What is ArchOver and how does it work?
Our Borrowers are established UK businesses, with assets against which the loan can be secured. The loans are most often used to increase working capital and to replace invoice financing, factoring or bank overdrafts. The loan sizes range from £250k to £15m and offer a fixed term from 3-36 months at fixed rates of interest with capital repaid at the end of the period. All Borrowers must pass our thorough credit analysis before the loan is posted on the platform for Lenders to invest in.
Loans are secured with an all-asset charge over the Borrower's business and registered at Companies House. All Borrower revenues flow through controlled bank accounts owned by ArchOver and the Borrower, and the value of the security and management accounts are monitored monthly throughout the loan term. Lenders must always check the loan security description prior to investing.
The funding process takes place on our platform, where the loan, or ‘project’ as we call it, is posted for the Lenders to see. Each project is listed with the Borrowing company’s details, the reason they are seeking finance, the rate the Lender will receive, the loan term and the loan security.
Our Lenders are individuals and institutions, all of which invest on the same terms. We do not operate an auto-bid function, the Lender always decides where their money goes. When a Lender sees a project that they would like to invest in, they make a ‘pledge’ in multiples of £1,000. Only when a Lender has pledged will they be asked to transfer funds.
When a project is fully funded, it enters a ‘cooling-off’ period before drawing down. All loans are interest only with a bullet repayment at the end of the term. Lenders receive interest payments monthly, with a capital repayment at the end of the loan term. Borrowers may choose to pay off the loan or refinance, and Lenders may choose to reinvest or be paid back at the end of the term.
How can I contact you?
I want to invest – why should I choose ArchOver?
• ArchOver offers returns of up to 10% p.a.
• There is no cost to lend and rates are fixed: this means the rate posted with the project is the rate you will receive throughout the duration of the loan term.
Security & asset-based loans:
• Lender security is at the forefront of what we do.
• All of our loans are asset-based with two tiers of protection. We offer two distinct lending models that reflect this, ‘Secured & Insured’ and ‘Secured & Assigned’. Please visit our ‘Lend’ page to find out more about these models and exactly how our loans are secured.
• We believe our credit analysis is one of the most thorough in the sector, and we are the only platform to monthly monitor the Borrower’s management accounts and assets throughout the loan term along with onsite visits twice a year.
• We have a zero-tolerance policy for late payments and reporting.
Control & transparency:
• Our innovative approach to P2P business lending offers transparency throughout the financing process so you always have control of where your money goes.
• You invest project-by-project and can review all loan and business details via the platform.
I want to borrow – why should I choose ArchOver?
• ArchOver facilitates loans based on the quality of a business and the assets and not on the value of its directors’ homes and other personal assets. This means the Borrower can keep their personal lives separate from the business. PGs are also notoriously difficult to pursue and can take years to collect, often returning well below their expected value.
No cost for early repayment:
• If a business goes from strength to strength and finds that it is able to repay the loan before end of the term, we do not believe they should be penalised. There are no charges if a Borrower repays early.
Fixed Term, Fixed Rate Loans:
• All loans are fixed term, fixed amount and fixed rate which allows the Borrower to plan for the future and use the resources available to them in the most efficient way possible.
• Financing is a one-off process, rather than the weekly or monthly concern of invoice discounting.
Our Lending Models:
• ArchOver always endeavours to find a solution that best suits the Borrower’s business and requirements. For more information on our ‘Secured & Insured’ and ‘Secured & Assigned’ models, please contact our commercial team on 0203 021 8100 or at email@example.com.
Who founded ArchOver?
Who is ArchOver backed by?
How is ArchOver regulated?
ArchOver is not covered by the Financial Services Compensation Scheme. Your capital is at risk.
What happens if ArchOver ceases to trade?
Is your platform secure?
I am interested in working for ArchOver – where can I find out more?
We never turn away from the opportunity to meet exceptional people and if you are really good we will find a role for you. For more information on current opportunities, please visit our Careers page.
ArchOver already work with a number of agencies who have been included on our Group PSL, we therefore ask that NO AGENCIES contact ArchOver direct.
How do I register as a Lender?
What are the minimum requirements for Lending through the ArchOver platform?
What checks do you carry out on Lenders?
Pledging & Payment
How do I pledge?
How much can I lend?
Are there any fees for lending?
How do I pay for my pledge?
- Direct Debit: Used by the majority of our Lenders this enables you to set up a mandate to transfer the amount automatically when you make a pledge. You only need to set up the mandate once allowing all future pledges to be collected directly from your designated bank account. Go to the Bank Account section in ‘My Profile’ to enable Direct Debit. For more information on Direct Debit and how it works, please visit: directdebit.co.uk/. The maximum single payment you can make by Direct Debit is £20,000. Any payments over this limit must be made by bank transfer
- Bank transfer: After confirming your pledge to a project you will be presented with three pieces of information, a bank account number, a sort code and your lender reference number, allowing you to manually transfer the pledge amount. For each payment that you make via bank transfer, the same sort code, account number and reference is used.
When do I have to pay for a pledge I have made?
How does Direct Debit work?
When will I start to earn interest?
How is interest paid?
What will the average return on my investment be?
What if I need to withdraw my investment?
Can my pledges be automated?
