Borrower Terms and Conditions.
- By approaching us to borrow money you agree to these Terms and Conditions.
- This document should be read in conjunction with our other documents which set out the basis of our dealings with each other.
- Whether you are acting on your own behalf or on behalf of a partnership, Limited Liability Partnership (LLP) or a limited company, by using the services provided by us then you confirm that you have read and understood these term and conditions (or subsequently updated versions). In addition, if you are acting for a partnership, LLP or limited company, you confirm you are authorised to act on their behalf.
- If, after reading these Terms and Conditions, you feel are not able to act upon them, or be bound by them, then you should not proceed to access our services.
- References to “we”, “us” and “our” are to Focus2020 Limited.
- References to the Security Trustee is to Focus2020 Limited.
- References to the “Borrower” “you” and “your” relate to you as an individual or any body whom you are acting on behalf of a partnership, an LLP or Limited Company.
- References to Lender(s) are to a potential Lenders using our services from time to time.
- References to Loan Agreement and Security Documents are to individual documents entered into during the process of lending.
- Whilst this document sets out the basis of our relationship the Loan Agreement will cover more specific terms in relation to any the loan approved. In cases of any conflict between these terms and conditions and the Loan Agreement, the Loan Agreement will prevail.
- Where an application for a loan has been made on your behalf by a Broker or other financial intermediary then we will assume that they have done so with your full authority.
2. Borrower Acceptance Terms
- To become a Borrower with us the following criteria must be met:
- You must be a recognised business either trading as a sole trader, partnership, LLP, or limited company, Trust, Charity, Public Body or a UK resident over the age of 18.
- In the case of LLPs and Limited Companies all Companies House returns must be up to date and Accounts filed within the stated deadlines.
- Your business must have its main operation based in the UK (excluding the Channel Islands and Isle of Man).
- Owners and directors must be UK citizens and residing in the UK; in the case of partnerships, LLPs and limited companies at least 50% of the partners or directors must be permanent residents in the UK (excluding the Channel Islands and Isle of Man).
- Searches with credit reference agencies will be undertaken to verify the identity of all Borrowers and connected parties. In some instances we may require copies of passports or other relevant documents.
- You must have and maintain an account with a UK bank or building society.
- All connected people with the business and the business as a separate entity must be deemed creditworthy as determined by the Credit Assessment Process which will be undertaken together with any information obtained via credit searches with a number of credit reference agencies.
- Applications to become a Borrower will not be accepted if there are outstanding County Court Judgements (CCJ).
- In applying to be a borrower you agree that the details you provide in your application will be reviewed by our Lenders.
- During the application process you warrant that:
- all the information you provide is true and accurate;
- you are not aware of any circumstances or proceedings which could result in you being unable to fulfil your financial commitments; and
- you will inform us of any future circumstances or proceedings which could result in you being unable to fulfil your financial commitments.
3. User Access Security
- Upon acceptance as a Borrower, as well as providing an email address, physical mailing address and contact telephone numbers, you may be requested to provide answers to additional questions in order to assist in identifying you.
- If you authorise another person to act on your behalf (such as a broker or advisor) you will be responsible for their discussions and actions with us.
- We maintain the right not to deal with anyone whom we believe is not acting with your authority or under circumstances where we suspect potentially illegal or fraudulent activities.
- You must immediately notify us if you discover or suspect that your identity has been compromised. In this situation, before further actions or decisions can be take, we will take steps to re-verify your identity.
4. Application, Review and Acceptance Process
- If you wish to apply for a loan you are required to complete a loan application form which includes all the key data and information about you and your business and project. You will also be expected to present your credit report from a credit reference agency together with details of any security offered (for example property, assets or a personal guarantee).
- You are responsible for ensuring that all information provided by you is accurate and does not mislead Lenders.
- Your application will be reviewed by us. If your application is acceptable, you will first be contacted for a telephone and then if appropriate to arrange a suitable date and time for a meeting with us. At this point an application fee, which is non-refundable, will be payable.
- During the meeting you will be requested to present your loan application which may include providing further information. Following the meeting you may be requested to provide additional information.
- Based on the meeting and the information provided your application will either be accepted or declined.
- If your application is declined we will inform you in writing, outlining the reasons why your application could not proceed.
- If the application is accepted:
- A Credit Risk Score Band (CRSB) will be assigned to the application based on the information the Borrower has provided and will be used to calculate the rate of interest applicable to the loan. CRSB is calculated by taking into account a wide range of factors about the business, its financial performance and the perceived risk of the application. The CRSB is for Simple Backing’s internal use only and Lenders will take their own view on the perceived level of risk of lending to you.
- The Borrower will be asked to provide an interest rate that is acceptable to them.
- The Borrower will provide details of the security to be offered to the Lenders for consideration.
- Upon acceptance of the interest rate and security requested the application may be submitted to our credit assessment team for an independent review. At this stage your request may be accepted or declined.
- If the application is declined we will inform you in writing outlining the reasons why the application could not proceed.
- If the application is successful it will be forwarded to our Lenders for review together with the security offered.
- Lenders will review the Borrower’s application and make a pledge towards the amount of the application.
- All loan offers must be fully pledged; partially funded loans will not be drawn down.
- Once the application loan amount is fully funded the Loan Agreement is issued, signed and returned by the Borrower. The Borrower will be required to return the accepted Loan Agreement within [14 days] otherwise the Lenders are not obliged to honour their agreement to lend.
- The Borrower acknowledges that a loan application does not obligate us to ultimately secure the loan application amount. The final decision to support a loan application will be the Lenders’.
