Short-form loan agreement
There is a variety of different lenders; some provide a wide range of loans whilst others specialise on a particular type of finance.
This section will help you narrow down your search by looking at the following broad categories of lender which are most likely to be relevant to your business:
Family and friends
Borrowing from a family member or friend is likely to be significantly less formal and structured than from other types of lender. However, if you borrow from one you will still be in a business relationship with them and may need to look elsewhere for further funding.
See Q&A 2 and following for the implications for your business of borrowing from a family member or friend.
Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.
Barclays, HSBC, Lloyds, RBS and Santander are commonly referred to as the 'Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.' or the 'big 5 banks'. They will require specific conditions to be met and, other than for very small loans, are unlikely to be suitable lenders for most early stage businesses. However they have a wide range of products and are likely to have extensive experience of your business sector.
See Q&A 5 and following for guidance on what it will mean for your business if you approach a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks..
Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs.
These are a diverse group of lenders, from traditional banks to digital-only lenders, who offer loans traditionally provided by the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.. Most of the Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. will offer a narrower choice of loan than the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.. However some may be able offer your business a more focused Small or Medium-sized Enterprise: A business which is small or medium sized in terms of its staff numbers, turnover or assets. service and a more innovative technology platform.
See Q&A 9 and following to help you decide whether a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. might be a suitable lender to your business.
Peer-to-peer lenders and Persons who invest in companies'shares or lend money to companies via a crowdfund platform. There are three forms of funding enabled by a crowdfund platform: (1) where each crowdfunder becomes a direct shareholder in or lender to the company concerned; (2) where one crowdfunder leads the fund-raising, carries out due diligence and negotiates terms, and the other crowdfunders follow; (3) where the crowdfunders hold their shares or loans via a nominee company which is operated by the crowdfund platform.
Borrowing through a peer-to-peer or crowdfund lending platform is an alternative to more traditional lending. It tends to involve borrowing from a large group of individuals through an on-line platform.
You will have to meet the platform's conditions, the process will be solely on-line and information on your business will be available to a large number of potential lenders. The benefits include a relatively short process compared with banks and the opportunity to pay a lower interest rate if there is a lot of interest from individual lenders.
See Q&A 13 and following for guidance on whether borrowing through a peer-to-peer or crowdfund lending platform may be suitable for your business.
Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage.
Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. also offer an alternative to borrowing from banks. The A UK Government-owned business development bank set up to make finance markets work better for SMEs. has invested in a number of Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. which are focused on lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets., in order to increase the choice of loans for smaller businesses. To meet a debt fund's criteria for lending, your business will not be a start up or early stage. You may however find a debt fund to be quicker and more flexible than a traditional bank.
See Q&A 17 and following to help you decide whether to approach a debt fund for a loan to your business.
There are potentially significant advantages and disadvantages for you if your business borrows from family or friends.
On the plus side, your negotiations could be a lot less structured and onerous than with a professional lender, meaning that less time is spent on the process and you should be able to agree more advantageous terms for your business.
On the negative side, you will still be in a business and legal relationship and will need to deal with the personal repercussions if there are difficulties with the loan. For this reason you should consider applying as professional approach as you can to the loan (see Q&A 4 on process).
This will depend on your relationship with the family member or friend and what protection they want against the possibility of your business not being able to repay the loan.
A family member or friend might be looking for some or all of the following:
details from you of the purpose of the loan;
a business plan (see Preparing a business to raise money for information on putting together a business plan);
financial and legal information on your business;
an agreement to record the terms on which the loan is made, to include:
when the loan must be repaid;
the rate of interest on the loan until repayment;
additional interest if any payment is not made on time:
what information is to be provided on the business whilst the loan is outstanding;
what matters require the lender's consent (such as further fund-raising or selling Shares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. in your A private company limited by shares incorporated and registered in England and Wales. ); and
Events defined in a contract which constitute defaults or breaches of the contract and give the non-defaulting party the right to terminate. Often used in an agreement where a company borrows money from a lender, the occurrence of an event of default will entitle the lender to require immediate repayment in full of the loan. when the loan must be paid back early; and
depending on negotiation, Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. in case the loan is not paid back in full.
