Re: 2 year fixed interest at 6.5%
Originally Posted by
Lindyloo
->
............and with 100% protection. Too good to be true?
Some points.
Firstly, ignore the FCA. The FCA is just a lip service organisation that is part and parcel of the entire corrupt finance and stock market mechanisms in play today. Every day the FCA sits back whilst corrupt CEOs on the AIM markets run companies that should be declared bust. They sit back whilst people all over Facebook, Twitter and internet forums falsely promote stocks and shares to unsuspecting punters (i.e. you and me). This is a crime called Market Abuse, but the FCA sits back and does nothing. FCA accreditation is imo worthless.
Secondly note that the specific terms and conditions of these loans are not available (at least not easily) on the website you are viewing. There is presumably a reason for this.
In the Security section of the website it explains what that term means and it states:
"LC&F makes loans to Borrowing Companies and is reliant on these Borrowing Companies to repay the loans LC&F grants in order for LC&F to be able to make payments of principal and interest to Bond Holders. If a significant volume of loans fall into default, LC&F may not have sufficient funds to be able to pay principal and interest to Bond Holders within the timescales of the Bond"
https://www.londoncapitalandfinance.co.uk/security
The proposition here look to be (tho I may be wrong) to give your hard earned money to a middle man who will take your investment money and loan it out (at interest of course) to Borrowing Companies.
They will of course charge more interest to the Borrowing Companies then they will pay you out in interest.
Lots and lots of companies are run into the ground on a daily basis, some deliberately. When they dissolve, it comes down to the Ts&Cs as to whether you lose all your money. In some financial sectors the Gov't agrees to underwrite companies and pay out citizens (up to a point) if things go awry. If such a backing/underwriting does not exist, then you are at significant risk of losing everything if the company closes shop.
The finance markets overall are not on the up. These are not "golden years". The price of oil has been decimated. The price of minerals has been decimated. Lots and lots of companies have folded already under this pressure.
A final note. Understand that finance in general is corrupt and fraudulent. Banks lend out far more money than they actually have. Read that again. If the bank owns say £1 BILLION they will lend out maybe £10 BILLION. How can they do that? Well they shouldn't be allowed to as it is clearly fraud, but they have their own rules and they run the whole show, governments, countries etc. They worked out long ago that people don't come into the banks on a daily basis asking for all their money. So they decided to lend out more than they have on that basis. If everyone walked into the bank today (as happened some years ago with Northern Rock) then the Sh*t hits the fan because the money you think is in your bank account, doesn't actually exist. It is nothing more than a number on a computer screen held in a database. There are no actual pound notes or dollars sitting in a vault somewhere with your name written on them, equally there is no gold sitting in a vault underpinning YOUR money. It is vapourware nothing more.
This entire system hangs constantly on a knife edge. If a crisis occurs, and everyone rushes to the bank to withdraw their money, the banks will close quickly and people will realise that their money doesn't exist. This has happened throughout Europe in the past few years. Italy for example stopped people taking cash out of the country, limited greatly how much money people could withdraw from banks and restricted credit card usage.
With all this in mind you must ask yourself, will this company LC&F lend out more money in loans to Borrowing Companies, than it actually has cash for? If they do, then when things get sticky, you will probably lose your money.
This is all my own opinion and interpretation from what I have quickly read and does not constitute financial advice.
Good luck.