5. Security and Loan Draw Down
- Upon receipt of the Loan Agreement the Borrower undertakes to execute all the required Security Documents.
- The Borrower agrees to indemnify and be responsible for costs in respect of taking the security.
- The Borrower undertakes to execute the documents as quickly as possible in the presence of a Solicitor and to co-operate with the Solicitors to ensure a speedy drawdown of the loan for all parties.
- Any guarantors will also be required to take independent legal advice to confirm they fully understand the liability they are entering in to and that they have not been subject to undue influence in signing the guarantee document.
- Once all documentation is in place and confirmed to be in order, and the Arrangement Fee paid the loan will be drawdown and the amount, net of the legal fees and any other fees, will be submitted to the Borrower’s bank account, which must be the same account as that quoted in the Loan Application.
6. Application Fee, Arrangement Fee and Other Fees
- An application fee upon application and an arrangement fee is payable and drawdown of the Loan.
- All fees will be provided to you as part of the on-boarding process.
- Borrowers are also liable for any Solicitors fees and estimated costs will be advised at application stage.
- Other fees may also be payable and will be agreed in advance.
7. Interest Rates
- Interest rates are fixed at the outset and for the term of the loan.
- The interest rate is advised by the borrower. Simple Backing will also calculate a CRSB rate based upon the Credit Risk Score Band (CRSB) which is an internal assessment of the Borrower’s perceived level of risk. Each CRSB reflects the appropriate level of risk/reward Lenders are being asked to take.
- The four CRSBs are:
- A – Low Risk;
- B – Mild Risk;
- C – Moderate Risk;
- D – High Risk.
- Band A carries the lowest interest rate with Band D carrying the highest interest rate.
- Interest rates may change from time to time and current rates are listed on the website.
8. Repayment Schedule
- The agreed repayment schedule is outlined in the Loan Agreement.
- Payments will be collected by us on behalf of the Lenders.
- Payments are expected to be made on time and it is up to Borrowers to ensure that funds are made available in their bank account prior to the due date of payment.
- If for some reason payment cannot be met then the Borrower must contact us to advise of the position and inform is of when payment will be made.
- Loans can be paid off early in one lump sum (no partial repayments) and will be subject to a 1% early repayment fee.
- A missed payment fee of £25 will be levied and a further £25 on each attempt to collect payment or contact the Borrower.
- If two or more payments are in arrears then, unless a compelling reason is provided, a default notice will be served and the matter will be handed to an external debt collections agency. A charge of £100 will be levied on you by us upon this action being taken and the debt collection agency will charge other fees to cover their costs.
- In the case of default a notice will be placed on the Borrower’s credit file.
- If the missed payments have not been collected by the debt collection agency, or two payments remain outstanding, or other terms of the Loan Agreement are breached, we will then reserve the right to commence proceedings to enforce the security as detailed in the Loan Agreement.
- In some instances we may need to protect the position of the Lender by terminating the Loan Agreement where only partial payments or one payment is outstanding, or where the Borrower or any Guarantor is likely to enter into insolvency.
- Borrowers agree to indemnify the Lenders and the Security Trustee and will be responsible for payment of all costs of recovering payments owed to Lenders.
- If you have a complaint about any aspect of our service and you wish to contact us you can obtain a copy of our Complaints Policy
10. Other Terms
- Information made available either directly or via the website is not a formal offer. If you are in any doubt as to the suitability of our services then we recommend you seek independent advice.
- We accept no responsibility for any actions you may or may not take in respect of the content on our website or information you may obtain from us.
- When supplying or uploading information to us you undertake that you have taken all necessary precautions to ensure the files are virus free.
- We take all reasonable precautions to protect our systems and computers from viruses but if they do occur we accept no liability for them; it is your responsibility to install suitable anti-virus programmes on your computer.
- Our website may contain links to third party websites and whilst we take precautions to ensure we only link with reputable sites we accept no responsibility or liability for any material contained in or through our website.
- You acknowledge and agree that we do not provide financial, accounting or legal advice in respect of the services we supply. If you have any questions about the services you should seek independent advice.
- You acknowledge that we are not primary lenders; our service is to assess suitable borrowing applications on behalf of Lenders and forward them to our panel of Lenders who take the ultimate decision to lend.
- We own all present and future copyright, trademarks and designs rights (registered and unregistered) and all relevant intellectual property rights.
- Any breach of these Terms and Conditions, or Loan Agreement or fraud will result in your being liable to us for any subsequent loss or damage.
- We will not be liable to you for any loss or damage you may suffer by using our services except where the losses or damages have arisen from our breach of these Terms and Conditions. We will not be held responsible where any breach by us was as a result of events or circumstances outside of our control. Our liability will be limited to the amount of the loan or £2,500 whichever is the lower.
- From time to time we may amend or vary these Terms and Conditions and you agree to be bound by these Terms and Conditions as subsequently amended and updated.
- If any part of these Terms and Conditions is found to be illegal, invalid or unenforceable by any court or regulatory authority, the remainder shall continue in full force and effect. No single or partial exercise, or failure or delay in exercising any right, power or remedy by either you or us shall constitute a waiver by us or preclude any further exercise of that, or any right, power or remedy arising under this Terms and Conditions.
- All disclaimers, indemnities and exclusions shall remain in force after the end of any agreement between us.
- These Terms and Conditions are governed by English and Welsh law and the courts of England and Wales will have non-exclusive jurisdiction to settle any disputes that may arise in relation to this Terms