Our FAQs should provide the answer to any questions you have about lending, borrowing, fees or other topics. If you cannot find what you are looking for, please contact us.
Words beginning with a capital letter are defined in the Customer Agreement or explained in the Glossary.
How do I lend money?
After you have transferred the money you want to lend to your Account, there are two ways to participate in the Marketplace:
If the Borrower agrees to the terms you are offering, the Loan is advanced and you start generating interest income.
What requirements must I meet to lend money?
Individuals, partnerships with more than three partners and incorporated businesses can lend money; individuals residing outside the UK must be experienced investors.
Please first review the Risks to assess whether lending money is an activity that is appropriate and suitable for your personal financial goals. When you are ready, create a free Account online.
What is the minimum amount I can lend?
The minimum amount you can lend is £5,000 if you bid in an Auction initiated by a business Borrower. You can identify whether the Borrower is a business by checking the first character of the ID of the Proposal to Borrow: "B" is a business, so the minimum amount you can lend is £5,000; "I" is an individual Borrower, which requires a £60,261 minimum lending amount.
You can start your own Auction to lend with a minimum of £25,001. To make your Proposal to Lend available to both business and individual Borrowers, the minimum must be £60,261.
What is the maximum amount I can lend?
There is no maximum amount you can lend, and you can lend to as many Borrowers as you choose.
How safe is the money I lend?
The money you lend is secured by the Borrower's gold or silver at the Agreed LTV with a maximum of 75% for gold and 65% for silver. The investment-grade Precious Metal bars are held under LBT's control and stored in insured, specialised bullion vaults. Should there be an Event of Default, a sufficient amount of the Borrower's gold or silver is sold to repay the amount due to the Lender. This sale of Precious Metal is generally processed within three Business Days. If there is more than one Lender funding the loan, all Lenders are treated equally.
Like any investment, lending involves risk. Whilst we make every effort to ensure that adequate Collateral is provided for all loans, there remains a residual risk that if the price of the gold or silver drops faster than the Collateral can be sold, Lenders may not receive full repayment if the proceeds from selling Pledged Metal are not sufficient.
Do I receive partial repayments of principal over the life of the Loan?
All loans are structured as interest-only loans, meaning interest income is paid to you monthly and the principal is repaid in its entirety at maturity. The Borrower may, however, prepay all or part of the Loan before maturity.
What happens when the Loan matures?
At maturity, your money is returned to your Account along with the final interest payment. You can transfer this money to your Nominated Bank Account, or you can use it again for lending.
Can I request the early return of the money I lend before maturity of the Loan?
LBT facilitates loans that are made for a fixed term, so your funds will be returned to you at the Loan maturity date, unless the Borrower chooses to prepay some or all of a Loan before maturity.
At this time, LBT does not operate a secondary market whereby Lenders can seek to find new Lenders to take over their existing Loan.
Callable Loans, which are facilitated outside the LBT Marketplace, have no fixed term and can be called by the Lender to be repaid at any time with seven Business Days’ notice.
What fees do you charge to lenders?
We do not charge any Loan fees to Lenders. Bank transfer fees may apply depending on the Currency and transfer method you choose when requesting a transfer to your Nominated Bank Account. View fees.
How much interest income do I receive?
The interest income you receive depends upon the Interest Rate you choose and the amount of money you lend when participating in an Auction. Use the Interest Calculator to estimate how much interest you would receive.
Does the interest rate at which I am lending vary during the life of the Loan?
The Interest Rate remains unchanged whilst the Loan is outstanding or varies for floating rates based on the frequency and rate basis chosen.
Will I always receive my monthly Loan interest?
If the Borrower does not have enough money in their Account to pay the interest when due, it is an Event of Default. A sufficient amount of the Borrower's gold or silver securing the Loan is sold, with the sale proceeds used to make the interest payment due to you.
Who can borrow money?
Businesses and High Net Worth Individuals, who own investment-grade gold or silver bars that can be used as Collateral, can borrow money.
What requirements must I meet to borrow money?
Any partnerships with more than three partners and incorporate businesses can borrow money. Individuals must provide a Statement of High Net Worth signed by an accountant before they can borrow.
How do I borrow money?
You first need to identify the precious metal, held in an Approved Vault, that you intend to pledge as Collateral for your Loan, and then move this precious metal into LBT's Goldmoney Holding. You do this by transferring your gold or silver bars into the Customer Allocated Holding that LBT maintains at Goldmoney. Either gold or silver bars can be pledged as Collateral for any one Loan.
Once you have determined which gold or silver bars to use as Collateral, there are three ways to borrow:
What is the minimum amount I can borrow?
The minimum borrowing amount is £25,001 for businesses and £60,261 for individuals. These minimum thresholds apply whether you start an Auction by submitting a Proposal to Borrow or submit a Bid to Borrow in an Auction started by a prospective Lender.
What is the maximum amount I can borrow?
