BUSINESS LOANS
We can help you raise finance by developing your business or a new business plan. Don’t let the barriers of traditional multi-criteria lending hold you back. Start-ups and existing businesses can benefit from a business loan on favourable terms. If you need capital for any purpose, review the plan below and then go to the – business loan application – page to submit the form. Once we have assessed your application, we will contact you to discuss your funding options.
LENDING PLAN
100% BUSINESS FUNDING
100% Business development funding
Get the capital you need with a competitive fixed rate, flexible terms, up to 10 years repayment and 1 year grace period. Funding is available in two ways. Secured, with a letter of guarantee that you provide to the lender, or unsecured, which the lender will cover with a letter of guarantee from their bank at a small cost to you, depending on the case. It is worth noting that the lender will not ask for complicated business plans or projections, but if they are available they will increase the percentage to approve your loan. In most cases, however, a detailed presentation of your business purpose will suffice.
Flexible credit line
If you are looking for funding to complete a business project or for any other purpose, we can provide the capital you need:
Fixed interest rate: from 3.5% to 5% per annum.
Repayment terms: up to 10 years.
Grace period: from 6 months to 1 year, depending on the nature of the business plan.
Lending plans
1. Direct bank transfer loan: the borrower pays the interest annually and the capital at the end of the loan period.
2. Non-recourse loan: the borrower pays a higher interest rate for 10 years and does not repay the capital at the end of the 10 years.
3. SBLC/BG: a bank instrument issued by the lender to be monetised at an interest rate by the borrower’s bank.
Guarantees
The lender does not accept physical assets as collateral due to the complexity and length of time required to verify international physical assets. The lender will only accept bank instruments – (SBLC/BG) – sent directly to its bank if the verification and approval team requires collateral after reviewing the loan application.
Financing tailored to your needs
Secured and unsecured financing and a wide range of financial solutions for all sectors.
Start funding
From: 1 million and above.
Benefits
Lower interest rates: often cheaper than traditional bank loans.
Greater flexibility: subject to agreement, flexibility on interest rate, term and grace period.
Borrowing capacity: up to 1 billion EUR, GBP, USD.
Connection to the lender
Once you have completed the – business loan application form – and sent us all the necessary documentation for review, we will put you in touch with the lender if the basic requirements are met.
Loan transaction process
Once we have signed a service fee agreement and data processing consent with you, we will structure your file to be sent to the lender’s legal department. Once they have reviewed your application, they will carry out a Know Your Customer (KYC) check on your documents. After the lender has verified the business applying for a loan, you will be notified by the lender of the approval or rejection of your application. In case of approval, the lender and the borrower will enter into a framework agreement with the terms and conditions of the loan to start the process and initiate the loan transfer.
Terms and conditions
Applicants must be at least 18 years old.
To be considered for an existing business loan application, you must have been trading for at least 12 months. For loans up to £500,000 unsecured, you must be based and trading in the UK and overseas and the purpose of the loan must be solely business related.
FAQS
What is 100% business development funding?
There are providers who will finance up to 80% of a business project. The remainder must be provided in cash by the project owner. The funding you receive from our provider will provide you with all the capital you need to complete your project.
What does it mean that the lender will not ask for complicated business plans or projections?
Traditional lending requires physical assets as collateral to ensure that if the borrower defaults, the asset will be seized and liquidated. This is not the case with alternative lending. An international lender of capital to businesses does not require the freezing of physical assets. The loan is always backed by a letter of guarantee. So there is no worry about whether or not the capital received by a company can be repaid. The reason is simple. Before the capital is provided to the borrower, the lender’s bank will already have a letter of guarantee (either from the borrower’s bank or issued by the lender on behalf of the borrower) for an amount equal to the capital provided. This means that whether a business plan succeeds or fails, the lender will liquidate the letter of guarantee and recover its capital. This is in contrast to traditional lending, where the emphasis is on the profitability and growth potential of a business plan, so that in the event of failure the lender will use the asset – the guarantee – to secure capital. The alternative lender therefore clearly wants to see the borrower’s business succeed, but is in no way influenced by the performance or future profitability of the business.
What is a flexible credit line?
Flexibility in lending means that the provider does not focus exclusively on providing capital for new business projects, but covers almost all aspects of any business need. It is worth paying particular attention to low and stable interest rates, the repayment period, the grace period, etc. All these elements, combined with the ease of applying for, approving and receiving a loan, lead us to characterise the lender’s credit line as flexible.
What is a direct bank transfer loan?
