Does 10% p.a.
So what is the
capital sound investment opportunity?
Read on. • The world “money markets” has for Second Mortgages, Hire
seen signiﬁcant change in the last Purchase and Payday Loan
two years and the term “credit products.
crunch” has been commonly used.
An annual return The net result has seen a severe • 1st Stop Group is well established
on capital of 10%. lack of liquidity in the money and ﬁnanced by the current
markets due to lenders having to directors and has an infrastructure
Funds secured preserve and replace their balance that can manage signiﬁcant growth
against speciﬁc sheets and recover from previous This ensures all money invested is
lending policies. This lack of used for further lending and is not
portfolio of loans, liquidity in the lending market has diluted by establishment costs. It
which are asset created a large and unfulﬁlled is secured by way of a debenture
backed. demand. against a portfolio of loan
This investment is • Experian, the UKs biggest credit
for high net worth reference agency estimated the size • Interest is payable up to 10% per
individuals only. of the “non standard” market to be annum throughout the investment
7.8M people in May 2008. This period, compared to ﬁscal
Our minimum ﬁgure will have risen signiﬁcantly. predictions for interest rates on
cash deposits, which remain below
investment is 2% for the next 3-5 years according
• 1st Stop Group has successful
£25,000 up to experience in underwriting and to the Centre for Economic &
£1 million. collecting in the non standard Business Research
market, both in previous plcs and
Term of investment more recently for the last three • We can gear your investment
36, 48 or 60 years within it’s own lending by an amount between £25,000
months. portfolio. 1st Stop Group currently and £1m and agree a term from 36
generate in excess of 350,000 to 60 months. At the end of the
applications for credit per month agreed term you may like to invest
and is looking to secure additional again or alternatively realise your
funding to satisfy market demand capital.
Why 1st Stop?
Experience! There is no substitute In the event that an account falls into
and we have operated for many arrears in your portfolio we will
years in the non-standard lending replace it with an up to date account
market. The current and foreseeable from our own established portfolio.
lack of liquidity in the consumer
lending market has created a We have taken a cautious approach
substantial pent up demand. This to “Bad Debt”. Our plans are
also provides a great opportunity to predicated on arrears of 14% with a
be very selective of future customers. bad debt ratio of 4% p.a. In reality,
since the inception of the lending
Historically, competitive pressures in book in November 2007, the actual
the consumer lending market have arrears have been circa 7% to 9%
pushed lenders into taking what are with a bad debt ratio below 4%.
now understood to be inappropriate
risks for unacceptably low returns.
These forces no longer exist in
today’s market as most lenders are
unable to operate due to the lack of
availability of wholesale funding
lines. 1st Stop Group can therefore
be client selective in respect of credit
risk and product pricing.
1st Stop Group do not have a legacy
portfolio of ”toxic loans” which are in
default or negative equity, unlike
other lenders, and therefore we do
not need to commit signiﬁcant
resources to recovering defaulting
“ The only source of knowledge is
– Albert Einstein ”
Ist Stop Group takes a prudent approach in it’s lending policies. Whilst we take security
against the customer’s property, we also strictly adhere to the Oﬃce of Fair Trading
guidelines and ensure that the customer has both the ability to repay their loan and
established intent to repay their loan.
1st Stop Group also provide short term Payday loans. These are used as low value, low risk
advances. If the client demonstrates the intent and ability to repay then the client is oﬀered
a higher value product within our product lifecycle.
Ist Stop also oﬀer Hire Purchase contracts. The car ﬁnanced represents our security. The
security is registered with HPI to ensure that our interest is recorded on the vehicle. Whilst
the security of the asset is very important we carefully assess the individual customer to
ensure that he/she has the intent and ability to repay our loan.
From the customer’s perspective their car is essential but should they unfortunately default
on payments the security can be realised very quickly. The customer is fully aware of these
• Secured lending new business volumes in Q2 customers and stop serving the customers at
2009 were down 84% vs. Q2 2008 due to a lack the lower end of their scorecards.
of funds in the market.
(Source: Experian May 2008)
(Source: Finance and Leasing Association)
• 1st Stop Groups ‘base case’ business model is
• The size of the non standard market was predicated on only writing c.£2.4m of new
estimated at 7.8M customers of which 5.5M secured loans each year (c.400 loans), which
would meet a generic proﬁle of a motor ﬁnance represents less than 0.02% of the total lending
customer. This was overlaid with a model taken (not for house purchase) secured against
from their existing credit bureau agreements residential property in the UK, which exceeded
showed only 6.5% of those customers actually £19b in Q2 2009. This ﬁgure has increased year
had a car on ﬁnance (although there would be to date in 2010.
others with a car ﬁnanced by a personal loan).
The non standard market is growing as The huge demand for our product types and the
mainstream lenders focus on better quality market underserve allows us to be very selective.
