There was yet another blow for the already hard pressed secured loan industry with the news announced in the last few days that Link Loans was ceasing trading. This was due to their inability to obtain any further funding.

Only days prior to this, the secured loans industry in general felt that Link Loans was bound to be in a precarious situation as their parent company Link Lending had gone into administation due to the refusal of the Bank to continue funding them.

Nobody could really understand how Link Loans could expect to be funded when Barclays refused to fund their parent company and had forced them into administaion. It looked right away that Link Loans were also almost certain to fall.

Link Loans was a fairly recent entrant into the UK secured loans industry. They obtained their business from secured loans brokers and their method of operating was different from that of other secured loan lenders.

When a secured loan broker receives a request from a client to arrange a secured loan for them, the secured loan broker, through his knowledge of the secured loan lenders criteria, knows exactly which secured loan lender fits his clients needs and circumstances.Therefore before even placing the secured loan application with the most suitable lender he knows that the application will reach fruition providing all the facts supplied by the customer are accurate.

The secured loan broker did have underwriting guidelines to follow, as with all other secured loan lenders, but thereafter the rest of the application format was a bit different than it was with other secured loan lenders.

Secured loan brokers had to do a credit check for all the prospective Link Loan customers followed by a Land Registery check at the end of which Link Loans had to be provided with all this information. Link could not approve this or otherwise, but they forwarded the facts to their funders to approve the secured loan application.

When Link Loans heard back from their funders, the secured loan broker was told if their application for a secured loan was acceptable or not.

They were the only secured loan lender who appeared not to have the authority to approve a secured loan application themselves.

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