You should bear in mind that it is as much in your business's interests as those of your family member or friend that the terms of the loan are properly documented, to avoid uncertainty and reduce disagreement after the loan has been made.
It is likely that your business will be looking for a relationship with an external lender at some stage. You should think about this if the family member or friend asks for Promises to do or not do something, commonly contained in a contract. from you, such as not without their consent to borrow further or grant Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. . Such Promises to do or not do something, commonly contained in a contract. could impede the future funding of your business.
There is no typical process for a family member or friend to lend to your business, unlike most other categories of lender. Much will depend on how formal they and you want the process to be, although it is as much in your business's interests as theirs that the terms of the loan are clear.
If you are looking for a loan, one obvious option for your business is to approach the so-called Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.. These banks are Barclays, HSBC, Lloyds, RBS and Santander and are also referred to in the United Kingdom of Great Britain and Northern Ireland as the 'big 5 banks'. They provide most of the loans to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets. in the United Kingdom of Great Britain and Northern Ireland despite the increasing number of other banks and lenders.
If you want to borrow from any of the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks., they will each have specific requirements (see Q&A 7) and a set process to follow (see Q&A 8) and will not have much flexibility in departing from these.
If your business is eligible (see Q&A 6), what the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks. will be able to offer you are:
extensive experience of lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets.;
in all likelihood, a lot of experience in the sector in which your business operates and specialists who could be very helpful to your business in terms of know-how and contacts;
if they want to lend to you, they will be keen to grow with your business and expand the range of products you take from them;
the widest range of products of any United Kingdom of Great Britain and Northern Ireland lenders; and
deep pockets with an ability to increase funding to your business in the future.
A One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. is unlikely to lend to your business if any of the following applies to you:
you are unable to prove that your business will be able to generate enough income to meet interest payments and enough cash to repay the loan when due;
your business operates in a sector which is facing difficult market or regulatory conditions;
your business is a start up or early stage (other than possibly for small loans); or
neither your business nor any of your business's owners has adequate Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. to offer for repayment of the loan.
If you think your business could be eligible for a loan from a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. and want to work out how to choose between them, you could consider:
looking at their websites for the type of loan you are thinking about;
calling them or arranging a meeting;
asking your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company. and The directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. and your friends and contacts for their experiences and recommendations; and
speaking to a professional adviser who specialises in advising on borrowing.
If you apply to a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. for a loan to your business, the bank's requirements will depend on:
how much you want to borrow;
what type of loan you are looking for; and
whether your business is a start-up, early stage or established.
As a minimum requirement for any loan to your business, you can expect a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. to ask you for:
details of your business plus:
if you're looking for a small loan, which for some banks is up to £25,000, either a A document prepared by management, often in conjunction with advisers, which gives a full commercial and financial picture of their business and is an essential part of the process of approaching investors for finance. In addition to a full description of the business and the opportunities, a business plan should cover amongst other areas the relevant market and competition, management team, back office operations, ownership and financial projections. An investor in a business will typically ask for management to stand behind the business plan, and then regularly update it, as a condition to investing.and forecast (if your business is a start up) or proof of your assets and debts plus A private company limited by shares incorporated and registered in England and Wales. accounts (if your business is up and running); or
for other loans, all of these;
personal information and credit reference checks on your business's owners and management, plus credit checks on the business; and
for loans other than smaller loans:
how much the owners have invested in the business;
the owners' other business interests; and
assets which are available as Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. .
If the loan application for your business is approved, you and the bank will then move on to the process of agreeing terms and signing the loan agreements. Agreeing terms for a loan will guide you through the key terms you can expect to come across which will include:
when the loan must be repaid and whether you can repay earlier without any additional fee;
the interest rate, how it is calculated and when it might change;
what fees you will need to pay the bank for arranging the loan;
when the bank can require early repayment; and
what form of Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. the bank requires and from whom.