You can borrow up to a maximum of 75% of the value of the gold and up to 65% of the value of the silver that you have stored with LBT. There is no limit to the amount of Precious Metal you can store.
What is Loan-To-Value or LTV?
The Loan-To-Value (LTV) is a ratio of the Loan amount divided by the value of your Pledged Metal.
The Maximum Initial LTV, which is the maximum LTV required in Auctions and at loan commencement, is 75% for gold and 65% for silver.
Can I choose the LTV?
When you create a Proposal to Borrow, you can choose the LTV of less than or equal to 75% for gold and 65% for silver, and this LTV is made known to the Lender. When the Loan is granted, you must pledge gold or silver bars so that the LTV is not greater than the Maximum Initial LTV in your proposal.
With a Bid to Borrow, the LTV is always assumed to be 75% for gold and 65% for silver. However, you may establish a lower LTV on the day the Loan is granted by pledging sufficient gold or silver bars to achieve your preferred LTV.
A pledge applies to whole bars only and either gold or silver bars can be pledged for any one Loan. You may therefore not be able to choose your preferred LTV. For example, if you borrow £100,000 collateralised by a London Good Delivery gold bar worth £400,000 on the day the Loan is granted, your LTV is 25% even if you had wanted a higher LTV.
How much gold or silver do I need to pledge in order to borrow a specific amount?
To calculate the value of Precious Metal you need to pledge in order to borrow a specific amount of money, use this formula: [Loan amount] divided by [your intended LTV].
For example, let's assume that you want to borrow £100,000 against your gold and that you would like the LTV to be 40%. Using the above formula, on the day the Loan is made, you would need to pledge gold with a value of £250,000 (£100,000 divided by 0.40). The Maximum Initial LTV, which is the maximum LTV required in Auctions and at loan commencement, is 75% for gold and 65% for silver.
What gold and silver bars do you accept as Collateral?
You can pledge London Good Delivery gold and silver bars that are stored in an Approved Vault that meet the standards established by the LBMA, and gold kilo bars with a fineness of 999.9 that are newly fabricated by a member of the LBMA and delivered directly by an LBMA member to the Approved Vault. Either gold or silver bars can be pledged for any one Loan.
When do I receive the money I am borrowing?
The Loan amount is credited to your Account as soon as LBT determines that the requirements that need to be fulfilled by you have been met, which is generally within one Business Day from receipt of the Loan documentation completed by you. You can instruct us to remit the full Loan amount or any portion to your Nominated Bank Account. If you choose to keep the Loan amount in your Account for more than one Business Day, please inform us as soon as possible to enable us to comply with the FCA's Client Money rules.
Can I repay a Loan before its maturity date?
Loans facilitated through an Auction on the LBT P2P Marketplace or Credit Broking can be prepaid partially or entirely before the scheduled maturity. You are charged a prepayment fee.
No fee is charged if a Callable Loan is repaid by the Borrower.
Can loans be renewed?
Yes, loans can be renewed. The maturing loan is repaid with a new loan if lenders are willing to fund the new loan. Please contact us at least two months before maturity if you are interested in renewing your loan.
Do I need to state the purpose of the Loan?
Borrowers are not required to state the purpose of the Loan, however, individual Borrowers must confirm that they are not borrowing wholly or predominately for the purposes of a business they operate or intend to operate. Individuals make this confirmation by completing and signing the Borrower Questionnaire and the Borrower Loan Particulars.
What rate of interest do I pay?
The interest you pay depends on the Interest Rate that Lenders are willing to accept for making the Loan to you. The Interest Rate is determined by an Auction process in the Marketplace or if no Auction takes place, through Credit Broking.
What fees do I pay?
A Loan Servicing Fee and metal Storage Fee are charged monthly. View fees. Storage Fees are inclusive of UK VAT (Value-Added Tax), if applicable.
What is a pledge and what does it do?
A pledge is a longstanding mechanism in English law that enables a Borrower to confer to a Lender a Security interest over goods in order to borrow money. In LBT, a Borrower uses their Precious Metal as Collateral to obtain a Loan. The Borrower delivers Pledged Metal to LBT who acts as agent for the Lender. If the Borrower defaults, LBT sells a sufficient amount of the Pledged Metal in order to pay any monies due to the Lender. Thus, the Pledged Metal provides the Lender with a means to obtain payment of money due to the Lender should the Borrower fail to fulfil the commitments stated in the Loan Agreement.
Can the pledge apply to part of a bar?
A pledge applies to whole bars only and to either gold or silver bars for any one Loan. This requirement may mean that your LTV will be less than the Maximum Initial LTV if London Good Delivery gold bars, which typically weigh around 400 troy ounces, are used as Collateral. You may therefore instead choose to pledge kilo bars, which weigh 32.148 troy ounces (assay of 999.9).
Please contact us if you would like information about converting London Good Delivery gold bars into gold kilo bars.
