We’re very particular about our Borrowers. We get to know as much as possible about them and take an holistic view of the person or business/project. We’re choosy but fair.
Folk2Folk undertakes the normal credit enquiries, including credit referencing, status, asset ownership, due diligence and often a personal meeting prior to the loan being deemed suitable. These enquiries are carried out by Folk2Folk loan officers who have legal and banking expertise.
But once both the nature of the loan and the Borrower have passed our required internal standards they are passed to our Credit Committee who use their expertise and collective local knowledge to take an holistic view. This is where we believe we are unique.
Using local knowledge
Our Credit Committees consist of a Valuer, a Solicitor and a Chairman. The Committee uses collective local knowledge of a person gained from personal knowledge via local accountants, lawyers, or bank relationship managers. These enquiries build an independent background picture of the Borrower, their standing in the community, their length of time in it, and their general reliability.
An holistic view
By gaining a better understanding of the Borrower we know so much more about the person - their character, their history and their reliability – not just their credit history. We believe this enables us to better assess potential risk and ensure that the Borrower is capable of taking on and servicing the loan.
Our guiding principles
- Security for the loan must be in the form of freehold property only
- The valuation of the freehold property must be a strict bricks and mortar valuation
- The maximum loan to property value must not exceed 60%
- The Borrower has to be in good standing both according to computerised credit rating information, but also in the community itself
- The securitisation of a loan is done by local lawyers who are able to identify local factors that may affect the sense of the lending
- Borrowers have to be stable, not engaged in meteor-style business ideas, have a freehold to back them up, have a good track record in their community, be known to us or a trusted professional and be able to afford it