If you want to borrow from a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks.:
your first step is to submit an application for a business loan in the form prescribed by the bank. You will find the details on the bank's website of what information needs to be included with your application; see Q&A 7 for what typically they will be looking for. For information such as cash flow Projections produced by the management of a business as to the future financial performance of the business, often contained in a business plan and regularly updated., some banks provide templates as well as a checklist;
the next step is for the bank to carry out credit references and credit scoring to assess your application. Bank websites explain how credit reference agencies work and how you might improve your business's credit rating;
the bank will then notify you of its decision and you will have a right to appeal against a refusal if your business meets the bank's qualifying criteria;
if the loan application for your business is approved, you and the bank will then move on to the process of agreeing terms and signing the loan agreement:
typically, the bank will first produce a In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding. setting out the key terms of the loan;
once this has been agreed and signed, the bank or its lawyers will produce the detailed agreements which reflect the In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding..
You and your advisers should review and negotiate both the In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding. and loan agreement before signing. For access to a specialist lawyer who can advise on such negotiations, you can use our Ask a Lawyer service.
All five Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks. have signed up to standards for lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets. which they should comply with if you approach them for a loan. See Q&A 24 for more information on this.
If you are looking for an alternative to a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks., you could think about approaching a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. which is focused on lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets.. Which particular banks to approach will depend on what type of loan you are looking for (see Choosing a loan for guidance on the different types of loan).
Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. cover a diverse group of lenders to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets., from:
mid-sized full service banks; to
specialist banks such as those who focus on Lending to a business which is secured on the business's existing assets. As well as debts, assets over which security could be taken include equipment, real estate, stock and brands. Unlike invoice finance, which involves a lender buying a business's debts, asset-based lending involves taking security over the debts or other assets. ; to
digital-only banks with innovative technology platforms.
See Q&A 10 for how to find a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. which is suitable for your business.
The benefits to your business of approaching a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. include:
they offer an alternative to the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks., who have historically dominated Small or Medium-sized Enterprise: A business which is small or medium sized in terms of its staff numbers, turnover or assets. lending;
they could offer a service more focused on your type of business;
they may have more modern and user-friendly technology than the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks.;
they may be keen to build up their book of business and, if so, might offer your business more speed and flexibility than a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks.; and
some Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. will be more open to lending to your business if you are a start up or early stage.
If your business has an existing relationship with a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. and you want to explore other lenders, In 2016, The UK Competition and Markets Authority (CMA) published a report on the UK’s retail banking market which found that older, larger banks do not have to compete hard enough for customers’ business, and smaller and newer banks find it difficult to grow and access the market. To tackle this, they proposed a number of remedies including Open Banking, which has enabled customers and small to medium-sized businesses to share their current account information securely with other third party providers since January 2018. may help you. This was recently introduced by the United Kingdom of Great Britain and Northern Ireland Also known as the CMA, it is responsible for investigating and enforcing UK competition law and refers to itself as a non-ministerial independent government department. to give other lenders access to your account and help businesses switch borrowers more easily.
Where a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. may have advantages over Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. is in:
the range of products and the funds available to lend;
the extensive experience of lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets.; and
its know-how in your particular sector and its size, meaning there will be few businesses and circumstances it will not have come across.
Having decided you wish to explore lenders other than the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks., which Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. you approach will depend on:
the type of loan you are looking for;
how much you want to borrow; and
the stage of development and profitability of your business.
These factors will narrow down the number of banks you can choose from.
You could go on to websites such as the Better Business Finance, input information on your business and the finance you are looking for, and see which lenders are suggested. This site was set up to improve access to finance for Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets. such as yours and is managed by United Kingdom of Great Britain and Northern Ireland Finance, which represents nearly 300 lenders.
You could also ask your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company., The directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. and advisers and your friends and contacts for personal recommendations.