What happens to my gold and silver when I transfer it to LBT's control?
You retain ownership of your Precious Metal but when pledged as Collateral for a Loan, control of Precious Metal passes to LBT for the protection of the Lender.
Where is my gold and silver stored?
When is my gold and silver be returned to me?
Any gold and silver bars that are not pledged can be returned to you at any time upon request. A pledge is released when all amounts owing in relation to a Loan are paid in full.
Can I release part of the pledge?
You can request that a portion of your Pledged Metal collateralising a Loan be released from the pledge, provided the release does not cause the LTV to rise above the Agreed LTV, which is the LTV at loan commencement as set out in the Loan Particulars.
Can I borrow using both gold and silver as Security for my Loan?
A Loan can be collateralised with either gold or silver bars but not with both.
What is an Event of Default?
An Event of Default is any of the events or circumstances described in clause 13.1 of the Standard Loan Terms and Conditions. When a default occurs and after selling sufficient pledged metal to correct the default, LBT will consider early termination of the Loan in order to protect the Lender's interests even if the LTV is not greater than the Agreed LTV as set out in the Loan Particulars.
What happens if a Borrower misses an interest payment or is unable to repay the Loan at maturity?
If the Borrower does not have enough money in his Account to make an interest payment when due or to repay the principal at maturity, it is an Event of Default. LBT will sell a sufficient amount of the Borrower's Pledged Metal to pay what is due to the Lender and any service fee due to LBT.
What is a Margin Warning? What is a Margin Call?
If the price of gold or silver falls and the Loan-To-Value (LTV) rises above the Maximum Initial LTV, which is 75% for gold and 65% for silver, we send a Margin Warning to the Borrower notifying that a Margin Call may be issued if the LTV reaches the Margin Call which is 85% for gold and 75% for silver. If a Margin Call is issued, the Borrower is required to prepay part of the Loan or add more Precious Metal as Collateral so that the LTV drops back to at least the Maximum Initial LTV. The Borrower has 5 Business Days to complete the Margin Call. If during that period the LTV reaches the Metal Sale LTV, which is 90% for gold and 85% for silver, LBT automatically sells a sufficient amount of the Pledged Metal to reduce the LTV back to the Margin Call LTV, even if the Margin Call is in the process of being met. If the Loan is partially prepaid before maturity to meet a Margin Call, a prepayment fee is applied to the amount prepaid.
|Maximum Initial LTV||75%||65%|
|Margin Call LTV||85%||75%|
|Metal Sale LTV||90%||85%|
What happens if the Borrower does not meet a Margin Call?
If the Borrower does not meet a Margin Call when due, it is an Event of Default. LBT will sell sufficient Pledged Metal to reduce the LTV to the Maximum Initial LTV and consider early termination of the Loan in order to protect the Lender's interests.
What is the P2P Marketplace?
In the P2P Marketplace, Lenders and Borrowers interact with each other in Auctions to determine the particulars of each Loan: the amount, Security, Term and Interest Rate. Participation in the P2P Marketplace is subject to the Marketplace Terms.
Who can start an Auction?
Any Customer who proposes to borrow or lend money can start an Auction when logged in to their Account. A potential Borrower initiates a Proposal to Borrow. A potential Lender initiates a Proposal to Lend.
Who can place a bid in an Auction?
Any Customer who intends to borrow or lend money can participate in an Auction started by another Customer. A potential Borrower initiates a Bid to Borrow. A potential Lender initiates a Bid to Lend.
How does an Auction work?
Lenders and Borrowers determine in an Auction the amount and Interest Rate at which they are prepared to lend or borrow
The key component of each Auction is the Interest Rate. Bids are placed at Interest Rates that may or may not be the same rate the Borrower is proposing to borrow or the Lender is prepared to lend. Bids may be outbid by other participants that offer a better Interest Rate. View the Marketplace Terms.
What is the length of time an Auction remains open for bidding?
The Borrower or Lender who initiates an Auction chooses the Auction Closing Date, which must be a Business Day. An Auction remains open for bidding until noon on the Auction Closing Date unless the initiator of an Auction chooses and LBT consents to end the Auction early.
When does an Auction conclude?
An Auction concludes at 12.00 noon United Kingdom time on the Auction Closing Date. Participants in the Auction are notified of the results. If no bids were placed in an Auction, the Auction is automatically archived, and funds and Precious Metal related to the Auction are unlocked.
How long is the Auction?
The Auction starts when you initiate an Auction and ends on the Auction Closing Date chosen by you. The Auction Closing Date must be a Business Day.
What is a Proposal to Lend?
It is one of two different ways to lend money in the Marketplace, the other being a Bid to Lend. You can start an Auction by submitting a Proposal to Lend with the:
Once submitted, the amount of money you are offering to lend is locked in your Account and your Proposal to Lend is available in the Marketplace for customers to view and for potential Borrowers to bid, without disclosing your name.
