not much of a delay for the currency conversion.

Please note that you…

- may suffer from exchange rate fluctuations, which may affect your returns
- are responsible for declaring your interest earnings to your local tax authorities

BidPal is a feature that enables you to make the most of new opportunities as soon as they become available. It is the best way of using your capital so it is always working for you.

If you use BidPal, you will be able to choose the risk band, the rate that you will bid at and the denomination you would like to lend to each business.

So if you have £1,000 to lend, would like to lend to businesses that have been classified as being in Risk Band A+ and want to lend £100 to each business, you will essentially have placed bids to lend with 10 businesses within that particular risk band.

BidPal is principally a tool which allows you to lend to more businesses and in the process spread your risk. BidPal will bid the amount specified for each risk band but there is a restriction to lend no more than 5% of your available funds to each new lending opportunity.

BidPal works for new auctions (Primary Marketplace) only. In the Secondary Marketplace, there is a similar feature called BuyPal. BuyPal will only buy a microloan for you that is smaller than your maximum loan parts setting on the Primary Marketplace, so although the loans you hold change, the diversification of your portfolio of loans is maintained.

Each day, BidPal and BuyPal automatically check your available balance and scan the Primary Marketplace and Secondary Marketplace for lending opportunities that match your preferences and automatically bid or buy for you.

If you purchase a microloan on the Secondary Marketplace, you may have paid a premium or benefited from a discount (of up to 5%). For example a microloan with £92 capital outstanding may be sold at a 3% premium, meaning the buyer pays £94.76 to the seller (who pays a 0.5% fee). The difference between what is paid by the new lender £94.76 and the capital outstanding amount of the microloan £92 is reflected as a small capital loss in the box for Microloan Gain / Loss. The inverse is true for microloans sold at a discount.

After the first 3 months of repayments, an existing borrower may apply to re-finance. If one of your businesses reapplies, you may re-lend the capital they owe you onto the new loan auction. We call this a Transfer Bid because you are ‘transferring the capital owing from the old loan onto the new loan.’ This allows you to bid without having to add more funds to your account. Of course, you can always bid your available funds as normal to also increase your loan to the business.

If you do nothing, you will be repaid your capital and interest due as normal when the loan is refinanced, which is usually when the latest loan auction completes and is accepted.

Whenever a repayment is due the interest is calculated based on the current capital outstanding. Each repayment is made up of an interest payment and a capital repayment. So each period there is less capital owing, meaning that the subsequent period earns less in interest.

Repaid Capital will sit on your available balance, ready to re-lend or withdraw. While you have an idle balance held on the platform it is not normally earning you interest.

To keep earning interest, you need to keep lending your available balance. To make this easier for you, we created the BidPal feature.

A varying repayment amount would be inconvenient for both the lender and the borrower, as such a formula is used to calculate the total amount of interest payable over the lifetime of the loan and then this is added to the outstanding capital to get the total amount repayable.

Money is held in a segregated client account regulated by the FCA; it’s one of the fundamental differences between us and banks who lend off-balance sheet. Normally no interest is paid to lenders on idle capital, until the loan completion when the borrower starts paying interest.

Therefore it’s in everyone’s interest to get the auctions funded quickly.

Lenders start earning interest from the time the loan has completed and draw-down been made.

We sometimes refer to 'refactoring' a loan when talking about the process where we take an existing loan with the original loan agreement and structure and create a ‘new loan’ with the same borrower but with new requirements.

We work hard to ensure that there is no change to the security in place as well as no extra barriers to enforcement should the borrower default on the new loan.

Legally speaking, the refactoring takes place through the signing and execution of an amended loan agreement which sits alongside the original loan agreement and works to amend the terms of the original loan agreement. The penalties for non-compliance and our enforcement powers remain unchanged, and our legal security documentation contains the requisite clauses to enable them to remain in effect for any loan amendment until the total arrears are repaid.

In most scenarios, the only thing that changes when a loan is refactored will be the repayment amounts, loan term and in some occasions, the repayment dates.

