Key Terms and Conditions
- Interest is agreed on a case by case basis reflecting the level of risk (between 5% and 9% above base rate)
- Businesses may borrow between £25,000 and £100,000, with the possibility of an additional £100,000 after a period of 9 months
- Repayment is over 3 to 5 years (a capital repayment holiday can be considered)
- Security, if taken, is subject to risk assessment and in most cases will be subordinate to the security of any other lenders
- Fees:
- arrangement fee 2%
- annual monitoring fee 1%
- legal costs £500 fixed fee (where applicable)
- In place of an equity stake a premium ranging between 0.25% and 1% will be levied on annual turnover, allowing owners to retain their current capital stake. In some instances, an equity stake may be considered as well
- Prepayment costs are calculated as a percentage of the sum repaid plus a termination Turnover Levy