When the Auction ends, you are obliged to lend the money on the terms you have chosen to those customers who have placed a bid in your Auction and pledged their Precious Metal as Collateral. If your terms are not exactly met, you have one Business Day to decide which if any of the bids to accept. In both instances, the potential Borrower then has one Business Day to decide whether to borrow your money.
What is a Bid to Lend?
It is one of two different ways to lend money in the Marketplace, the other being a Proposal to Lend. You can participate in an Auction in the Marketplace by submitting a Bid to Lend. In your bid you confirm the amount you are willing to lend and the Interest Rate you would like to receive. We lock in your Account the amount of money you are offering to lend. Without disclosing your name, your bid is entered in the Auction for customers to view. You will be notified if you are partially or wholly outbid if your Account preferences are set to receive this information.
When the Auction ends, the Borrower has one Business Day to decide whether to accept the Loan at the Interest Rate(s) bid. If the Borrower accepts the Loan, you are obliged to lend the money at the Interest Rate you have chosen.
What is a Proposal to Borrow?
It is one of two different ways to borrow money in the Marketplace, the other being a Bid to Borrow. You can start an Auction by submitting a Proposal to Borrow with the:
Once submitted, the amount of gold or silver according to the chosen LTV is locked in your Account and your Proposal to Borrow is available in the Marketplace for customers to view and for potential Lenders to bid, without disclosing your name.
When the Auction ends, you have one Business Day to decide whether to borrow and which bids, if any, to accept.
What is a Bid to Borrow?
It is one of two different ways to borrow money in the Marketplace, the other being a Proposal to Borrow. You can participate in an Auction in the Marketplace by submitting a Bid to Borrow. In your bid you confirm the amount you are willing to borrow and the Interest Rate you are prepared to pay. We lock in your Account an amount of your gold or silver based on the Maximum Initial LTV (75% for gold and 65% for silver). Without disclosing your name, your bid is entered in the Auction for customers to view. You will be notified if you are partially or wholly outbid if your Account preferences are set to receive this information.
When the Auction ends, the Borrower has one Business Day to decide whether to accept the Loan.
What is the difference between starting an Auction with a proposal or participating in an Auction with a bid?
By starting an Auction, you have greater control over the terms on which you lend or borrow. If bids do not match the particulars of your proposal, you can decide whether to accept some or all of the bids. In contrast, when you bid in an Auction, you cannot lend or borrow more than the amount of the proposal. You may also be competing against other potential bidders with the result that you may be lending or borrowing less money, or possibly no money if you are completely outbid.
What is the difference between a Proposal to Borrow and a Bid to Borrow?
With a Proposal to Borrow, you have a greater degree of control over the terms on which you borrow. If bids made in response to your Proposal to Borrow do not exactly match the amount and Interest Rate, you can decide whether to accept some or all of the bids. In contrast, when you Bid to Borrow in an Auction, you cannot borrow more than what the prospective Lender has proposed, and you may be competing against other bidders.
Am I obliged to borrow when I place a Proposal to Borrow or Bid to Borrow?
A Customer is never obliged to borrow. Even where the particulars in the borrower's proposal or bid are accepted by a Lender, the Borrower is given one Business Day to accept or turndown a proposed Loan.
What happens when I submit a proposal or a bid?
When you submit a Proposal or a Bid to Lend, the amount of money you intend to lend is locked in your Account. When you submit a Proposal to Borrow, an amount of Precious Metal based on the LTV you have chosen is locked in your Account. When you submit a Bid to Borrow, an amount of gold or silver based on the Maximum Initial LTV is locked in your Account. Without disclosing your name, your proposal or bid is entered in the Marketplace where it remains for the duration of the Auction.
Am I obliged to lend money when I place a Proposal to Lend or Bid to Lend?
You are obliged to lend the amount of money in a Bid to Lend if the Borrower decides to proceed at the end of a Proposal to Borrow Auction. In a Proposal to Lend Auction, you are committed to lending the amount in your proposal if the submitted bids at least match the terms you have proposed. If the submitted bids do not match your proposed terms, you have one Business Day to accept or reject the bids submitted.
What happens after I have placed a Bid to Lend?
When you place a Bid to Lend, we lock the amount of money you have bid and it becomes unavailable for other Marketplace activities or withdrawal. After the Auction has ended, the potential Borrower has one Business Day to decide whether to accept the bid(s). If the potential Borrower accepts your bid, you are obliged to lend the money. If the potential Borrower does not accept, the bids expire and your money is unlocked. The potential Borrower may decide to end the Auction early if sufficient Bids to Lend have been entered at an amount and Interest Rate that are acceptable to the Borrower.
What happens after I have placed a Bid to Borrow?