When a loan is refactored, a new listing page for the ‘new loan’ is created which will display the new repayment timetable, new term and any other changed features of the loan. There will always be a link to the ‘old listing’ so that lenders can see the borrower’s previous repayment history and the previous details of the loan. Usually, the reason for the refactoring will be made clear on the ‘Loan Updates’ tab.

In most cases, loan refactoring takes place because of repayment difficulties which have led to a borrower being unable to maintain regular repayment. Some borrowers may propose an alternate repayment plan to either request a repayment holiday or to extend the loan term.

We seek on all occasions to put the decision of whether to accept the new repayment proposal or continue with our legal enforcement action to the lenders who have capital in the loan. We do this through lender polls, which you should be notified of by email should you hold capital in a distressed loan which will be refactored. Should the majority of lenders vote to accept the new repayment proposal, the amended loan agreement is drafted and sent to the borrower, and once signed and returned, the new refactored loan page is created.

An Innovative Finance ISA is a type of account which allows tax-free interest on peer-to-peer loans. It’s subject to the same rules on eligibility and limits as other types of ISA. We have added IFISA-specific provisions to our Terms and Conditions (Sections 40 through to 48); please read these here.

Please be aware that tax treatment depends on the individual circumstances of each client and may be subject to change in future. Please seek professional advice if necessary.

Any lender who is a UK resident for tax purposes can apply for a standard lender IFISA.

A Director's Loan IFISA is a legacy product which was only available to company directors who provided a Director's Loan to their company through an ISA wrapper, or to those people the director selected to be part of a syndicate.

Your IFISA works very much like a normal rebuildingsociety lending account.

Once you have added funds to your rebuildingsociety IFISA account, you will be able to individually select the microloans you want in your portfolio or choose to use the Portfolio Builder to deploy your funds more quickly. Both these options make use of microloans available for purchase on the secondary market. You can start lending with your IFISA account with as little as £10. You will have a normal account alongside your IFISA account; this will collect any surplus balance should you credit an amount exceeding the maximum annual subscription.

Yes. Just use the Transfer In widget as part of the account opening process. See Section 45 of the Terms and Conditions for further information regarding the transfer in of your IFISA.

Yes, if you make a provider-to-provider transfer to ensure your ISA maintains its tax-free status.

Please ask your new IFISA provider to email the Transfer Authority Form to support@rebuildingsociety.com. See Section 47 of the Terms and Conditions for further information regarding the transfer out of your IFISA.

Before being able to transfer your rebuildingsociety.com IFISA, you must divest from any loans you currently hold on your IFISA account, via the secondary marketplace. You should be aware that the secondary market is driven by supply and demand and we cannot guarantee a time frame in which your parts will be sold or whether all of your loans will be bought. Selling at a premium or discount in the Secondary Marketplace may affect the rate at which parts are bought by other lenders.

Yes, you can lend as much as you want with rebuildingsociety, but you must adhere to the ISA allowance within the IFISA to qualify for tax-free interest.

If you have subscribed to the maximum amount in your rebuildingsociety Innovative Finance ISA (£20,000 for the 2020/21 tax year) and you want to lend more, you can do so through a normal rebuildingsociety account, which is set up automatically when your account is opened.

Once you reach your IFISA limit for the prescribed tax year, any further funds lent will automatically be assigned to a standard rebuildingsociety account.

For the 2020/21 tax year, the maximum is £20,000.

We’ll prevent you lending more than the ISA allowance for each tax year. However, if you have more than one ISA provider, it is up to you to make sure you don’t exceed the ISA allowance across all your accounts.

As an ISA Manager, we are obliged to provide regular reports to HMRC; as such, if you do exceed the total allowance, HMRC will notify you and your ISA provider of any corrective action.

Opening a rebuildingsociety Innovative Finance ISA once you are registered with us is quick and easy. Simply log into your account, click ‘Open IFISA Account’ and follow the instructions.

We’ll ask you to confirm the details we currently hold about you and enter your National Insurance Number. You’ll then just need to confirm your acceptance of the IFISA Terms and Conditions.

