Solutions
Loans
Offering both secured and unsecured options, this bespoke financial solution grants businesses access to funds over a set timeframe at a predetermined rate. Whilst secured loans typically necessitate a debenture over business assets, including property, not all banks offer this solution.
Understanding Loans
Business Loan (secured and unsecured) – this product provides businesses with money for a fixed period of time at a fixed price.
You may be required to provide additional security to borrow the desired amount. A secured loan will often mean the business will need to provide the bank with a debenture over the businesses assets including the property if owned by the business. Not all banks will offer this product.
Loan Information
Loan Regulation Features
Suitable Customers
It is important that you know if a product is suitable for you. All finance agreements are subject to underwriting, it is essential that you read and understand any finance agreement prior to signing.
Regulated requirements
- UK Based customers
- Sole Traders purchasing an asset under £25k
- Partnerships (3 or less individuals) purchasing an asset under £25k
- Membership clubs or Trusts purchasing an asset under £25k
- Over 18 years
- Customers with the ability to repay the agreed rentals.
- Customers who can make payments via direct debit
Unregulated requirements
- UK Based customers
- Sole Traders purchasing an asset over £25k
- Partnerships (3- individuals) purchasing an asset over £25k
- Partnerships (4 + individuals)
- Limited companies. Limited Liability Companies PLCs
- High Net Worth Individual – Asset over £60,240
- Over 18 years
- Customers with the ability to repay the agreed rentals.
- Customers who can make payments via direct debit.
Product Purpose
It is important that you know the purpose of each of the products we offer. By understanding what there are designed for gives you a greater understanding of how they will work for you.
Regulated requirements
- Term varies from 6 months – 84 months (subject to asset and funder)
Monthly payments - Money is sent directly to the customer.
- Any assets purchased are never owned by a finance company so can never be repossessed
Unregulated requirements
The purpose of this product is to release capital to support businesses expansion or restructuring, MBO / MBI, acquisitions, provide capital injections to boost cash reserves, purchase stock, property, refurbishments, non-tangible assets, cover a VAT payment. Supporting a wide variety of business funding needs
Product Characteristics & Benefits
It is essential that you understand the characteristics and benefits of our products and how they work. They all have both legislative and regulatory differences as well as more practical considerations to consider.
Regulated requirements
- Terms from 12 months – 72 months, some assets will allow up to 120 months. Heavy commercial or leisure assets may have different terms. 6 months for fertiliser.
- Monthly, quarterly, half yearly & annual payment profiles allowed.
- Offers all the benefits of ownership without the initial capital outlay.
- You will get immediate and unlimited use of the asset.
- Fixed rentals and flexible payment structures allow businesses to match income and expenditure cycles.
- Prime location of the asset must be in the UK.
- Balloon payments can reduce the rental costs (Only available on certain
assets) - Ability to finance the balloon payment at the end of the agreement.
- If you are classed as a HNWI you may be asked to prove your HNWI status
*(High net worth individual – someone who earns more than £150k per
annum or net assets exceeds £500k
Unregulated requirements
- Term varies from 6 months – 84 months (subject to asset and funder)
- Monthly payments
- Money is sent directly to the customer.
- Secured loans would often be against a debenture.
- Any assets purchased are never owned by a finance company so can never be repossessed.
- If you are classed as a HNWI you may be asked to prove your HNWI status
- *(High net worth individual – someone who earns more than £150k per annum or net assets exceeds £500k)
Pricing & Fees
Products have different fees and pricing depending on type, term and regulatory governance it is essential you read and understand any product features relating to pricing and fees prior to signing.
Regulated requirements
- Fixed pricing, interest bearing over a fixed period.
- Variable deposits and balloons can vary the monthly repayments in line with the company.
- VAT is paid up front in most instances; some banks allow VAT deferrals for up to 3 months or spread the VAT over the term.
- The agreement may be settled, partially or in full, at any time throughout the term (sometime fees may apply).
- Upfront processing fees may apply. Option to purchase fee may apply.
Charges may apply if you miss any payments. See below.
Right to withdraw within 14 days applies - Voluntary Termination available
If you select to have a balloon payment, you are responsible for this
payment. - Lump sums throughout the life of the agreement may be able to be paid to some funders and rentals recalculated for the remaining term. It does not reduce the term, just the rental amounts.
- Commission is paid to the broker for this type of introduction, if you wish to know more email compliance@peregrinefinance.co.uk
Unregulated requirements
- Fixed pricing, interest bearing over a fixed period.
- VAT is not included within a loan.
- Option to make early repayments in a lump sum which will reduce the
balance (not the term), or can settle the agreement early (fees may apply). - Termination can happen prior to the end of the term however charges may apply.
- Commission is paid to the broker for this type of introduction, if you wish to know more email compliance@peregrinefinance.co.uk
Risks & Considerations
Entering into any financial contract is to be done with due consideration to risk. It is essential you read and understand any financial product prior to signing. If you have any doubt in understanding the risks to you as a customer you must seek clarification from the finance provider.
Regulated requirements
- Missed payments may impact the customers credit rating and result in the asset being repossessed.
- Ownership of the assets remains with the funder until all payments have been made.
- After the withdraw period, customers cannot cancel the agreement without settling off the outstanding payments, fees may apply.
- Not suitable if you want to trade in your asset at the end of the term for a new asset (consider lease options)
- Not suitable for retail consumers.
- Additional Security maybe requested by the finance company such as a
personal or company guarantees.
Unregulated requirements
- Missed payments may impact the customers credit rating which may make obtaining credit in the future more difficult or expensive.
- If there is security taken by the bank, they may use this to recover any losses if a customer defaults on payments
- After the withdraw period, customers cannot cancel the agreement without settling off the outstanding payments, fees may apply.
- Not all lenders offer this product.
- Not available or suitable on all assets, discuss with broker
- Not suitable for retail consumers.
- Additional charges could apply (some are listed below)
- Late payment fees
- Direct debit represented fee
- Settlement charges (standard or new business)
- Termination fees
- Novation charges
Vulnerability
We have a broad spectrum of customers from SME to PLC businesses, we treat everyone with due care any consideration and it is imperative that our customers understand what they are agreeing, we look to support any customer with additional requirements or needs.
Regulated requirements
Our customers come first. We want to ensure that you fully understand what you are agreeing to.
If you require additional support, you must make your broker aware so they can offer the most suitable support
Unregulated requirements
Our customers come first. We want to ensure that you fully understand what you are agreeing to.
If you require additional support, you must make your broker aware so they can offer the most suitable support.