If you apply to a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. for a loan to your business, the bank's requirements will depend on:
how much you want to borrow;
what type of loan you are looking for;
what their particular approach is; and
whether your business is a start-up, early stage or established.
You will find that some Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. will be similar to the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks. in their requirements, especially those which are structured like a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks..
Other Institutions other than high street banks which provide finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. may pride themselves as being quicker and more flexible because they are smaller or have more up to date technology than the traditional banks.
As a minimum, for any loan to your business you can expect a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. to ask you for:
how much you want to borrow, for how long and for what purpose;
details of your business and, depending on the size of the loan, a A document prepared by management, often in conjunction with advisers, which gives a full commercial and financial picture of their business and is an essential part of the process of approaching investors for finance. In addition to a full description of the business and the opportunities, a business plan should cover amongst other areas the relevant market and competition, management team, back office operations, ownership and financial projections. An investor in a business will typically ask for management to stand behind the business plan, and then regularly update it, as a condition to investing.and forecast; and
personal information and credit reference checks on your business's owners and management, plus credit checks on the business.
A An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. may also want to know:
how much your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company. have invested in the business;
the In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company.' other business interests; and
which assets of your business and your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company. are available as Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. .
If you are looking to borrow from a An institution other than a high street bank which provides finance to businesses, sometimes in competition with the high street banks and sometimes operating in different markets from them. Often this type of lender will focus on specific markets, one of which is making finance available to SMEs. :
your first step is to submit an application for a business loan in the form prescribed by the bank. You should find details on the bank's website of what information needs to be included with your application;
the next step is for the bank to carry out credit references and credit scoring to assess your application;
if the loan application for your business is approved, you and the bank will then move on to the process of agreeing terms and signing the loan agreements:
typically, the bank will first produce a In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding. setting out the key terms of the loan;
once this has been agreed and signed, the bank or its lawyers will produce the detailed agreements which reflect the In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding..
Agreeing terms for a loan will guide you through some of the key terms you can expect to find, depending on the type of loan, including:
when the loan must be repaid and whether you can repay earlier without any additional fee;
the interest rate, how it is calculated and when it might change;
what fees you will need to pay the bank for arranging the loan;
when the bank can require early repayment; and
what form of Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. the bank requires and from whom.
You and your advisers should review and negotiate the In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding. and loan agreements before signing.
Peer-to-peer or crowdfund lending is an alternative to traditional forms of lending. It is online, technology-driven and allows multiple individuals to lend to your business. If your business has a good credit rating, a loan through a peer-to-peer or crowdfund lending platform could enable you to borrow at a competitive rate of interest.
A peer-to-peer or crowdfund lending platform will match your business with a large number of potential borrowers who are looking to receive a better return than from bank deposits.
Peer-to-peer and crowdfund lending platforms market themselves as:
a direct alternative to borrowing from a bank;
lending which can be arranged more quickly than traditional lending because of their technology platforms;
allowing small investors to participate directly in businesses' returns by making loans to a number of different businesses;
able to facilitate loans from thousands of pounds to millions of pounds; and
giving borrowers with a good credit record the opportunity to pay a lower interest rate than from more traditional lenders.
To help you identify a peer-to-peer or crowdfund lending platform which may be suitable for your business, think about the following:
ask your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company., The directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. and advisers and your friends and contacts for personal recommendations; and
check the websites of platform associations such as the UK Crowdfunding Association and look up the platform member firms.
You need to bear in mind peer-to-peer and crowdfund lenders will each have their own terms as to interest, repayment and fees, and will not all be suitable for your business:
some require a trading history of a minimum number of years;
others require minimum The amount of money taken by a business, before deductions (eg expenses, tax etc). and profitability;
some require the loan to be secured and to rank ahead of other debt.
A peer-to-peer or crowdfund lending platform will require the following from you in return for arranging a loan to your business:
Meeting its eligibility criteria
These will differ depending on the platform. Some require a minimum trading history and some a minimum level of profitability.
