01
Application received
Prospective customer contacts Nationwide Finance Limited ("NF") applying for a business loan in a Limited company name via the NF website with an online application or over telephone. An email is sent back to them confirming that the agreements we offer are corporate loan agreements, all agreements are additionally secured by personal guarantees and legal charges on residential or other property owned by the guarantors, and that the finance is available for business use only, and that we do not offer regulated consumer agreements of any type. Unsecured options are available to listed companies, FTSE 250 companies, charities, non-profits, CICs and other associations. The email also lists the various fees and charges which may become payable under the agreement.
02
Account manager call
NF account manager contacts the customer and explains the key features of our agreements to check they are suitable for the client. They explain again that we require Personal guarantees and legal charges, and that our agreements are business loans and we only deal with companies, not consumers. The Account Manager requests and gathers further information from customer including financial information. Account Manager asks numerous questions to understand the client's business and explains the key features of the proposed transaction including the agreement, drawing the customer's attention to the charges and fees involved and checks the suitability against the client's needs.
03
Underwriting decision
Account manager submits all information to the underwriting department for a decision to either approve or decline the company's loan application or to request further information. After affordability checks and underwriting checks, which include making sure the agreement and the transaction overall is suitable for the client, underwriting either gives the Account Manager an approval, a decline or requests a guarantor to support the application. If approved the account manager will email you details of the company loan offer along with copy documents for your review.
04
Guarantor & legal charge
If a guarantor and/or legal charge over a property(ies) is/are required, the Account Manager will email the customer asking for details of the person(s) prepared to give a personal guarantee and/or legal charge over their property and who must confirm they will be a Director or other officer or involved in the company. The Account Manager will contact the guarantor/chargee to explain the requirement, explain the key features and gather their information and will tell them, among other things, that if the customer defaults the guarantor would be liable for the full debt and any property subject to a legal charge may be repossessed.
05
Documents posted for review
All documents required to be signed including the agreement, quote, offer, guarantee and legal charge are posted to every signatory(ies) home address for their consideration and we recommend in writing they take independent legal advice. We confirm again in writing that their home may be repossessed if the customer does not pay the debt secured on it. An email is also sent to the customer and all guarantors with a second copy of all documents including the quote with all amounts payable, guarantee, legal charge and the settlement calculations. Again NF recommend in writing they take independent legal advice before signing. In addition, attached to the email are the key features and suitability document and a transcript of the Manager's call with the customer.
06
Appointment confirmation
An appointment email is sent by the Account Manager to all of the signatories and they are all required to email back to NF to confirm they have received the previous email and documents specified previously, and that they would like to proceed with the agreement and any guarantee and legal charge(s) over property required and in each case they understand the terms offered, risks involved and fees or other charges payable and that any loan can only be granted in the name of a limited company.
07
Key features approval call
A Key Features Information Approval Script is read in a further telephone call made by the Account Manager to each of the signatories confirming the secured-on property finance conditions, the key facts, charges and fees, risk of repossession, key features and quote and offer (a record of this call is made and the transcript is again emailed to all signatories).
08
Signing appointment
NF representative attends the pre-arranged appointment at the customer premises and presents to the customer and individuals giving any guarantee or legal charge all documents for signing along with a company brochure. In the appointment the signatories consider the documents for a 3rd time and either proceed to sign them or they post them back to NF as and when they are ready to proceed. The representative leaves an electronic copy with a third copy of the documents with the customer and each guarantor.
09
Signatory confirmations
During the appointment, all signatories confirm in their own handwriting that the representative read aloud the "IMPORTANT INFORMATION PROVIDED BY THE REPRESENTATIVE TO GUARANTORS" script. The representative acted without rushing and did not apply undue pressure or influence. Signatories confirm they received copies of all documents during the appointment and a further copy before the day of the appointment, allowing sufficient time to review them. No promises or representations were made that differ from or materially alter the documents being signed. Independent legal advice was recommended, and obligations under the Loan Agreement, Guarantee, and any Legal Charge are understood. All fees, repayment obligations, and Direct Debit requirements, including fees for unpaid or dishonoured payments, are understood. Signatories rate the representative's explanation of the documents from 1-10, with 10 being exceptional, in their own handwriting. Once signed and countersigned, no statutory or contractual cooling-off period applies; the loan is fully activated and funds are automatically securitised externally. Affordability checks have been completed, and settlement calculations, including discounts, are understood. All parties sign in their own handwriting to confirm that the representative's information has been accurately provided.
10
Compliance recorded call
Before your loan can be activated, each signatory and guarantor receives a Compliance Recorded Call. This ensures everyone fully understands the loan agreement and their obligations. During the call, we check that you have received all documents in advance and had time to review them. We confirm that you understand the loan, personal guarantees, legal charges, key features, fees, and charges. We check that you signed the documents freely, without pressure. We confirm that repayments are affordable. We explain that any example after-tax rates are illustrative only and not an official interest rate. We ensure you understand the settlement calculation, including any applicable discounts. We confirm that you acknowledge any personal benefit you may receive from the loan. We check that you were advised to take legal advice and confirm if you chose not to. We confirm that you understand Direct Debit payments and any fees for missed payments.
11
Activation & drawdown
At the end of the call, each signatory is asked, "Have I spoken slowly enough, and would you like to activate the loan agreement, or would you like more time to think about it?" If you choose to activate the loan, the signed documents are returned to Nationwide Finance by you, your solicitor, or your representative. The loan agreement is countersigned by Nationwide Finance and assigned a unique agreement number. Legal charges are uploaded online to be registered against the secured properties. Funds are drawn externally into a suspense account while the legal charges are being registered. Once signed and countersigned, no cooling-off period or right to cancel applies. The loan is fully activated and automatically securitised externally. Funds may not yet have been received, and legal charges may not yet appear on the Land Registry, but this does not affect activation or cancellation rights. Once the legal charges appear on the Land Registry, the loan funds are automatically released to your company account.
12
Welcome pack delivered
Once the loan is activated, Nationwide Finance emails a welcome pack to all signatories, including all signed documents, representing the fourth set of documents received. A repayment schedule is also sent to the company, showing all future scheduled payments for the duration of the loan. Outcome: Happy customer, happy funder.