Do you offer business loans?
No, we do NOT offer business loans. We offer secured unregulated asset refinance and asset finance agreements. The agreement needs to be supported by personal guarantees and legal charges against personal property of any guarantor or other individual willing to support your business by providing security.
Can I settle my agreement early? Are there any penalties?
Yes, you can settle the agreement early and there are no additional penalties for doing so, however, you will pay exactly the same amount if you settle the agreement early or if you let the agreement run full term. The settlement calculation is simply, all the contractual payments that would have fallen due are added together along with any notice period with no discount and this will form the settlement figure. We suggest to clients that are considering to settle early to use your surplus funds within the business or put into an investment / high interest account, as settling the agreement early has no saving and no benefit due to the settlement procedure that follows a strict funding covenant. .
If I refinance my equipment what are the potential fees and charges?
Yes, you would sell your goods to the Funder and you would receive the proceeds (funds) into your business account. Your business would then hire back the goods for a primary period at a fixed monthly amount whilst keeping use of the goods. The proceeds you receive will include vat and your monthly payments would also be subject to vat that you would reclaim in the usual way if you are vat registered.
The potential fees and charges depending on product can be some of the following:
An intermediary Fee, Documentation Fee, Arrears fees if you go into arrears, various Collection and Default fees if you default on your payments (please see you agreement), A Risk fee if you do not prove you have insurance, an Bi-annual maintenance fee, Secondary rentals, a Security fee. We suggest you read and understand all the terms and conditions of any offer or agreement before you proceed, if there is anything you do not understand you should seek the advise of a solicitor before entering into any agreement, guarantee or legal charge.
What security will you require for the finance?
You will be required to give personal and/or corporate guarantee(s) to support the Agreement with your company and you maybe asked to provide a guarantor to guarantee your businesses liabilities, in addition, dependent on agreement and amount borrowed and the credit status the lender will require a unilateral notice or Legal Charge or over your personal residential property and/or business property and/or any guarantor’s personal residence or business property. A fixed and floating charge over the assets of your company or any corporate guarantor (a “debenture”) will also be required. You will be charge a security fee of 10% to remove the security once the agreement is finished.
Will there be VAT on the refinance amount I receive?
Yes, on a sale and lease back, any money you receive from us will be an inclusive of VAT amount and therefore will give you a VAT liability at the standard rate on the sale of your goods to us. You will claim back the VAT element on the monthly repayments.
Will there be VAT on my monthly payments?
Yes, on a finance lease agreement all monthly payments will carry Vat at the standard rate. This is fully reclaimable in the normal way providing your business is VAT registered. On a Hire Purchase agreement the VAT is payable up front meaning there is no VAT on the monthly payment.
How long can the finance be over?
From 6 months to 5 years.
How long does it take to get approved?
Our process is extremely quick and in most cases funding can be agreed within 2 hours, meaning you do not have to wait long periods of time wait for a decision.
Does my business qualify for business finance?
If you are a Start Up Business please see our Start UP page. To be eligible for our business finance agreements your business needs to be registered as limited company or you will need to incorporate for us to consider your business for funding.
What information do I need to give to get approved?
In some instances the information we require can be obtained through the credit searches we do or via companies house if you are a Ltd Company, in other cases three months up to date business bank statements, a personal statement of new worth for each person involved is required and general information about the business.
What rates do you charge on your finance / hire agreements?
On a finance lease/Hire there is not an APR as it is a hire agreement. However if you add up all the payments that you are making including any fees due, this will tell you how much you are paying back. On a Hire Purchase agreement flat rates can start from as little as 5%.
What sort of equipment can I finance?
Any equipment, machinery, vehicles or even shop fitting & building works. We can also include delivery and installation as part of the finance package.
What terms can I lease my equipment over?
Agreements run from 12 months to 5 years, making this is very flexible option rather than an outright purchase.