When you place a Bid to Borrow, we lock an amount of metal based on the Maximum Initial LTV, which means that the metal becomes unavailable for other Marketplace activities or for withdrawal. If the Auction ends and your bid matches the amount and Interest Rate of the Proposal to Lend, you are given one Business Day to decide whether you want to borrow the amount at the Interest Rate stated in your Bid to Borrow. If the Auction ends with insufficient bids for the full amount to be lent or with an interest rate less than stated in the Proposal to Lend, we contact the potential Lender to ask whether they would nevertheless like to proceed and accept the bid(s) that have been submitted. If the potential Lender agrees to proceed, thereby accepting the Interest Rate in your Bid to Borrow, you are given one Business Day to decide whether you want to borrow the amount at the Interest Rate stated in your Bid to Borrow. If the potential Lender does not agree, your bid expires, and your Precious Metal is unlocked.
What is floating interest?
A floating interest rate refers to a variable Interest Rate that changes over the Term of the Loan based on a benchmark rate determined by banks or governments, for example LIBOR or Prime Rate. The benchmark rates are published on the internet by different providers, for example www.global-rates.com
What happens at the end of an Auction?
At the end of the Auction, the Auction is removed from the Marketplace, and no further bids can be placed. LBT contacts the Borrower and Lender(s) to provide the results of the Auction and to enquire whether the Borrower has decided to borrow.
Can my bid be outbid?
Yes, it is possible that another Customer may partially or wholly outbid your bid. LBT notifies you if you are outbid, if your Account preferences are set to receive this information.
How does a Proposal to Lend conclude?
If the particulars of your Proposal to Lend are met, the Borrower chooses to proceed, and LBT deems that all conditions of the Loan are met, your money is released to the Borrower, and you begin earning interest income, which is paid into your Account. If the particulars of your Proposal to Lend are not exactly met by the end of the Auction, you have one Business Day to decide whether to proceed by accepting the bids offered to you. If you choose to proceed, the Borrower has one Business Day to decide whether to borrow. If your Auction is not successful, your money is unlocked, and it becomes available for you to use in other Auctions or to transfer to your Nominated Bank Account.
How does a Proposal to Borrow conclude?
At the end of the Auction, you have one Business Day to decide whether you would like to proceed with the Loan by accepting one, some or all bids placed in your Auction. If you choose to borrow and LBT deems that all conditions to the Loan are met, the Precious Metal you have chosen as Collateral for the Loan is pledged and the Loan amount is paid into your Account, usually within one Business Day. If you do not want to borrow, we unlock your Precious Metal, and it becomes available for you to use in other Auctions or to withdraw from the vault.
How does a Bid to Lend conclude?
If the Borrower accepts your bid, you are obliged to lend the money, and you begin earning interest income at the Interest Rate you have chosen, which is paid into your Account. If the Borrower does not accept, the bid expires and your money is unlocked. The Borrower may decide to end the Auction early if sufficient Bids to Lend have been entered at an Interest Rate acceptable to the Borrower.
How does a Bid to Borrow conclude?
If the Auction ends and your bid matches the amount and Interest Rate of the Proposal to Lend, you are given one Business Day to decide whether to borrow the amount at the Interest Rate stated in your Bid to Borrow. If your bid does not match the amount and Interest Rate of the Proposal to Lend, the Lender has one Business Day to decide whether to accept your bid before you are given one Business Day to decide whether to borrow. If the Lender does not agree, your bid expires and your Precious Metal is unlocked.
Does the Auction end when the particulars of my Proposal to Lend or Proposal to Borrow are met?
The Auction does not automatically end when the particulars are met, but as the Auction initiator, we contact you to ask whether you would like to end the Auction. You can conclude the Auction at that time, or you can wait until the scheduled end of the Auction to allow further bidding.
What happens when my Proposal to Borrow is fully funded?
When your Proposal to Borrow is fully funded, we contact you to ask whether you would like to proceed with a Loan. You can either accept the Loan at the blended Interest Rate that is based on all successful bids placed on your Proposal to Borrow or you can wait until the Auction ends (either one or two weeks as chosen by you when you start an Auction) to allow further bidding.
What is locking?
Locking is the process by which you commit funds or Precious Metal in your Account to a specific proposal or bid in order to support your intention to lend or borrow. Assets that are locked remain in your Account but are not available for any other activity.
How does locking work for a Lender?
If you submit a Proposal or a Bid to Lend, the amount of money you are prepared to lend is locked in your Account. These funds remain locked until the end of the Auction, or in the case of a bid, you are partially or wholly outbid. When your funds are unlocked, they become available for use in the Marketplace or withdrawal from your Account.
How does locking work for a Borrower?
If you submit a Proposal or a Bid to Borrow, the amount of gold or silver based on the Maximum Initial LTV is locked in your Account. This Precious Metal remains locked until the end of the Auction, or in the case of a bid, you are partially or wholly outbid. When your gold or silver is unlocked, your Precious Metal bars become available for use in the Marketplace, withdrawal from your Account or sale.
