Committed facility

We can also offer a committed facility, whereby a co-funder guarantees to make a certain amount of funding available for Prospect Capital to drawdown at its sole discretion, subject to meeting certain pre-agreed criteria such as maximum LTV, interest rate payable, maximum amount per loan etc.

In return for this committed facility being provided, Prospect Capital agree to pay a minimum annual return on the entire funding made available whether it is used or not. For further information on this, please contact us.

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All loans are secured by way of a first legal charge over one or more property assets. The responsibility for perfecting the security rests with an independent team of external lawyers who are appointed to act jointly for Prospect Capital and our co-funders. The legal charge is held by our security trustee company, more details of which are provided below.

Prospect Capital continues to monitor and manage the loan throughout its term. This includes regular audits by a specialist team within Prospect Capital. The results of these are issued to our co-funders periodically and include a loan dashboard report.

In the rare event of a loan default and therefore termination of a facility, Prospect Capital will enforce the security and sell the asset, if that is what is required to ensure payment of the loan. In the unlikely event of a shortfall post recovery, Prospect Capital will carry all losses until its portion of the loan has been eroded in its entirety. Only in this event will our co-funder risk any erosion of their capital. These combined factors result in an extremely low risk environment for the co-funder.