Fees
You will have to pay fees to the platform for arranging and administering the loan and in some cases an application fee, an auction fee and a superior listing fee (which could for example allow you to post a video link onto the platform).
Terms and conditions
You will need to sign up to the platform's terms and conditions, which should be available on its website. See Q&A 16 for more guidance on these terms, which you should check carefully before starting any process.
Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee.
Your business may be required to give Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. for the loan.
Depending on the creditworthiness and trading history of your business, your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company. may also be required to give personal (1) In the context of debt, contracts under which one person agrees to pay the debtor's debts if the debtor cannot pay themselves. (2) In the context of sale of goods, promises to a customer which are given freely (without charging extra money) that the goods they are buying will meet certain standards, and if they do not the person making the promise will do something to make up for that (eg give a refund, or repair or replace the goods). for the loan which are secured on their personal assets.
Each platform will have its own process which you should find on its website. It will include elements of the following:
Terms and conditions
Each platform will have its own terms and conditions which should be available on its website and which you should read carefully before engaging in any process.These are important to you as they will set out the legal terms which will apply to your loan.
You can expect to find on each platform's website the terms of use of the platform.
You will also find the terms and conditions which will apply to you as a borrower such as:
your eligibility for a loan through the platform;
the loan approval process;
the terms of the loan and any Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. required;
dealing with late payments, including enforcing any Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. and appointing a collections A person who acts on behalf of another (eg an employee or a solicitor). ; and
the ability of individual lenders to transfer their loans.
Application
You will need to make an initial application on the platform's website for the platform to assess the eligibility of your business for a loan.
Some platforms say they will give you an instant response as to whether your business qualifies for a loan and then ask you to submit a more detailed loan application online.
Listing on line
The next step after platform approval is to list your loan application on the lending platform and invite potential lenders to participate in the loan.
Some platforms will give your business a risk rating. They will say that the lower the risk, the lower the interest rate is likely to be.
This will be followed by an auction to individual lenders to check if there is interest in lending to your business.
Agreeing terms
Once you have received offers from lenders to lend the amount you have applied to borrow, you then need to decide whether to accept the terms of the loan and if so proceed to signing and draw down the loan.
A debt fund is another potential alternative to borrowing from a bank.
Although historically focused on larger businesses, there are now a number of Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. which focus on lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets.. For a debt fund to be a suitable lender to your business:
your business will not be a start up or early stage;
your business will have to be achieving revenues of at least a specified figure; and
you will need to be looking for a loan of a minimum amount.
In order to assess whether a debt fund is suitable for your business, you should check the debt fund's lending criteria on its website.
If your business meets the lending criteria of a debt fund, you may find that a debt fund will offer you:
a willingness to take more of a credit risk on your business than a bank would do, in return for a higher rate of interest; and
a speedier response to a loan application and more flexibility than traditional lenders.
If you think a debt fund may be a suitable lender, ask your A private company limited by shares incorporated and registered in England and Wales. 's In relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company., The directors of a company are the individuals who make up the company's board of directors. Directors may be natural persons or companies, but each company must have at least one director who is a natural person. The board is the main decision-making body of the company. and advisers and your friends and contacts for personal recommendations on Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. which are focused on Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets..
You should also look into those Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. in which the A UK Government-owned business development bank set up to make finance markets work better for SMEs. is an investor. The A UK Government-owned business development bank set up to make finance markets work better for SMEs. is owned by the United Kingdom of Great Britain and Northern Ireland Government and was set up to help open up the United Kingdom of Great Britain and Northern Ireland finance markets for Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets..
