No matter what the size or strength, businesses sometimes find themselves in need of a cash injection. Perhaps there is an opportunity for the business to grow? Expand the current product offering? Or there are new legislative requirements that must be met?
Whatever the reason, secured business loans are a flexible, cost-effective and efficient way for a business to achieve that essential resource.
At Accredo, we are keen to support brokers across the UK in helping their customers to access the funding and expertise needed to back their ambitions. Here, we address some common misconceptions associated with secured lending and (hopefully) offer a few ideas on how you can respond.
The application process takes an age
This couldn’t be further from the truth. We ask for no more than a page of initial information and our team of underwriters will provide options within three working hours! What’s more, we can also offer same-day payment once all documents have been received and processed.
Business people won’t give charges on their homes
20 years ago that may have been the case but with the lending landscape changing faster than ever before, most small business owners now appreciate they may have to use personal assets to secure a finance facility for their company.
The interest rates are sky high
No business owner wants to commit to a loan with an unsuitable repayment profile. For a rate to be competitive we believe it must also be appropriate to the borrower. Our rates are often lower than bank overdrafts and similar products. What is most important is a loan is compatible in term and profile for the borrowing business. With vastly more flexibility than high street lenders we pride ourselves on providing the loans our clients need rather than what a lender is prepared to offer.
The interest rate will depend on the loan size, loan term, the overall credit profile and the equity available in the property being secured against the loan.
“I’m a start-up so will not be considered”
It’s always nice, and somewhat advantageous, to be part of your customer’s journey from the very beginning so you’ll be pleased to know our specialist team will always consider lending to businesses who are just starting up. From start-up funding, finance to purchase a business, or general cash flow for stock and people, we can look at all situations.
Why do we do this when other lenders won’t? Because we look at the likely success of the business, the people behind it and their experience. All proposals are considered by people and not by algorithms.
A secured business loan may affect my personal credit rating
Whilst your customer is using a personal asset to secure business borrowing, they will see no adverse information registered all the time the loan is serviced in line with its terms.
You must have a perfect credit rating
We don’t apply the strict lending criteria that many of the “big” lenders do, which means our decision to lend depends upon the circumstances of the business and will not be dictated by a less than perfect credit rating. Our underwriters review each business on a case by case basis and assess their overall risk profile. We have 20 years’ experience of tailoring loans to borrowers and pride ourselves on being as flexible as any commercial lender in the UK.
Our specialist team is always on hand to answer your queries regarding secured business loans so please do call us on 01444 255915
We are open Monday to Thursday 09:00 - 17:30 and 09:00-17:00 on Fridays.
Our switchboard number is 01444 255915 or you can email on customerservices@accredo.co.uk and we'll get back to you as soon as we can.
We will need the following information:
Finance brokers can submit enquiries using our new business portal which our customer services team can provide access to.
Please call 01444 255915
for more information or email customerservices@accredo.co.uk
Please note we are unable to accept applications direct, all applications must be received from a finance broker.
Once all conditions have been satisfied and we have completed our final checks, we will release the funds and they will be in the customer's bank account within 24 hours.
Firstly we will need to receive a request for finance via a broker.
If we are able to issue an acceptance, we will send our Property and Borrower questionnaire for the client to complete. On receipt of this completed questionnaire we will contact the client to collect the legal fees and, if applicable, valuation fees.
Once we have received the fees, we will instruct our solicitors, book the valuation, contact other lender/s and raise loan paperwork for signature.
Whilst we make every effort to complete the process as quickly as possible and in line with the client's requirements, we are unable to give a specific timescale due to some aspects of the facility being reliant on external parties but once all conditions have been satisfied and we have completed our final checks, the pay-out process can take up to 24 hours.
Full details can be found on our 'Our Process' page.
No, we only offer secured loans.
We offer fixed rate, fixed term loans from 3 months to 10 years secured on UK property.
We are also happy to consider secured finance leases.
We do not offer unsecured finance.
We are happy to consider security in England and Wales.
Please note we are unable to lend against property in Northern Ireland or outside of the UK.
All our agreements must be secured on UK property.
We consider residential, buy-to-let, mixed-use and commercial properties.
Subject to suitable equity we consider 1st, 2nd, 3rd and even 4th charges.
Yes, we are happy to offer a low start payment option and in some circumstances we are happy to consider seasonal repayments.
We are happy to consider proposals from all industry sectors, there are no exclusions.
We are happy to consider a further advance once your first agreement is live.
If sufficient equity is available the additonal borrowing can be attached to our existing charge. If there is not enough equity an alternative property can be considered.
We require these to fully understand your clients reasons for borrowing, their background and that of their company as well as to ensure they are able to repay us in line with the terms of the agreement.
If a property doesn't value up our underwriters will review the proposal to identify what level of borrowing we can consider.
There is no fee to apply for finance.
When an application is accepted, customers are required to pay a contribution towards the legal fees in order to begin the legal process and in some circumstances a valuation fee may be required.
Any loan secured upon such a property would have to be repaid when the property is sold, but we may be able to offer you a short term facility.
Please contact your broker to discuss the options available to you.
Yes, it is necessary for us to carry out credit searches in order to consider your application.
Sight of a valid passport or driving licence is preferable for this purpose. We can send you a list of our acceptable forms of ID.
As we will be taking a charge over a property, we require the home owners and borrower to sign certain legal documents in the presence of their solicitor.
Subject to the conditions of the acceptance being fulfilled.
Existing customers should approach the broker they initially dealt with to discuss any additional requirements.
You will be required to make a contribution to the legal fees involved in setting up your facility.
In some circumstances an internal valuation of your property may be required. If there is a charge for this service, you will be made aware in advance of the survey.
When your agreement goes live a 1% acceptance fee becomes due. Depending on the term of your agreement a £95.00 annual administration fee may be applicable and a 1% security release fee is due to remove our charge from your property.
Fees are applicable if your agreement is not conducted within the contractual terms.
We may be able to do this in some circumstances, however please note that a fee will be applicable.
Yes. Clients are able to overpay, but it should be noted that our facilities are of a fixed rate, fixed term nature.
Clients experiencing difficulties meeting their repayments should contact us as soon as possible so we can identify and agree the most appropriate course of action.
Please get in touch with us as we may be able to transfer our security to another suitable property or we can provide an early settlement figure.
No, we require payment of a 1% security release fee to remove our charge.
We're sorry you feel you want to make a complaint. There are a number of ways you can get in touch:
Post: Mill Green House
Mill Green Road
Haywards Heath
West Sussex
RH16 1XJ
Tel: 01444 255915
Fax: 01444 255910
