There was yet another blow for the already hard pressed secured loan industry with the news announced in the last few days that Link Loans was ceasing trading. This was due to their inability to obtain any further funding.
Simply a few days before this Link Lending, out of whom Link Loans sprang, went into administration due to the fact that Barclays Bank who funded them refused to give any more funds for them to lend. This meant that the state of Link Loans was not strong.
Nobody could really understand how Link Loans could expect to be funded when Barclays refused to fund their parent company and had forced them into administaion. It looked right away that Link Loans were also almost certain to fall.
Link Loans was a fairly recent entrant into the UK secured loans industry. They obtained their business from secured loans brokers and their method of operating was different from that of other secured loan lenders.
Secured loan brokers, with their extensive understanding of each individual secured loan lender's criteria know which lender is most suitable for each individual customer's requirements. This means that before forwarding a secured loan application to any given secured loan lender the broker knows that the application for a secured loan will be acceptable and that his customer will be granted the secured loan funds, as long as all information supplied by the applicant is true.
Link Loans did have underwriting criteria which they supplied to brokers, but after that the way they were required to work was different from that of other secured loan lenders.
When a secured loan broker made the decision that Link Loans was the best secured loan lender for their customer's needs, they had to carry out a credit check on the prospective borrower. A land search had then to be carried out This was then forwarded to Link Loans who did not have the authority to approve the application. They had to give all the information to their funders to ascertain the prospective borrower's suitability.
When Link Loans heard back from their funders, the secured loan broker was told if their application for a secured loan was acceptable or not.
Other secured loan lenders had the authority to approve secured loan applications themselves. - 30462
Simply a few days before this Link Lending, out of whom Link Loans sprang, went into administration due to the fact that Barclays Bank who funded them refused to give any more funds for them to lend. This meant that the state of Link Loans was not strong.
Nobody could really understand how Link Loans could expect to be funded when Barclays refused to fund their parent company and had forced them into administaion. It looked right away that Link Loans were also almost certain to fall.
Link Loans was a fairly recent entrant into the UK secured loans industry. They obtained their business from secured loans brokers and their method of operating was different from that of other secured loan lenders.
Secured loan brokers, with their extensive understanding of each individual secured loan lender's criteria know which lender is most suitable for each individual customer's requirements. This means that before forwarding a secured loan application to any given secured loan lender the broker knows that the application for a secured loan will be acceptable and that his customer will be granted the secured loan funds, as long as all information supplied by the applicant is true.
Link Loans did have underwriting criteria which they supplied to brokers, but after that the way they were required to work was different from that of other secured loan lenders.
When a secured loan broker made the decision that Link Loans was the best secured loan lender for their customer's needs, they had to carry out a credit check on the prospective borrower. A land search had then to be carried out This was then forwarded to Link Loans who did not have the authority to approve the application. They had to give all the information to their funders to ascertain the prospective borrower's suitability.
When Link Loans heard back from their funders, the secured loan broker was told if their application for a secured loan was acceptable or not.
Other secured loan lenders had the authority to approve secured loan applications themselves. - 30462
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