As with most other lenders, Funds which are raised for the specific purpose of providing businesses with an alternative source of loans to banks. Debt funds tend to take more risks and charge higher rates of interest than banks but market themselves as more flexible and quicker to respond to applications. SMEs to whom debt funds lend tend to be reasonably-sized, established businesses although venture debt funds will lend to venture capital-backed companies which may be more early stage. who are prepared to lend to your business will have their own terms which are likely to include:
an arrangement fee calculated as a percentage of the loan, possibly in the region of 1–2%;
a loan term from at least 1 year to 3 to 5 years;
a higher interest rate than for bank loans, the rate for your business (if eligible) reflecting the risk to the debt fund;
Also known as a debenture, charge or mortgage, security over an asset or assets (such as cash, debts, real estate or equipment) is given by a borrower (and sometimes a third party such as a shareholder of the borrower) to a lender in case the borrower fails to make a payment due. Security is also used to refer to a personal guarantee of a borrower's payment obligations to a lender, typically given again by a shareholder and sometimes secured over the shareholder's personal assets. In the event of a borrower's failure to make a payment due to a lender, the lender will have the right to sell any asset secured or call in the guarantee. for repayment of the loan; and
for some funds, options over your A private company limited by shares incorporated and registered in England and Wales. 's Shares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. calculated as a percentage of the amount of the loan.
A typical process would involve:
a meeting with the debt fund so they can understand your business, your A document prepared by management, often in conjunction with advisers, which gives a full commercial and financial picture of their business and is an essential part of the process of approaching investors for finance. In addition to a full description of the business and the opportunities, a business plan should cover amongst other areas the relevant market and competition, management team, back office operations, ownership and financial projections. An investor in a business will typically ask for management to stand behind the business plan, and then regularly update it, as a condition to investing.and discuss loan terms at a high level;
negotiating and signing a In relation to a share investment or loan, a term sheet is signed by the relevant parties at the outset of negotiations and sets out the important points of principle of the investment or loan. The signed term sheet will form the basis of the legal documents. A term sheet is not usually legally binding unless the investor or lender is given exclusivity for a period, in which case this part of the term sheet will be binding. containing outline terms of the loan;
the debt fund carrying out due diligence on your business;
loan documents which will be prepared by the debt fund's lawyers and negotiated with you and your advisers; and
approvals from the debt fund's credit committee at various stages of the process.
Agreeing terms for a loan will guide you through the key terms you can expect to find and negotiate in the loan documents prepared by the debt fund. You and your advisers should review and negotiate the loan documents with the fund and its advisers before proceeding to signing.
You should take care over the accuracy of business information which you give to lenders. Particular care should be taken in how you present financial information, both historic and forecasted.
A lender will probably ask for a representation and A promise or assurance in a contract. that the information you provide in the run up to the loan is accurate (see Agreeing terms for a loan for information on Promises or assurances in a contract.given to lenders).
If any of the information is not accurate, there may be consequences for your business:
your credibility with the potential lender if you have to correct the information before you borrow;
possible liability to the lender for A violation of a legal or moral obligation. of A promise or assurance in a contract. if this comes to light after you borrow; and
a possible An event defined in a contract which constitutes a default or breach of the contract and gives the non-defaulting party the right to terminate. Often used in an agreement where a company borrows money from a lender, the occurrence of an event of default will entitle the lender to require immediate repayment in full of the loan. under the loan agreement if this is discovered after you borrow, which could result in the loan becoming repayable in full before the agreed repayment date (see Agreeing terms for a loan for information on Events defined in a contract which constitute defaults or breaches of the contract and give the non-defaulting party the right to terminate. Often used in an agreement where a company borrows money from a lender, the occurrence of an event of default will entitle the lender to require immediate repayment in full of the loan.).
If your loan application is turned down by a One of Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to collectively as the big five banks. or a small number of other banks, and your business meets the eligibility criteria, the bank is required to offer you a referral to a designated online platform to see if other funding can be made available. See Q&A 23 for guidance here.
If your loan application is turned down by a lender against whom you have a complaint, if you have a small business you may be able to use the The process of resolving a dispute between parties, whether through formal processes such as litigation or arbitration, or more collaborative processes such as mediation. service of the The Financial Ombudsman Service or FOS was set up by the UK Parliament to resolve individual complaints between financial businesses and their customers. FOS can look into problems involving certain loans and if it decides a borrower has been treated unfairly, it has legal powers to put things right.. Otherwise, how you progress your complaint will depend on which lender you are dealing with. See Q&A 24 for more details.