No, it doesn’t. If a loan defaults in one tax year but is recovered in another, it simply adds back in to your IFISA balance.

However, if you close your IFISA or transfer it to another provider. Then we’ll need to pay the money into a non-ISA account so those funds will lose their ISA status.

We can’t transfer any loans in default or arrears so they will need to stay in a your rebuildingsociety.com IFISA account.

If you send us a transfer request, we’ll sell as much as we can on the secondary marketplace and transfer those funds to your new provider. However we cannot guarantee a time period for this.

If you’re transferring an ISA you opened in the current tax year, you must transfer as much as possible. We’ll then move any loans in default or arrears into a non-ISA rebuildingsociety.com account while we work on recovery.

Average net returns on rebuildingsociety can vary. The level of interest you earn will depend on your decisions and the performance of the businesses you lend to. Please see the stats page for the latest information regarding performance.

Please be aware that as you are lending to businesses, there is a risk that the business may default on their loan and where this happens, your capital may be at risk. More details on the risks involved can be found at http://reb.so/risk.

No, there are various economic factors that may potentially affect your return. Your return is likely to vary depending on your decisions, how much your loan, and the performance of the loans in your portfolio.

By using an IFISA, you are lending to businesses. There is a risk that these businesses will default on the arrangement. If this happens, we will try and recover your funds for you; however, if we are unsuccessful, you will lose your capital. Please read about the risks involved before lending to any business. More details on the risks involved can be found at http://reb.so/risk.

Yes. Simply set up a Standing Order or Direct Debit from your bank to pay into your rebuildingsociety Innovative Finance ISA on a regular basis using your unique user reference number provided.

We do not charge any fees to open an IFISA account. However, charges do apply for the transfer in and out of your IFISA.

See our Rates and Fees page for more information about charges payable.

You may only use one Innovative Finance ISA in any single tax year. This means you could open one Innovative Finance ISA this year and in future years open additional Innovative Finance ISAs.

In a single tax year, you can open and use one Cash ISA, one Stocks & Shares ISA and one Innovative Finance ISA. The total you pay in must not exceed £20,000 for 2020/21.

Anyone who is at least 18 years old and is a resident in the UK. You can also apply if you’re a Crown employee (such as a member of the armed forces or civil servant) serving abroad, or the partner of a Crown employee. You don’t need to be a taxpayer to have an ISA but you must have a National Insurance number.

Only if you have a Lasting Power of Attorney for the person you want to open the ISA for. If that’s the case, please call us on 0113 8150 244 to discuss further.

No. Your ISA earnings are exempt from tax and there is no need to declare them provided you meet the ISA rules. Our tax statement excludes your earnings within your ISA.

Simply go to your dashboard, select ‘Withdraw’, and enter the amount you would like to withdraw. To be able to withdraw money, you will need to ensure that you have Available Funds, and as such, you may need to sell some of your loans on the secondary market.

We do run special offers from time to time, please see our offers page for more information:
https://www.rebuildingsociety.com/category/offers/

It depends upon the terms of the offer. Some offers may provide an incentive for opening the IFISA account, whereas other offers may require you to transfer in a specific amount by a certain date and delays in transfer could be a problem.

No. You can close your IFISA account, but you cannot convert it to a standard lender account. Having a standard lender account is a prerequisite of having an IFISA account, so any funds in the IFISA can be transferred to this standard account should you wish to close the IFISA.

The loans your money is invested in are a contract between you and the borrower. As part of FCA regulation we are required to have a Living will (Orderly Wind-Down Plan) with a third-party that would take over the servicing of the loans. This administrator would also be an ISA manager so your investment would still be treated as an IFISA.

You wouldn’t be able to add more funds into the Rebuildingsociety.com IFISA and your borrower’s repayments wouldn’t be reinvested in more loans. As your borrowers repay you would be able to withdraw the funds or transfer them to another ISA provider.

Please see our T&Cs for more information.

