This short guide provides you with an introduction to how you can earn attractive returns of between 5-12% pa* by investing in Peer-to-Peer Loans secured against UK income producing Commercial Property. *After fees, but before bad debts & taxes. Capital at risk

1. For more information about lending, please call +44 (0)203 397 8290 or email us at admin@proplend.com
Peer-to-Peer Lending Guide
Learn how to invest in secured Peer-to-Peer Loans
This short guide provides you with an
introduction to how you can earn
attractive returns of between 5-12%
pa* by investing in Peer-to-Peer
Loans secured against UK income
producing Commercial Property.
*After fees, but before bad debts & taxes. Capital at risk
Retail Office Industrial
Proplend 2016

2. For more information about lending, please call +44 (0)203 397 8290 or email us at admin@proplend.com
P2P Lending Core Principals
1. Circumvents the traditional
financial institutions
2. Multiple investors lending to
a single borrower
3. Direct Loan Agreements
between Investor and
Borrower
1
Peer to Peer Lending
Peer-to-Peer Lending (P2P Lending), also known as Loan or Debt Crowdfunding, is the process
of connecting investors directly to borrowers, circumventing traditional banks and financial
institutions. This new asset class offers diversification and attractive yields to investors, especially
in this current long-term low interest rate environment.
P2P Lending History & Figures
1. Started 10 years ago with Zopa, consumer loans
2. April 2014, P2P came under regulatory legislation of Financial Conduct Authority (FCA)
3. Over £5bn lent to date (December 2015)*
* Liberum AltFi Volume Index

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P2P Commercial Property Lending
PROPLEND IS A PEER-TO-PEER LENDING PLATFORM THAT CONNECTS INVESTORS DIRECTLY TO BORROWERS WITH
LOANS SECURED AGAINST INCOME PRODUCING UK COMMERCIAL PROPERTY
Commercial Property Borrowers are typically property investors who already own a commercial property, and need to
refinance an existing loan that has come to the end of its term.
There is approximately £200 billion of outstanding Commercial Real Estate debt in the UK. 25% of which is in the sub £5m sector
and requires refinancing within the next 2-5 years. Lending for commercial property, in the UK, has traditionally been dominated
by banks, which accounted for c.90% of the market. At the height of the market, in the run up to 2007, there were 55-60 banks,
building societies and financial institutions actively servicing this market. Today there are only around 10 - 12. There is a clear
dislocation in the supply and demand of funding available and required.
The effect of this funding shortfall is an increase in the premiums that commercial property owners are prepared to pay for
commercial property loans, which leads to an opportunity for p2p lending investors.
By effectively crowdfunding the commercial property loan requirement, borrowers gain access to funding otherwise not
currently available, and investors gain access to low risk, fixed income producing opportunities.

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Proplend
SECURED PEER-TO-PEER COMMERCIAL PROPERTY LENDING
Proplend offers investors the ability to earn reliable and attractive fixed income returns of between 5-12% pa*
by lending directly to the owners of income producing commercial property with every loan being supported
by a 1st legal charge over the property.
*After fees, before bad debts and taxes
LOAN CAPITAL PROTECTION AND SECURITY
Each loan is secured by a 1st legal charge against
the Commercial Property offered by the Borrower
as collateral which is registered with the Land
Registry. If appropriate, additional security might
be taken in the form of personal guarantees and
debentures.
A 1st legal charge is the most traditional form of
loan security.
A clear legal framework in the UK means that
commercial property debt offers a high recovery
rate, if the Borrower fails to repay the loan; the
Property can be sold and its proceeds used to pay
back Lenders.