What is the Maximum Initial LTV?
The Maximum Initial LTV is the maximum Loan-To-Value required in Auctions and at Loan commencement, which is 75% for gold and 65% for silver.
How much gold or silver is locked when I submit a proposal or bid?
The amount of Precious Metal locked is calculated using metal prices at the time you submit your proposal or bid and depends on the size of the Loan you would like to borrow and the LTV.
When you submit a Proposal to Borrow, you choose the LTV that will be applied if the Loan is granted. For example, if you propose to borrow £100,000 at a 50% LTV, £200,000 of Precious Metal is locked. When you submit a Bid to Borrow, the amount of Precious Metal locked results in a 75% LTV for gold or 65% LTV for silver. So if you place a bid to borrow £65,000, £100,000 of silver is locked.
If at the end of the Auction the proposed Loan amount is greater than the Maximun Initial LTV of the value of the Collateral due to a drop in the gold or silver price during the Auction, you must choose whether to pledge additional gold or silver or reduce the Loan amount so that the Maximum Initial LTV is achieved.
Can I choose which bars of gold and/or silver are locked or pledged?
You can choose which bars you want to pledge, but the locking is completed without reference to specific bars.
Can I become a Customer?
Lend & Borrow Trust provides its Services to individuals 18 and over, partnerships with more than three partners and incorporated companies. Individuals residing outside the UK must confirm during the online Account application that they are experienced investors, and in order to borrow, individuals must provide a Statement of High Net Worth signed by an accountant.
How do I open an individual Account?
Opening an Account is free. To become a Customer, click Create Account at the top right of the Website and follow the steps to complete the application online.
Residents in 44 countries can upload their verification document(s) online.
I am a Goldmoney Customer. How do I open an Account?
Goldmoney customers with a Full Holding can open an Account by simply entering their personal details online. We may be able to rely on the documents that you provided to Goldmoney if you consent to Goldmoney sharing your verification documents with LBT.
What kind of personal account can I open?
You can open an individual Account in your name. We do not offer joint accounts at this time.
Can I open a business Account?
Incorporated businesses and partnerships with more than 3 partners can open an Account online. To apply for a business Account, click Create Account at the top right of the Website and follow the steps to complete the application online.
Sole traders and partnerships with less than 3 partners cannot open a business Account.
What are my cancellation rights?
Individuals have fourteen (14) days to cancel their Account application with no obligation or expense and they can participate in the Marketplace once the cancellation period has ended. The cancellation period can be waived if you arrange to visit our office and make the Account application in person.
To cancel your application, send us a message through our Contact page or write a letter advising you wish to cancel.
What documents are required to open an individual Account?
If you reside in the UK, we require a scan of a
If you reside in any other of these 44 countries, we require a scan of a
You can upload the document(s) online when you apply for your Account.
What documents are required to open up a business Account?
Businesses are asked to provide the following:
Businesses outside the United Kingdom are also asked to provide their latest annual business accounts. Additional information may be required depending on the complexity of the business and its ownership structure.
What are certified documents, and why are they needed?
LBT needs to verify the identity of its customers. These documents are:
To certify that it is a true copy of the primary document, the following wording must be placed on a copy of the document being certified:
1) On photo IDs:
“I certify that this is a true and correct copy of an original document in the name of [name of applicant] and a true likeness.”
2) On all other documents:
“I certify that this is a true and correct copy of an original document in the name of [name of applicant].”
Who are acceptable certifiers?
We accept certification by any person on the following list:
Do I need to be a High Net Worth Individual to lend money?
Once you open an Account, any individual resident in the United Kingdom can lend money. Residents outside the United Kingdom must be an experienced investor to lend.
Please first review the Risks to assess whether lending money is an activity that is appropriate and suitable for your personal financial goals.
What fee do you charge?
Our fee schedule is posted here. All fees are inclusive of UK VAT (Value-Added Tax), if applicable.
Can I borrow and lend at the same time?
Yes, you can be a Borrower and Lender at the same time.
Is LBT regulated?
Yes, Lend & Borrow Trust Company Limited is authorised and regulated by the Financial Conduct Authority (709373) to operate an electronic system in relation to lending and is permitted to hold and/or control Client Money. Additionally, LBT is authorised for credit broking, debt administration and debt-collecting. This enables LBT to arrange loans outside of the P2P Marketplace as a credit broker. Other services provided by LBT are not regulated activities.
Do you separate Customer assets from your own corporate assets?
Yes, as a regulated company that adheres to the rules of the FCA, Client Money is kept separate from LBT's own working capital. Additionally, LBT also segregates from its own working capital Customer Funds and the precious metals owned by customers.
Is the gold or silver securing the Loan sufficient to protect the Lender?