No. Businesses must have a public profile so lenders know who they are lending to.

Yes. After three months of successful repayments, you will be allowed to reapply for another loan. We require that you repay the existing loan in full, so this will need to be accounted for in your funding requirement. This means that you don’t have two separate repayments and it gives your lenders the opportunity to lend to you again, possibly at a lower rate.

We accept applications from any UK business that is registered at Companies House, including limited companies, limited liability partnerships and community interest companies. We do not lend to sole traders or unincorporated partnerships.

The interest rates will be set according to the aggregated rate of all accepted bids.

When the auction closes, the borrower has 7 days to decide whether to accept the loan, before the offer is revoked. After 48 hours, the interest rate offered begins to take effect.

To see the average rates across our different loan risk categories, please view our stats page.

The following types of loan are available:

– £25,000 to £250,000
– Terms up to 60 months
– Unsecured (loans that only require personal guarantees from directors)
– Secured (loans secured on a charge over property or other asset)

Once you have submitted your application and the information we need, it will take us up to 2 working days to carry out an initial review of your application to give you an initial decision in principle.

If your application meets our criteria we will put it live on the site for lenders to bid, otherwise we may ask for additional information. The auction process is currently estimated to take between 7-28 days, depending on the size of the loan and the appetite to lend from our lenders.

Yes. There are no fees for this, other than the interest accrued in the month of early repayment.

Our arrangement fees are competitive and vary from 4%-6% depending on the loan type and whether it is submitted direct or through a commercial finance broker. Additional charges may apply to cover administration costs and for certain types of security offered.

At our discretion, we may allow businesses to increase or decrease their funding requests during the application process.

rebuildingsociety.com can facilitate private or public loans. With a private loan, you can create a syndicate where you select who invests in your company.

With public loans which are listed on the platform, Borrowers cannot choose who lends to them, in so far as they can’t specify the individual microloans that form the loan total, but should the loan be fully funded before the auction closes, the Borrower can choose to either close the auction early, let it run to get a better rate, or turn down the loan offer when the auction is over and they know the final rate and monthly repayments.

If at any time you become unsure as to whether you will be able to make a repayment on time to your lenders, you must contact us so that we can work with you, and help you meet your repayment obligations.

Failure to make a repayment on time may result in penalty charges. Please see our Business Loan Terms or User Terms for more information. If you fail to inform us of the fact that you are likely to miss a payment to any lender, we will contact you after this repayment has been missed to discuss why it has been missed. We will then discuss setting new terms which you may be better able to meet and which the lender agrees to.

In an event of default, our last option of payment is not possible will be to involve a debt collections agency and legal agents to enforce any security and recover the debt from you.

For more information on your obligations and our debt collection and repayment policy please refer to the Terms and Conditions.

Whilst it is not necessary for your business to own assets in order to qualify for a loan, all loans require a personal guarantee backed by property, so you will either need to be a property owner or have a third party guarantor from a homeowner.

For loans above a certain size, we may also require a charge over property or over specific fixed assets.

No. This is a legacy product which some platform users may still use.

We are currently reviewing the product and may be able to offer a revised version in future.

Business owners make a Director’s Loan to their business using the Innovative Finance ISA wrapper. This personal IFISA in the owner’s name has the same benefits as any other ISA, and the business has access to the funds at the same time.

The loan agreement (monthly repayments, interest, etc) is flexible to suit the business, and can be either an interest-only agreement or an amortising agreement.

The business must have a genuine need for the loan, and may be required to demonstrate this for audit purposes. Unrepaid capital and interest are at risk, as the business may not be able to repay the loan.

There are two types of loan agreements, each with different associated fees:

Interest-only
• interest-only repayments
• no arrangement fee unless a debenture is required, in which case we charge 2.5% of the loan amount for admin and legal fees
• monthly account management fee: 13.33% of the interest plus 0.1% of the assets

Amortising
• capital and interest repayments
• arrangement fee of 3.25% of the loan amount
• monthly account management fee: 0.1% of the assets

Transfer fee: £40

The arrangement fee for amortising loans is charged every time the loan amount is changed. If a loan is topped up with earned interest at the same time as the new tax year allowance is added, the fee is 3.25% of the loan amount including the previously invested funds.