If a lender rejects your application for a loan and is one of the Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks., First Trust Bank, Bank of Ireland, Danske Bank or Clydesdale Bank, the lender must, if your business meets certain criteria and you agree, refer your application to three online finance platforms, Alternative Business Funding, Funding Options and FundingXchange..
On referral, the three online platforms will help match your business with another lender with a view to you being able to obtain finance for your business. On request, a platform must provide details of your application to an interested lender
Your business is eligible to be referred to these platforms if:
you have applied for an A loan, traditionally provided by the high street banks but now increasingly provided by other lenders, often for smaller amounts to meet working capital and short-term needs and often secured. The loan will be repayable by the borrower at any time if required by the lender, will be subject to a credit limit and interest will be payable on the amount from time to time owing to the lender. Additional fees will be payable if the credit limit is exceeded., term loan, A financier provides money to a business by buying the business's outstanding invoices. The amount made available will equal most of the amount owed under the invoices, the balance being made available when the invoices have been paid. Unlike with factoring, the business will keep control over the collection of its invoices., (In finance) A financier, also known as a factor, provides money to a business by buying the business's outstanding invoices. The amount made available by the factor will equal most of the amount owed under the invoices, the balance being made available when the invoices have been paid. Unlike with invoice discounting, the factor will manage the invoices and collect the debts directly from the business's customers., A way in which a business can purchase an asset without having to pay the whole price up front. A finance company will typically buy an asset and then provide it to a business in return for fixed payments of the purchase price plus interest payable in instalments throughout the period of the hire purchase. At the end of the hire-purchase period, provided all payments have been made, the business will obtain ownership of the asset on payment of a final amount. Until then the asset will be secured in favour of the finance company. or A way in which a business can use an asset without having to pay the whole price up front. A leasing company will buy an asset and enter into a finance lease with a business for a set period in return for regular payments over the period of the lease which amount in total to the purchase price of the asset plus interest. facility;
your The amount of money taken by a business, before deductions (eg expenses, tax etc). or, if your business is part of a group, your group The amount of money taken by a business, before deductions (eg expenses, tax etc). is not more than £25 million;
you are applying for a loan of £1,000 or more;
the loan is for a period of 30 days or more;
you are not subject to a A formal, written demand for payment that can be sent to a debtor without going to court and without paying any kind of court fee., legal proceedings or a formal demand for a loan debt owed by you;
the lender offered you a different facility from what you applied for and your reasons for not accepting do not relate to fees or interest; and
you applied for the loan yourself and not through a broker.
If you have a complaint against a lender, your options will depend on the type of lender.
If your business employs less than ten Anybody who works for a business, whether as an employee, casual worker, apprentice, agency worker or freelancer. and has a The amount of money taken by a business, before deductions (eg expenses, tax etc). or annual balance which is not more than two million euros, you can use the The process of resolving a dispute between parties, whether through formal processes such as litigation or arbitration, or more collaborative processes such as mediation. service of the The Financial Ombudsman Service or FOS was set up by the UK Parliament to resolve individual complaints between financial businesses and their customers. FOS can look into problems involving certain loans and if it decides a borrower has been treated unfairly, it has legal powers to put things right..
If your business is larger than this, your options will depend on the type of lender you are dealing with:
Banks
All five Barclays Bank plc, HSBC Holdings plc, Lloyds Banking Group plc, The Royal Bank of Scotland Group plc and Santander UK plc. Sometimes also referred to as the big five banks. and some other banks have signed up to standards in lending to Small and Medium-sized Enterprises: Businesses which are small or medium sized in terms of their staff numbers, turnover or assets..
If your business has an annual The amount of money taken by a business, before deductions (eg expenses, tax etc). of not more than £6.5m and does not have a complex ownership structure, these banks have agreed to follow The Standards of Lending Practice. If your business's annual The amount of money taken by a business, before deductions (eg expenses, tax etc). is more than £6.5m and less than £25m, other principles will apply.
