Security
Acceptable security
Like all lenders, we require some form of security if we are lending your business money. We require this security in case the loan repayments are not met. We will look at each application on a case by case basis and try to reduce our requirement for directors' personal guarantees, or the need to put your personal assets at risk. The following is a list of assets that we would typically secure the loan against. The actual security required, will be based on the amount and term of the loan, the credit worthyness of the business and other factors.
Primary Security
- Company tangible assets
- Company stock
- Company income
- Company shares
Secondary Security
- Directors' personal guarantees
Loan repayments must be met in line with the agreed terms. Failure to meet the agreed payments will incur additional charges and secure assets will be at risk if the loan agreement is breached. It is important to ensure that the company applies for loans that are budgeted and repayments can be easily met from current and future cashflow. Lump sums can be paid at any time to reduce the overall outstanding balance.
If the terms of the loan are not met then additional charges will apply and the full outstanding balance will become due and repayable.
Fees
Our fees are based on an assessment of each application. We will need to see the company's trading history and cashflows to ensure that the business has the ability to repay the proposed loan. The application fee is payable on application and is non refundable. The arrangement fee is deducted from the first payment(s) or paid at approval.
Fees to set up the finance are as follows:-
1. $1,800 USD (£1,500) non refundable application fee, paid on application.
2. Between 2.00% - 4.00% arrangement fee paid at completion.
3. Interest rates between 4.9% - 8.5%*
4. 6 months to 72 months term.
5. No penalty for early settlement, other than a small administration fee**
*Indicative rates only. A term sheet will be issued with any approved application showing rate to be applied at the time.
** Typically $200 USD, but capped at a maximum of one month's payment.