The 0.1% monthly account management fee is discounted to 0.05% for accounts with assets of £150,000 or more.

Fees are not negotiable.

Unlike banks we don't make money from using your money. For example, a £20,000 deposit to a cash ISA means a bank can lend £400k on a mortgage to a customer. With the Innovative Finance ISA, your business receives the money, and you receive the interest. Our fees are more transparent and so they may feel more expensive, but they are designed to be commensurate with the tax savings generated. For higher rate taxpayers, the fees are always less than 50% of the tax. Also, the 0.1% commission fee is discounted to 0.05% for accounts with assets of £150,000 or more.

Minimum of £5,000

1 year minimum

Yes

You can set any interest rate provided it is commercially sensible and you can justify the rate to HMRC.

Yes, this is a flexible ISA. You can withdraw funds provided you return the funds in the same tax year.

Yes, you can add your future ISA allowances. We will create a new loan agreement for the increased loan amount.

There is no maximum lifetime limit on your ISA investment. You can add your £20k ISA allowance each year and build your ISA to whatever size you want it to be.

We use the Nivo app for secure communications. You can sign agreements electronically, select repayment dates, and communicate with our team. When you enter your mobile number on our website, we’ll send you the link to download Nivo. You can read more about Nivo on their website: https://www.nivohub.com/

After you sign the loan agreement electronically with the Nivo app and we receive your funds, we will transfer the funds to your company within 1-2 business days.

The first repayment is usually a month after the loan drawdown. On the Nivo app, you will be asked to select your first repayment date.

Please go to https://www.rebuildingsociety.com/DLA-isa/ and input your mobile number so that we can send you the link to download the Nivo app to get the process started.

The fee is based on the ISA’s total value; this is loan capital and any repayments in the ISA account.

1) You must ensure that any other company directors are on board with this arrangement, including the rate of interest and repayment terms.

2) Ensure there are sufficient funds in the business to pay off the loan.

3) There is no FSCS cover so if the business fails, the money lent may be lost.

4) Company growth may be impeded as profits are taken into the ISA and returned to the director in the form of interest.

Yes. It can take up to 4 weeks to process, although it may be quicker with a Cash ISA. An admin fee of £40 applies.

The full amount is required to fulfil the contract. If you wish to transfer funds in parts, the full amount will need to be received into your ISA before funds are transferred to your business. Alternatively, the contract can be amended to a lower amount, and you can choose to refinance to a different amount at a later date. After you transfer funds, and they are processed and are in your ISA, you have full access to the funds before they are transferred to your business and can choose to withdraw the funds at any time.

Yes. They would need to open a standard ISA account with rebuildingsociety.com to receive the interest and capital repayments. Formalising loans from friends, family and employees helps protect your investors.

A BuyBack Guarantee is a promise by one lender (a guarantor) to another (a buyer) to repurchase specific microloans in the event that the loan falls into arrears by over 60 days past due.

Only certified High Net Worth (HNW) and Sophisticated Investors may become guarantors given the additional associated risks.

These microloans fetch a higher premium because the guarantor holds the risk if the microloan defaults. The risk to the buying lender’s capital risk is greatly reduced by buying a BBG microloan, and therefore they will earn a lower rate of interest for the reduced risk.

We restrict who can offer the guarantees because restrictions apply on the guarantors’ account affecting their ability to fully divest from the platform. Only HNW and Sophisticated Investors that have been lending on the platform for over 6 months may become guarantors.

a. To become a buyback guarantor, you must meet the following requirements:
i. Be a Sophisticated or self-certified Sophisticated Investor, or
ii. Be a certified High Net Worth (HNW) Investor
And
iii. Have been an active investor on rebuildingsociety.com for more than 6 months
iv. Have experience of holding microloans in legal recovery

As a guarantor you will be restricted to offering only up to 40% of the value of your performing portfolio (Cash + Bids + Performing Assets).