If you have a complaint against a bank, you should check if it has signed up to whichever of these standards applies to your business and whether it has acted in A violation of a legal or moral obligation. of any of the standards. The Standards of Lending Practice are overseen by the Lending Standards A collective name for the directors of a company. The board is usually the primary day-to-day decision-making body of a company.and you should contact them if you have a complaint.
Each bank will typically have its own appeal process if you are unhappy with its response to your loan application, as well as a complaints process if you have an issue with how your loan has been dealt with.
A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period. lenders
If you have a complaint against an A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period. lender, you can check whether it has acted in A violation of a legal or moral obligation. of the Business Finance Code.
Most reputable United Kingdom of Great Britain and Northern Ireland lenders of A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period. (see Choosing a loan for information on A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period.) are members of the Finance & Leasing Association (FLA) and will be subject to the Business Finance Code. The Code lays down standards which FLA members must meet when providing A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period. to Customers who are acting in a professional, business or working capacity (in contrast to consumers).. It also operates a A process whereby parties to a dispute use a conciliator who meets with the parties both separately and together in attempt to resolve their differences. procedure and independent A voluntary process by which an independent third party (a mediator) helps two or more parties in dispute come to a mutually acceptable agreement or arrangement. scheme if your complaint cannot be resolved by the A loan to help a business finance the acquisition of an asset. The most common forms of asset finance are leasing and hire purchase where a loan is advanced by a finance provider and secured over the asset being financed. The cost of the loan is spread over the life of the asset. With leasing, unlike hire purchase, the borrower does not receive ownership of the asset at the end of the finance period. provider.
In the event of non-compliance with the Code, there is a review by the FLA which can lead to a warning or expulsion from membership.
Asset-based lenders
If you have a complaint against an asset-based lender, you can check if it is in A violation of a legal or moral obligation. of the Standards Framework.
Most reputable United Kingdom of Great Britain and Northern Ireland asset-based lenders (see Choosing a loan for information on Lending to a business which is secured on the business's existing assets. As well as debts, assets over which security could be taken include equipment, real estate, stock and brands. Unlike invoice finance, which involves a lender buying a business's debts, asset-based lending involves taking security over the debts or other assets. ) are members of United Kingdom of Great Britain and Northern Ireland Finance (formerly the Asset Based Finance Association or ABFA) and subject to the ABFA Standards Framework. The Framework comprises a code and supporting guidance, an independent complaints process and a professional standards council.
The maximum financial award which can be made in your favour under the process is £25,000.
Peer-to-peer and crowdfund lending platforms
If you have a complaint against a peer-to-peer or crowdfund lending platform, the Financial Conduct Authority. A government-established independent financial regulator, responsible for regulating conduct in the financial services industry. codes of conduct and the rules of its trade association (if applicable) could help you.
Peer-to-peer and crowdfund lenders are regulated by the Financial Conduct Authority. A government-established independent financial regulator, responsible for regulating conduct in the financial services industry. and as such have to adhere to the Financial Conduct Authority. A government-established independent financial regulator, responsible for regulating conduct in the financial services industry. codes of conduct.
A number of these lenders are also members of the The UK Crowdfunding Association or UKCFA was formed to promote the interests of crowdfunding platforms, their investors, and clients. The UKCFA requires its members to sign up to the UKCFA code of conduct. (The UKCFA or UK Crowdfunding Association was formed to promote the interests of crowdfunding platforms, their investors, and clients. The UKCFA requires its members to sign up to the UKCFA code of conduct. ) which operates a code of practice and a complaints process which can also lead to suspension or expulsion.
Courts
Depending on the nature of your A concern, problem or complaint which a member of staff raises with his employer., you may be able to bring legal proceedings against a lender. If you are thinking of a legal claim (which if not resolved could go to the Courts) you should look for expert legal advice as soon as possible. For access to a specialist lawyer in a few simple steps, you can use our Ask a Lawyer service.