Our investment process
Basset & Gold Plc. (the Bond Issuer) was established to provide financing for online marketplace lenders and direct debt facilities. Our profit rests between the returns we generate and the interest rate we pay you, which creates an alignment of interests, as we only make money if our investors make money.
To date, Basset & Gold Plc has used the vast majority of Bond proceeds to finance a large facility agreement with an FCA-regulated short-term consumer lender. This means that Basset & Gold Plc’s ability to repay the Bonds is heavily linked to the FCA-regulated lender’s ability to service the facility agreement. For this reason, Basset & Gold Plc benefits from a corporate debenture over all of the FCA-regulated lender’s assets, including tens of thousands of individual loans. Our rigorous investment process carried out by our skilled investment team includes in-depth financial analysis, legal and accounting checks as well as corporate and procedural checks. Our investment team comes from leading financial services and investment firms and are dedicated to making investments that give you access to attractive profits and security levels.
As of December 2018, Basset & Gold Plc is in the final stages of negotiating a series of significant new short-term financing agreements with an online real estate platform and several development finance specialists in the UK. We will provide further details to investors if and when these agreements are completed. The high turnover associated with the short-term finance space normally entails high volumes of procedural work in assessing and performing due diligence on potential opportunities. By resourcing ourselves to overcome the procedural barriers to entry in what we view as a lucrative market, we are able to offer higher risk-adjusted returns than is produced by most other forms of lending.
The balance of investments held by Basset & Gold Plc will change over time. The move to increase Basset & Gold Plc’s exposure to short-term financing for UK real estate has always been part of its strategy because it should continue to produce healthy Bondholder returns, whilst affording a greater degree of diversification. We prioritise investment quality over diversification and would never wish to dilute quality in order to have a broader range of investments.
In the rare event that our investment team determines that a direct loan might be a more appropriate way to manage risk or opportunity than providing a facility to a professional lender, we may consider a direct asset-backed loan facility.
Our standard investment process includes various steps to help safeguard investment capital, including:
- Initial opportunity filtering
- Historical loan book performance
- Current loan book
- Evaluating underwriting procedures
- Corporate due diligence including accounting and legal sign-off
- Determining applicable assets to secure the facility
- Preliminary internal authorisation by the credit team
- Agree final legal contracts
- Basset & Gold board authorisation
- Funding provided
This means that you benefit from the attractive returns that such lending yields, whilst reducing your exposure to risks that individual involvement carries in some peer-to-peer and online lending. We perform due diligence checks on borrowers so you don’t have to. We collect information, examine balance sheets and complete other checks that are essential to protect our funds. Loans are also asset-secured, meaning that in the event of borrower default we have a right to sell these assets to help cover the loan capital and your investment. We take on all these cumbersome and time-consuming processes so you don’t have to, making it a truly passive investment.
We believe we have access to better deals than private investors and this in turn offers the opportunity to potentially achieve institutional-level returns on your investment, meaning YOU get higher interest rates.
Loans are backed by assets, such as corporate debentures, property and other forms of security in order to protect our investments and your capital. For example, if we advance cash to a borrower, we will check that its assets (including the book value of any underlying on-lending by the borrower) exceed the total value of money borrowed.
Besides being paid directly into your bank account, your interest is accumulated from the moment the application window closes so you don’t need to wait until your money is invested or wait in an “investment queue” until your money is deployed.