This type of loan means that our provider does not require you to pay interest on a loan per month, but per year. It also means that if you have received a loan capital (X) and have agreed a fixed interest rate for (X years) of repayment, you will only have to pay the interest rate each calendar year and not part of the loan capital. Therefore, at the end of the loan period, for example 10 years, in the last year you will pay the last interest but also the full amount of the capital you have received.
What is a non-recourse loan?
This type of credit is often subject to different interpretations. In the case of our provider, however, it has a different character and is analysed exactly as we formulate it in the credit plan. For your information, we will analyse this aspect. In the case of non-recourse loans, the predominant security is an asset, usually of the same value as the capital requested by the applicant borrower. This means that if the borrower is unable to repay the loan, the lender will seize the asset. If it doesn’t cover the capital owed by the borrower because it has lost value over the years, the lender has no right to turn to any other asset. However, global lenders will not accept natural assets as collateral for a loan, only bank guarantees.
What does the issuance of SBLC/BG banking instruments by the lender mean?
This type means that instead of sending the loan in cash to the borrower’s account, the provider sends an SBLC or BG letter of guarantee to the borrower’s acquiring bank, which the borrower can monetise at any time. This also means that, in addition to monetising it, the borrower may wish to use it for other business activities as a means of demonstrating financial strength and credibility. For example: participation in a tender or auction, good performance of a contract or project or delivery, receipt of an advance payment, reimbursement of deductions, good payment (of goods or other loans, etc.), setting up and operating a travel agency, obtaining a licence from the government, etc.
What does it mean that the lender will not accept natural assets as collateral?
A global lender cannot accept the freezing of a borrower’s assets. Not only would it be very costly, but it would also take a long time. Typically, global lenders have chosen to secure the funds they lend with an SBLC/BG. This means that if a borrower provides an SBLC or BG to obtain its loan and subsequently finds itself in a situation where it is unable to meet its obligations, the lender will monetise the guarantee and receive its capital. It is worth noting that for many businesses that are unable to provide a guarantee due to poor credit history, liquidity or low annual turnover but need a loan, the lender will consider how it will cover its capital. In this case, the borrower will incur a small cost from the lender in providing the necessary banking instrument to secure the loan.
What does tailored finance mean?
There are different factors and different needs in corporate finance, depending on the sector and type of business. These needs vary. More often than not, they have to do with a small company’s inability to meet its obligations. This is all the more true in the case of a loan where, in (X) time, a small company will find it harder to cope than a larger one with more profits. An experienced provider will, depending on the amount of capital requested by the applicant, take into account the applicant’s cash flow over the last 3 years when considering the application. Using modern methods and the experience of his team, the lender can easily see that the business will eventually be unable to meet the borrowing requirements. Instead of rejecting the business, he starts the counter-proposal process. In other words, if a company, based on a business plan, asks for a loan of 2 million with a repayment period of 5 years, even though the business plan shows cash flows that will cover the loan, the lender, based on his own data, can counter-propose a period of 6 or 7 years if he foresees that the loan cannot be repaid in that period. The lender’s adjustment and new proposal will be aimed at making it easier for the borrower to meet his needs.
Can I apply for a business loan for a smaller amount?
Yes. In addition to strong global lenders, our company has the ability to connect you with smaller lenders. You can apply to them for smaller amounts from £10,000 to £500,000. However, to apply for an unsecured business loan you must be based in the UK, have a UK bank account, be trading as a start-up for at least 12 months and have an annual turnover of at least £10,000. It is worth noting that although you are not required to secure your loan with personal or business assets, you may be asked to demonstrate a good personal and business credit history.
When will we be connected to the lender?
When you submit the Business Loan Application form on our website and send us the required documents for review, this is considered a preliminary process. Our team will review your application to understand your needs. Once we have informed you and you wish to proceed, the next step is to enter into a fee agreement for our services, which will be paid when you receive your loan. We will also need to structure your file to present your work to the lender in the best possible way. This will reduce the chance of rejection. In our experience, as the lender has set certain standards that we follow, there is a higher success rate when a file is structured correctly and the lender’s team can assess it in the optimum time. Recognising this, once the process between us is complete, we send you along with the business loan application file, all the lender’s details and vice versa so that there is communication between you. Our company relies on simple recommendation and we are not involved as an intermediary between the lender and the borrower/consumer, we do not act as a credit broker or on behalf of a credit broker, nor are we involved in any agreements or documents that need to be validated during the process of sending and receiving a business loan.
Our fee is paid when the loan is disbursed. Once the loan agreement is signed, all obligations are the sole responsibility of the parties involved. All transactions between the lender and the borrower are made via Swift MT103s at the bank coordinates specified in the loan agreement.
