What is a secured loan?
This is a lending facility that is offered to a business using the security of a tangible asset. The assets accepted are generally buildings or land owned in the business name. There is normally a valuation required in order to ascertain the true market value of the asset together with a value for lending purposes. The costs of the valuation will be covered by your business. The valuation must be completed by a Surveyor from the funders approved panel.
Once the valuation of the asset has been complete, the lender would look to take a legal charge over the asset before the funds are released.
How much can we borrow?
Anything from £5,000 to £500,000.
What term can I take the loan over?
3 months to 60 months.
How do we repay the loan?
The value of repayments will be agreed at the outset. Once you accept the offer, a contract will be made available for you to sign. A direct debit will then be set up in order for the financier to recover the monthly repayments over the agreed period of time.
What security will be required?
- A legal charge will be taken over the asset prior to the release of funds
- Personal guarantees will be required
What do we need to qualify?
- Business to be trading for a minimum of two years
- Business to be profitable
- No legal notices or insolvency proceedings
- Defaults must be over two years old and not more than £1,000 in value or a reasonable explanation must be provided
- Be a registered business within the UK
- UK homeowner (minimum of one Director)
What will we need to provide?
Firstly the online application will need to be complete. Once this has been done you will need to send the following information to firstname.lastname@example.org
- The last three month’s bank statements
- The last full set of financial accounts
- Balance Sheet and Profit & Loss
- Draft accounts (if the full year end accounts are over 12 months old)
- Evidence of the current VAT & PAYE position
- All directors to complete an asset and liability statement (click to open and save form)
- Please note that some lenders may request projections. We will advise if these are required.
- Your application will not be processed until we have received all of the requested information listed above.