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Platform Analysis: ThinCats

Key Information

Founded:
May 2010
Company No:
7248014
FCA Permission:
Fully Authorised
FCA Number:
724062

Account Details

Account Types:
General Investment Account (GIA)
IFISA Status:
Unavailable
Investment Structure/Bid Type:
Manual
Loan Type:
Business

Product Name

ThinCats Loan Market

Investors manually select the loans they wish to invest in. All loans are asset-backed and credit rated by ThinCats. Investors lend to corporate businesses across multiple industry sectors and regions in the UK. ThinCats Secondary Market enables the buy and sell of loans. There is a charge for successful loan sales.

Product Details

Term:
Bespoke
Min Investment:
£1,000
Max Investment:
No Max
Advertised Rate:
7 - 8%

Actual Default v Estimated Bad Debt v Actual Bad Debt

Amount Lent & AUM

Loan Purpose

Financial Summary

31st December 2016 31st May 2016
Revenue £870,000 £1,220,000
Loss -£910,000 -£2,228,000
Net Assets £3,517,000 £427,000
Cash Position £338,000 £559,000

December 2016 figures account for 7 months from May to December 31st. Year ended 31st May 2016 figures are also displayed. ThinCats is a subsidiary of ESF Capital Limited; the ‘Group’ invests in ThinCats and ensures adequate resources are provided to enable ThinCats to achieve its objectives.

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Overview

ThinCats (trading name of Business Loans Network Ltd) is a peer to peer lending platform that connects investors with UK businesses and launched in 2010. Investors are required to manually select the loans they wish to invest in, gaining exposure to corporate businesses across multiple industries and regions in the UK. Specialist ‘Sponsor’ ESF Capital helps evaluate, approve and underwrite borrowers on the ThinCats’ platform.

Risk and Security

The principal risk is borrower default. As investors are required to manually select loans, their exposure may be very limited. This means a default could significantly impact their overall investment. All loans are secured against realisable assets that can be liquidated in the event of a loan default. ThinCats applies a Credit and Security grading to each business, demonstrating the likelihood of default and level of security coverage.

Recovery Process

In the event of a default or the business entering into insolvency, ThinCats will engage independent professional advisors such as property and chattel asset agents, solicitors, reporting accountants and insolvency practitioners. The recoveries process is dependent on the complexity of the situation which may result in it taking longer to recover the assets and return funds to investors.

Withdrawing Funds

Investors who wish to transfer uncommitted funds can send ThinCats a withdrawal request through the ThinCats system and funds should be returned within 3 working days. Investors can sell loan parts on the ThinCats Secondary Market for a 1% fee of the capital outstanding on the loan part. The ability to sell loan parts is dependent on new investors substituting the loan commitment, which is not guaranteed. Some loans are not eligible to be sold on the Secondary Market, such as Community Chest Loans which are unsecured. Investors should take this into consideration when investing.

Platform Failure

If ThinCats were to become insolvent, plans are in place to ensure loan repayments continue unaffected. ThinCats maintains a Clients Money Resolution Plan which exist to support an insolvency practitioner in such an event.