A Borrower can borrow up to the Maximum Initial LTV, which is 75% of the value of gold or 65% of silver that is held with LBT. LBT actively monitors the value of gold or silver relative to the size of the Loan (Loan-To-Value). If the market value of the Pledged Metal decreases because the price of gold or silver falls, causing the LTV to rise to 85% for gold or 75% for silver, LBT contacts the Borrower to obtain more Collateral or partially repay the Loan so the LTV returns to the Maximum Initial LTV. If the Borrower does not meet either of these demands, a sufficient amount of the Borrower's Pledged Metal is sold to prepay part of the Loan so that the amount outstanding is again at or below the Maximum Initial LTV of the value of the Collateral.
How often do you calculate the Loan-To-Value (LTV)?
The LTV is calculated throughout each Business Day using the current spot price of gold and silver. LBT completes these LTV calculations to monitor the value of the Pledged Metal to protect the Lender.
What happens if the Borrower does not make a payment when due?
If the Borrower does not make an interest payment when due or fails to repay the principal at maturity, it is an Event of Default. LBT sells an amount of the Borrower's Pledged Metal that is sufficient to remedy the default. The sale is generally completed within 3 Business Days, and the sale proceeds are used to pay the amount due to the Lender. LBT may consider early termination of the Loan to protect the Lender.
If a Borrower defaults and there are two or more Lenders, which Lender gets repaid first?
LBT acts on behalf of all the Lenders, all of whom are treated equally.
If I lend money, is my name disclosed to the Borrower? If I borrow, is my name disclosed to the Lender?
Your name is not disclosed. You borrow, lend and participate in the Marketplace confidentially.
What security measures do you have in place?
The security of your Account is important to us. To protect your Account, we use numerous physical, electronic and procedural controls, some of which are highlighted below.
A secure certificate issued by Symantec is proof that our website can be trusted and that your data is protected by encryption technology. This security is indicated by the green padlock at the top (or bottom) of your screen after logging into your Account. Alternatively, the address bar of up-to-date web browsers turns green to confirm that you are on LBT's secure site.
We use 2-factor authentication, which is based on two separate components, as an extra layer of security. The first component is data known only to you, which is your password. The second component is data that only you possess, which is a 6-digit code that we send to you by email or SMS (your choice). We recommend Customers enable 2-factor authentication. Go to Your Preferences> Security> Additional Security. Enter the 6-digit code on the Account login screen when requested.
We will temporarily block your Account if there are too many incorrect attempts to login. If you do this accidentally or forget your password, contact us on +44 (0) 1726 893017 or by email at firstname.lastname@example.org. We will reset your password after asking security questions you have already entered in your Account to identify yourself. We recommend that you change your password periodically to help protect against unauthorised access of your Account.
We will automatically log you out of your Account after a period of inactivity. This ensures the secure connection is closed and cannot be accessed by anyone else. You should always use the log out button and completely close the browser window when you have finished accessing your Account.
We will communicate with you securely through your Account where you can send and receive messages and documents.
How do I send money to my account at LBT?
You can fund your Account by transferring money from your Nominated Bank Account, which must be in the same name as your Account at LBT. We do not accept cheques, cash, debit or credit card payments.
Can I use a joint bank account with my Account at LBT?
Yes, you can use a joint bank account, provided you are one of the named signatories on the account.
What currencies do you support?
We accept: British pound (GBP), Canadian dollar (CAD), euro (EUR), Swiss franc (CHF) and US dollar (USD). You can borrow and lend any of these currencies, and LBT can complete a foreign exchange transaction for you.
Can I exchange funds that I hold in my Account into a different currency?
Yes, we can exchange your funds into any of the currencies that we support. Please contact us if you wish to complete a foreign exchange transaction.
How can I change my Nominated Bank Account?
Maintaining a single bank account that is used to transfer money to and from your LBT Account is an important security feature. For this reason we recommend that you do not change your Nominated Bank Account.
If a change is necessary, please telephone us at +44 (0) 1726 893 017. You will need to provide a document verifying the new Nominated Bank Account. Please note that an administration fee applies if you have already changed your Nominated Bank Account within the previous 12 months.
Can I nominate multiple bank accounts if I hold more than one currency in my LBT Account?
Yes, you may nominate a separate bank account for each of the different currencies you hold in your LBT Account.
What is the difference between Client Money and Customer Funds?
The Financial Conduct Authority (FCA) regulations require that Customer money related to Marketplace Auctions and Loans be designated as Client Money and held in the Client Money Bank account. Customer money that is used for other purposes, for example for payment of storage fees, is held in the Customer Funds Bank account. For this purpose, LBT operates accounts at Barclays Bank UK PLC designated as "Client Money" and "Customer Funds". These Bank accounts enable LBT to hold money belonging to customers separately from its own corporate assets.
What happens to my money when I transfer it to LBT?
Money that is to be used in connection with the Marketplace, whether for lending, paying interest or repaying a Loan, is received and held in the Client Money Bank accounts that LBT operates according to FCA rules. Money intended for any other purpose, such as to purchase Precious Metal, is received and held in the Customer Funds Bank accounts.