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The Proplend Loan Tranche
*Before fees, bad debts and taxes
Proplend understands that not every investor has the same return requirement or appetite for risk. In
recognition of this, Proplend created the Proplend Loan Tranche, which splits the whole loan into 3 parts or
‘Loan to Value (LTV) based tranches’, allowing investors to choose which tranche best suits their risk profile.
• The tranches are split based on
the LTV, the amount (%) the
borrower requires vs. the value of
the property.
• Investors can choose which
tranche, or a combination of
tranches to invest in, and how
much to invest
• The higher the LTV the greater the
risk, but also the greater the
return.
• Tranche A offers 200% capital
protection, meaning the property
would have to fall in value by
over 50% before the investment is
at risk. Tranche B offers 154% and
Tranche C 133%.
• In the example shown, the
borrower is paying a blended rate
of 6.5% pa (average of the three
tranches) and the investors are
offered fixed income returns of
5.5%, 7,5% and 10% pa*

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How to Invest

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Risks
How Proplend Mitigates Risk
Fall in property income
• Loan amounts and terms will be determined by the quality of the tenants and occupancy terms, with resulting income protection
features such as lower initial loan amounts and interest cover covenants.
• Proplend retains 6 months worth of interest to cover vacancies or borrower default.
Fall in property value
• In a 75% LTV loan, investors in Tranche C have a minimum cushion of a 25% fall in property value. Tranches A and B offer a greater
cushion.
• Post crisis drops in property values of 30-40%, without a full recovery, make a further significant drop less likely.
• Significant drops in value increase the percentage of income relative to value, this then provides attractive yield returns for distressed
asset managers.
Lack of suitable investment opportunities
• Given the size of the outstanding funding gap, especially in the sub £5m loan sector and the lack of market participants, investors
should be able to benefit from current market conditions.
Illiquidity
• Investors should expect that any loan they enter into will remain outstanding for the term of that loan.
• Investors are being paid a illiquidity premium.
• The Proplend Loan Exchange offers a secondary market for investors who wish to sell a loan part prior to the end of the loan term. It
cannot, however, guarantee a buyer for that loan part will be found or the price that the loan part may sell for.
Prepayment
• Loan terms will include prepayment protection in the form of penalties, these will be agreed on a loan by loan basis and be
transparent to investors.
Loan default
• In the case of a Loan default, Proplend Security Limited, who enters into the Security Documentation with the Borrower, will commence
recovery of the debt due under that Security package.

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Statistics
Proplend Timeline
Jan 2014: Concept born & completed first loans pre-platform
Apr 2014: GLI Finance (Institutional investor) equity investment
Oct 2014: Platform goes live
Apr 2015: Secondary platform goes live
Tranche A
(0-50% LTV)
Tranche B
(51-65% LTV)
Tranche C
(66-75% LTV)
Whole
Loan
Gross Investors Returns pa
* After fees, but before bad debt and taxes
Loan reviewed £110,000,000
Property Funded £11,856,800
Loans funded £7,620,500
Deal Pipeline £8,600,000
Average LTV 62.24%
Average ICR 1.65x
Average Loan £846,722
StaKsKcs
Late Payments NIL
Loan Defaults NIL
Investor Losses NIL
Loan Book Status
Gross
returns
6.98% 8.30% 10.44% 7.39%
Net
returns*
6.28% 7.47% 9.39% 6.65%
Statistics and Loan book as of December 4th, 2015

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Properties Funded

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Contact
Contact us today to learn more about Proplend and how to invest
and earn 5-12% pa*
Visit us online at www.proplend.com
Register as a Lender
Email us at admin@proplend.com
Contact a Proplend Representative at: 0203 327 8290
*After fees, but before bad debts and taxes
Proplend Ltd is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register under firm
registration number 662661. Proplend Ltd registered office is 145-157 St John St, London, EC1V 4PW (Company Number: 08315922).
Copyright © Proplend 2014-2015. All rights reserved.
Proplend operates a peer to peer lending platform specialising in
commercial property loans supported by first charge mortgages.
Whilst loan investments are secured against property, capital is
still at risk and therefore Proplend lenders face the possibility of
losing money. Investments in commercial loans are long term in
nature and may not readily be realisable.
Proplend is authorised and regulated by the Financial Conduct
Authority (FCA) no 662661.
Proplend does not offer advice or make recommendations.
All Peer-to-Peer Lending platforms fall outside the scope of the
Financial Services Compensation Scheme (FSCS).