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.
- Company tangible assets
- Company stock
- Company income
- Company shares
- 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.
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 administration or arrangement fee will be based on how straightforward the loan qualification process is and the amount of additional information and checks required. Arrangement fees typically range from 1.25% to 5.00%.