• There is a lack of liquidity in the market due to onto the market has resulted in second hand car
the availability of funds. Some that had taken values increasing in real terms. This makes
inappropriate risks to “buy market share” are realising the value of cars recovered much more
now restructuring their balance sheets and are attainable.
unable to lend. Their lending criteria is thus very
restrictive. • The market has been underserved for the last
two years and there is signiﬁcant pent up
• The property market has settled down. Indeed demand.
prices have now started to slowly increase and
are forecast to continue slowly rising over the • There are fewer lenders in the lending arena in
coming years – an ideal time to lend. general and speciﬁcally in the “non-standard”
• New car sales have been historically low over
the last two years. This lack of stock coming
Our Target Market
Knowing our customer: Bespoke products:
• In full time, stable employment. Secured Loans
• Able to demonstrate that they have the
income to pay their new commitment. • Secured against the family home.
• Able to demonstrate that they have the intent • Maximum loan of £10,000, with a minimum
to pay by either a home visit or telephone £1,500.
interview. • Typical Interest rate to customer - circa
• A risk proﬁle that demonstrates that they 2% to 5% per month (within typical
currently honour some existing credit market price range).
commitments and a full explanation of any • Typically repayable over a maximum period of
credit history problems. 60 months.
Security and best use of it: Hire Purchase
• A vested interest in the property used as • Secured against the family car with equity.
security for a loan as it is their family home or • Typical loan range of £2,000 to £8,000. Tenants
family car. will be restricted to lower lend.
• A need to fund major expenditure, such as • All loans registered and secured on vehicle
home improvements (which will add value to • Interest rate to customer - circa 12% to 24%
their home and demonstrates pride in it), debt ﬂat (within typical market price range).
consolidation (which generally increases the • Repayable over a maximum period of 48
ability to pay) or a car which they require for months, typically 36 month or less.
family use and to get to work .
• Typical loan £150 initially with £250 upon
• Repayment period up to 31 days.
• Loan is unsecured.
• Rate of £35 per £100 lend.
Lending Typical Examples
£3,000 Secured Loan £5,000 Secured Loan
Advance £3,000.00 Advance £5,000.00
Term 36 months Term 60 months
Rate 2.5% Rate 2.5%
Acceptance fee £390.00 Acceptance fee £650.00
Set up fee £450.00 Set up fee £750.00
Total Loan £3,840.00 Total Loan £6,400.00
Payment £163.01/month Payment £207.06/month
Total Repayment £5,868.36 Total Repayment £12,423.60
APR 63.8% APR 54%
£7,000 Secured Loan £10,000 Secured Loan
Advance £7,000.00 Advance £10,000
Term 60 months Term 60 months
Rate 1.75% Rate 1.75%
Acceptance fee £910.00 Acceptance fee £1,300.00
Set up fee £1,050.00 Set up fee £1,500.00
Total Loan £8,960.00 Total Loan £12,800.00
Payment £242.40/month Payment £346.28/month
Total Repayment £14,544.00 Total Repayment £20,776.80
APR 39.4% APR 39.4%
£2,400 Hire Purchase £5,000 Hire Purchase
Advance £2,400. Advance £5,000.
Term 30 months Term 36 months
Acceptance fee £395.00 Acceptance fee £595.00
Document fee £75.00 Document fee £99.00
Option to purchase fee £125.00 Option to purchase fee £125.00
Payment £137.42 Payment £244.00
Charge for goods £1,992.60 Charge for goods £4,008.36
Total repayment £4,322.60 Total repayment £9,008.36
APR 65.6% APR 53.1%
£150 Payday Loan £250 Payday Loan
Advance £150.00 Advance £250.00
Term up to 31 days Term up to 31 days
Interest £52.5 Interest £52.50
Total Repayment £202.5 Total Repayment £337.5
As each of our lending products are held in individual companies, the investor can choose which product to
invest in. Investors have a choice of Home Loans, Car Loans and Payday Loans, with each product having
For a customer to qualify for a Home Loan, their mortgage must be up to date with their main lender and meet
1st Stop’s underwriting criteria. 1st Stop will then take a unilateral notice over the customer’s property as
security on it’s loan. This means that in the event of the sale of the property or default of the loan, 1st Stop will
be in a prime position to recover any outstanding monies.
1st Stop will purchase a vehicle from a dealer on the client’s behalf via a Hire Purchase agreement. 1st Stop
owns this asset and hires to the client. On receipt of the customers ﬁnal payment, the title to the vehicle reverts
to the customer. The car acts as realisable security should the customer default on the agreement.
Whilst payday Loans do not oﬀer any form of tangible security with the customer, the debt is eﬀectively paid
back in full every month, making the loan immediately realisable. New loan advances are typically £150.00 so
the risk is minimised.