As soon as a loan falls into arrears we will:
i. Send guarantors an email informing which loan has fallen into arrears and the potential liability value
ii. Display the potential liability value on the guarantors’ dashboard;
iii. Restrict your bidding, purchasing and withdrawing, until the buyback liability cover amount is available;
iv. Automatically facilitate the repurchasing of microloans from day 61 to day 90

We will do this automatically for you. We’ll let you know when a loan falls into arrears and notify you when the full liability is due.

No

For guarantors, we will restrict bidding, purchasing and withdrawing, until the buyback liability cover amount is available.

Yes, whilst you still have BBG microloan liabilities on loans that have not yet been repaid, you will be unable to fully divest from the platform because you must hold a portfolio value that means the value of your BuyBack Guarantees are always less than 40% of the value of your portfolio

You can easily spot microloans with a BuyBack Guarantee on the Secondary Marketplace by looking for the blue shield. You can then see all the microloans on offer that have a guarantee attached on the microloan tab on the loan profile.

As soon as a loan falls into arrears we will automatically start applying restrictions to the guarantor's account to ensure that they will be able to honour the guarantee. In addition to this we restrict the amount guarantors can offer as guarantees to 40% of their performing portfolio, so there should be sufficient repayments coming into their account to honour the guarantee.

No, if the BBG becomes due the guarantor is only obliged to pay you your capital outstanding at the time that the liability falls due. They will not pay you any interest overdue at the time or due in the future.

Potentially yes. When you buy a BBG microloan, you will pay a premium for the guarantor to retain the risk. Therefore, if you have yet to receive sufficient interest repayments to cover the premium at which you bought the microloan, you may lose the difference between the premium you paid and the capital outstanding when the guarantor buys back the microloan or if the borrower redeems the loan early.

The buyback process is initiated automatically by the platform and the process will begin as soon as a loan repayment is missed. This means that we’ll start applying precautionary restrictions to the guarantor's account in anticipation of the guarantee needing to be actioned, helping them to accrue the potential liability due to you and other lenders.

When a loan is 60 days overdue the guarantee will become ‘due’; if the guarantor already has the full amount on their account, we will action the guarantee and your capital outstanding on the microloan at the time will be credited to your account. If the guarantor does not have the full cover amount on their account at 60 days past due, they will have another 30 days in which to either credit their account or use expected repayments to cover the liability.

When the guarantor has sufficient balance to honour the guarantee (see above), lenders will be paid out on a first bought, first bought back basis, until the guarantor has honoured their full buyback liability on the particular loan.

Yes, you can sell BBG microloans to other lenders, however you will not become the guarantor; the liability remains with the initial guarantor who first offered the BBG on the microloan.

The BuyBack Guarantee significantly reduces, but does not mitigate all risks.

The requirement for a BBG microloan to be bought back is only triggered after 60 days of arrears, and the guarantor has a further 30 days thereafter to make good their liability.

No, you will get the interest and capital repayment made by the borrower, albeit late.

No. The borrower needs to miss the full repayment.

If your interest payments have not covered the cost of your premium, then please email us, with an explanation of the premiums paid and we will compensate you from the late repayment fee charged to the borrower.

Introducers can be lenders, borrowers, industry influencers, lawyers, financial advisors, accountants, brokers - anyone who wants to share rebuildingsociety.com with their network!

Introducers can refer:
- Business loan applicants
- Director's Loan ISA applicants

Already registered with rebuildingsociety.com?
Visit the Introducer Area and take a minute to read our Introducer Agreement.

If you will be referring business borrowers, you can complete a loan application for them.

For Director's Loan ISA applicant referrals, please contact our team directly.

Not registered with us already?
Register as an Introducer here. Then visit our Introducer Area where you can read our Introducer Agreement.

If you will be referring business borrowers, you can complete a loan application for them. For Director's Loan ISA applicant referrals, please contact our team directly.