To enable LBT to meet its regulatory obligations, we request that every Customer states the intended use of money they transfer to their LBT Account.
How can I transfer money back to me?
Any available funds in your Account can be transferred to your Nominated Bank Account at any time. To request a transfer, please login to your Account and go to Transfer Funds. Then select the currency, the type of funds and enter the amount you want to withdraw.
We may need to validate your bank details to ensure the security of your money before completing your transfer request. If so, we will inform you and send a micro-payment to your Nominated Bank Account. Once you confirm the exact amount received, we will complete your transfer request.
Are all loans secured by gold or silver?
Yes, all loans are secured by Precious Metal owned by the Borrower, which can be sold in case of a default to protect the Lender.
Are all loans interest-only loans?
Yes, all loans are interest-only loans. The Borrower pays interest to the Lender monthly on the anniversary of the Loan advance date until maturity. At maturity the Borrower repays to the Lender the Loan in full with the last interest payment.
What is a Callable Loan?
A Callable Loan has no fixed term and can be called by the Lender to be repaid at any time with seven Business Days’ notice. Callable Loans can also be repaid by the Borrower at any time with a two Business Days’ notice period.
Callable Loans are not arranged through the Marketplace; instead, LBT communicates with the Borrower and Lender to negotiate the terms of the Loan. Money in relation to a Callable Loan is held in the Customer Funds bank account rather than in the Client Money bank account.
How is interest calculated and paid?
Interest is calculated on an actual calendar day basis and is automatically paid to the Lender's Account on the monthly anniversary of the Loan advance date. For example, a Loan of £100,000 is made for a Term of 24 months at an annual interest rate of 3.00%. The interest payable on this Loan for a month with 31 days is calculated as follows: £100,000 x 3.00% x (31 / 365) equals £254.79
If the Interest Payment Date falls on a weekend or holiday on which banks in England are closed, the interest is calculated and paid on the next Business Day.
The Borrower is required to have sufficient available funds in their Account to make each interest payment when due. If sufficient funds are not available, it is an Event of Default and enough Pledged Metal is sold to pay the amount due to the Lender(s).
Floating rates: For loans with floating interest rates, the current rate is applied to the interest calculations according to the frequency and rate basis chosen. For example, for a Loan with GBP LIBOR 1-month, the latest LIBOR 1-month rate is applied on each monthly anniversary of the Loan advance date. For a Loan with GBP Base Rate, the latest rate is applied on a daily basis, i.e each time the rate changes. Should a rate change not be made public by 11.30am UK time, the new rate will be applied from the day after the announcement was made.
What is the minimum and maximum length of time I can lend or borrow?
Loans facilitated through the LBT P2P Marketplace can be from three (3) months up to sixty (60) months. Loans can be extended up to another sixty (60) months for each loan extension, while the minimum loan extension is three (3) months.
Callable Loans, which are facilitated outside the P2P Marketplace, have no fixed term as they can be called by the Lender to be repaid at any time with seven Business Days’ notice.
Why is the minimum Loan amount for an individual Borrower higher than for a business?
LBT facilitates loans to high net worth individuals and businesses which do not come within the definition of a regulated credit agreement under the Consumer Credit Act 1974 and The Financial Services and Markets Act 2000. Therefore, a Loan to an individual Borrower must be greater than £60,260. This threshold does not apply to a business Borrower for which we have set a minimum borrowing amount of £25,001.
What is my tax liability?
All payments of interest are made without deduction of tax. All fees are inclusive of UK VAT (Value-Added Tax), if applicable. You are responsible for the payment of any tax due. Please consult your tax advisor for details.
Can I lend or borrow in currencies other than British pounds?
We support loans made in British pounds (GBP), Canadian dollar (CAD), euro (EUR), Swiss franc (CHF) and US dollar (USD).
Where is my gold and silver stored?
Why does LBT offer metal storage with Goldmoney
Goldmoney follows industry leading governance practices that provide its customers with assurances of integrity for Precious Metal storage. These include audits, insurance and scanning of gold bars to confirm they do not contain foreign material. More information is available here.
Can I take delivery of my gold and silver?
Any metal in your Account that has not been pledged as Collateral for a Loan or committed in a Proposal to Borrow or Bid to Borrow can be returned to you at any time. To request delivery of your metal, please contact us.
Can I store gold and silver with you even though I am not borrowing?
Yes, any Customer can use LBT to store their gold and silver.
Can I use gold and silver stored with Goldmoney as Collateral
Yes, transfer your gold and silver bars from your Holding to LBT's Customer Allocated Holding, which can then be pledged as Collateral. Only whole bars stored in an Approved Vault can be used. Goldmoney Wealth Limited is based in Jersey, Channel Islands and is regulated by the Jersey Financial Services Commission to conduct money service business.