For each £25,000 investment block the company will issue an assignment over a batch of up to date customer
Agreement replacement policy
To protect the investment against arrears, the company will replace any agreement held as security should the
customer become 2 months in arrears with an up to date replacement agreement. This ensures the investor
holds a healthy portfolio at all times as security.
Guaranteed by the company
Should the customers default to a level where their repayments do not meet that of the investors repayment,
and the company has no replacement agreements to issue then the company itself will guarantee the investors
A good team of operators
1st Stop has the enormous beneﬁt of a expenditure.
very strong Board and Senior • An independent credit reference is
Management Team that has substantial taken from a leading credit bureau,
experience in this speciﬁc ﬁnance sector. conﬁrming credit status, voters’ role
There is no substitute for walking the information and current
hard yards and our combined experience commitments.
ensures we have honed our skills in
making the right credit decisions, the • All customers are spoken to, prior to
right product oﬀering and marketing to release of funds so they understand
the right target audience. the credit commitment they are about
to enter and the consequences of non
We embrace the use of technology, much payment. If the customer does not
of which is bespoke but no credit satisfactorily explain the reason for
sanction is automated. We may use credit previous credit problems or doesn’t
score, but only to reject customers that appear to demonstrate intent to
do not ﬁt our strict underwriting criteria, honour the agreement, we will
saving time and unnecessary cost. withdraw the oﬀer of credit.
• All credit decisions are agreed by a • All customer contact is managed at 1st
Director or Senior Manager, none are Stop Group by our experienced team –
automated. whether this be collection activity or
simple administration issues.
• We ensure that we investigate the key
facts provided by the customer. This
includes full customer veriﬁcation,
documented income proofs and
An exceptional investment opportunity.
10% p.a. return guaranteed for the term of
Each investment is secured against
All loans are secured against the
customers family home or car, depending
on the product chosen.
If you wish to discuss the opportunity
with our Investment Director, please
contact us via:
0844 372 5268
THE CONTENT OF THIS PROMOTION HAS NOT BEEN APPROVED BY AN AUTHORISED
PERSON WITHIN THE MEANING OF THE FINANCIAL SERVICES AND MARKETS ACT
2000. RELIANCE UPON THIS PROMOTION FOR THE PURPOSE OF ENGAGING IN ANY
INVESTMENT ACTIVITY MAY EXPOSE AN INDIVIDUAL TO A SIGNIFICANT RISK OF
LOSING ALL OF THE PROPERTY OR OTHER ASSETS INVESTED.
This communication is exempt from the general restriction authorised person specialising in advising on investments of
contained in section 21 of the Financial Services and Markets the kind in question.
Act 2000 (“FSMA”) on the communication of invitations or
inducements to engage in an investment activity on the The information contained in this brochure is selective and
ground that it is made to certiﬁed high net worth individuals. does not purport to contain all the information that recipients
At least one of the following requirements must be met for an may require. Recipients should conduct their own
individual to qualify as a certiﬁed high net worth individual: investigation and analysis of the business and its business
proposal and of the information contained in this brochure
(a) Having had, during the ﬁnancial year 2010 - 2011, an annual and are advised to seek their own professional advice on the
income to the value of £100,000 or more; legal, ﬁnancial, taxation and other consequences of investing
(b) Having held, through the ﬁnancial year 2010 - 2011, net in1st Stop.
assets to the value of £250,000 or more. Net assets for these
purposes do not include: None of 1st Stop, nor its aﬃliated partnership or bodies
corporate, nor the directors, shareholders, managers, partners,
(i) The property which is a primary residence, or any loan employees or agents of any of them, has veriﬁed any of the
secured on that residence; information contained in this brochure and no such party,
(ii) Any rights under a qualifying contract of insurance within entity or person makes any representation or warranty, express
the meaning of the Financial Services and Markets Act 2000 or implied, as to the accuracy, reasonableness or completeness
(Regulated Activities) Order 2001; of the information contained herein. All such parties, entities
(iii) Any beneﬁt (in the form of pensions or otherwise) which and persons expressly disclaim any and all liability for, or based
are payable on the termination of service or on death or on, or relating to any such information contained in, or errors
retirement and to which the individual is (or his dependents in or omissions from, this brochure or based on or relating to
are), or may be, entitled. the recipients’ use of this information.
This communication is only directed at high net worth This brochure includes certain statements with respect to the
individuals who have signed the form of certiﬁcate prescribed anticipated future performance of 1st Stop and as to the
by FSMA under which, inter alia, an individual may self-certify market for its products. Such statements reﬂect various
that she/he meets the criteria listed above. The controlled assumptions made by the management of 1st Stop which may
investment or controlled activity to which this communication or may not prove to be correct.
relates is available only to high net worth individuals who have
returned a signed copy of this certiﬁcate to 1st Stop No representation is made as to the accuracy of such
Any individual who is in any doubt about the investment to
which this communication relates should consult an