If you are interested in acting as an Introducer in another capacity, please contact our team directly at support@rebuildingsociety.com.

Complete our quick online application https://www.rebuildingsociety.com/new-app-form/ and set your commission. Email across the client information to apps@rebuildingsociety.com.

We pay out commissions for introductions to Borrowers and Director's Loan ISA clients where the loan completes.

If you manage a Borrower through the whole loan process then you will be able to set your own commission, giving you the flexibility to structure the terms of finance to suit you and your client.

To learn more about the full range of commissions please visit our Introducer Area.

We aim to review all applications within 2 working days.

To achieve the best rate for clients we advise a full 14 day auction, however funds can be raised and drawn down within a week.

Nothing. You are not responsible for repayment performance.

We are always working to improve the user dashboard, and we plan to include functionality to display applications submitted by brokers in the near future.

No - by referring someone you are accepting our Introducer Agreement.

You’re free to use the resources available in the Introducer Area on our platform.

If you intend to mention rebuildingsociety.com in a Financial Promotion, our compliance team must approve the content prior to publication or distribution.

This is because rebuildingsociety.com is regulated by the FCA and we comply with their Financial Promotions regulations. These regulations extend to your messages and as such, your message must be judged by our compliance team to be clear, fair and not misleading, and that it does not promote any single business or encourage specific investments or quote interest rates.

If you have any questions about what constitutes a Financial Promotion, please contact us directly.

Our lenders are supporters of UK SMEs; 95% of all applications listed are funded. Our lenders choose businesses to back, and support them beyond the financial transaction. Many change their purchasing habits and support your client’s business beyond the platform.

rebuildingsociety.com is the brainchild of successful Leeds-based entrepreneur Daniel Rajkumar. Daniel began his entrepreneurial career over 15 years ago, building Web–Translations Ltd, a business that works with leading corporations and organisations across the globe. Daniel identified this opportunity in 2000 and his vision for the need of companies for accurate communications in localised market languages makes his company one of the UK market leaders.

After working with numerous start-ups, turnarounds and existing businesses looking to expand, Daniel realised that there was an opportunity to use the web to connect the entrepreneur to funds quicker and easier than the banks.

Read more about rebuildingsociety.com

rebuildingsociety.com is authorised and regulated by the FCA.

Our Firm Reference Number is: 656344.

rebuildingsociety.com is an online peer-to-business lending platform, bringing together UK businesses looking for loans with individuals looking to make a better return than through their savings by lending to businesses.

rebuildingsociety.com, like other crowdfunding platforms, is committed to changing the way in which businesses gain access to funding, and to bettering the returns lenders receive on their savings. However, rebuildingsociety.com believes that we need to go one step further and create a mutually beneficial and sustainable link between businesses and the communities that they grew from and serve.

rebuildingsociety.com prides itself on its ethical ethos, creative thinking and its innovative application of new ideas. Users of rebuildingsociety.com are actively encouraged to engage with the process: entrepreneurs are encouraged to involve their lenders in the business, and lenders to become ambassadors for the businesses to which they lend.

It’s a different way of doing business, but one we believe will ultimately benefit everyone involved.

Lenders' funds are held in a protected client account, which means the funds transferred to the platform are recognised as not being owned by the company. These can be easily returned to lenders.

If our platform were to fail or we become insolvent, we would undertake a Living Will plan, prior to insolvency where such action is in the best interests of all lenders. If this happens:

- you would not be able to sell any Loan Segments;
- you would receive distributions of funds to your external bank or building society account on a quarterly basis;
- you would receive quarterly statements of repayments and continue to receive annual statements (for tax purposes).

Please see our T&Cs for more information.

We take privacy concerns very seriously and respect that different people have different sensitivities with the use and visibility of their personal information.

You can now customise your profile to suit your preferences. This can be done by visiting your profile page. Simply select ‘settings’ from the dropdown menu which appears on the top right of your screen under ‘Signed in as’. You will be redirected to your profile page, from where you will be able to alter both your general account and privacy settings.