How many loans should I invest in?
Can you help me choose which loans to invest in?
Can I invest using my ISA?
Can I invest using a SIPP or SSAS?
How ArchOver Works
Who can borrow?
- Trading for at least 2 years
- Turnover of at least £2m to support £250k + loans
- England & Wales or Scottish Registered Business
- Trade Business to Business
- Proven business model & stable management team
- Business model based on the supply of goods and services
- Have a Credit File
- Have an Accounts Receivables balance which a loan can be secured against – 80% LTV
- Accounts Receivable can be credit insured
- Trading for at least 3 years, preferably 5 years
- Turnover of at least £2m
- England & Wales or Scottish Registered Business
- Trade Business to Business
- Proven business model & stable management team
- Business model based on contracted recurring revenue
- Allow ArchOver to take assignment of the contracts
Can I ask the Borrower questions?
What is the average loan term?
What and why is there a 14 day cooling off period?
What are the tax implications?
What happens if a project fails to fund?
Do you grade each loan?
How do you manage late payments and monthly reporting defaults?
Can the borrower repay the loan early?
What if I have a complaint?
What is an ISA (Individual Savings Account)?
There are currently four types of ISA, with each one offering different returns and risk-levels: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA (IFISA), and Lifetime ISA.
What is my annual ISA allowance?
How many ISAs can I have in one year?
What is an IFISA (Innovative Finance ISA)?
However, it is important to remember that, as with any form of investment, your capital is at risk, and is not covered by the Financial Services Compensation Scheme. While the IFISA is a tax-efficient way to invest and earn favourable returns, it does not protect your money from capital losses and you could get back less than you invested.
What is the difference between an IFISA and other ISAs?
The Cash ISA includes savings in bank and building society accounts and some National Savings and Investments products. A Cash ISA usually offers returns of 1 – 3% p.a.. Your capital is not at risk as you will never get back less than you put in.
The Stocks & Shares ISA includes shares in companies, unit trusts and investment funds, corporate bonds and government bonds. With a Stocks & Shares ISA, you are investing your money and, as such, there is the risk that the value of your money can decrease as well as increase over time.
The Lifetime ISA (“LISA”) can be used to purchase your first home or to help you save for retirement. It works slightly differently to other ISAs, in that you can put up to £4,000 a year into your LISA until you are 50, and the government will add 25% bonus to your savings, up to a maximum of £1,000. You can only withdraw your funds if you are purchasing your first home, are aged 60 or over, or are terminally ill, otherwise there is a 25% charge.
Who can open an IFISA?
When is the tax year?
Can an IFISA be held with more than one provider?
Investors can transfer funds between platforms or ISA managers. This is especially useful if there are funds subscribed to ISAs in previous years that you would like to invest in a Peer-to-Peer platform.
How do I set up my ArchOver IFISA?
If you are an existing ArchOver Lender, you should first log in to your account. You will see an option to set up your ArchOver IFISA, which will take you through the process. Please remember that you will need your National Insurance (NI) number to complete the process, even though you are already registered on the platform.
You will need to deposit funds into your new ISA Wallet to be able to invest.
How do I make an investment using my ArchOver IFISA?
How do I deposit funds into my ISA wallet?
Go to ‘Wallets’ and click on ‘Top-up Wallet’. This will open a pop-up window, giving you the option to enter the amount you want to add to the wallet and choose your preferred method of transferring the funds.
If you have Direct Debit enabled on your ArchOver account and you choose this transfer method, the funds will be debited from the bank account listed on your profile. If you choose the bank transfer method, you will receive an email with the bank details.
Can I transfer existing investments from my standard ArchOver account into my IFISA account?
Can I transfer my ISA from another provider to your IFISA?
How is the loan secured?
The all-asset charge and controlled bank accounts are in place for all loans (With the exception of the Research & Development Advance) on the ArchOver platform. Some loans are further secured by a second tier of protection, which sits on top of the basic security requirements listed above, and which varies dependent on the lending model. Secured & Insured loans are secured against a company’s Accounts Receivable (ARs), the money owed for the goods and services the business delivers to its customers. The ARs are insured by our partners Coface against late or non-payment. Coface are a world leading provider of credit insurance and debt recovery services. For Secured & Assigned loans, ArchOver takes assignment of the contracted recurring revenue, meaning ArchOver is the beneficial owner of those contracts, and may dispose of them to a third party if necessary.
These two lending models address security in different ways to suit the different needs of the Borrowers, but with both, Lender security throughout is paramount. ArchOver always ensures that the security in place is appropriate. We have a zero tolerance of default. Unlike other P2P platforms, this includes any missed payment. We also monitor the Borrower monthly throughout the loan term. More information on our due diligence process can be found below.
What is the due diligence process?
It is fair to say that our Borrower Due Diligence never stops, but the linchpin in the process is the work done during Credit Analysis, before a loan goes live on the platform. Once a prospective Borrower has provided the necessary materials, their loan application is passed on to the ArchOver Credit Team for review. The Credit Team examines the business’ historic accounts, management accounts, projections and available security. For a Secured & Insured loan, they look at the debtor history and the credit insurance cover available on borrowing businesses. The Team looks to leverage the credit insurers’ knowledge of the Borrower’s clients and their creditworthiness, as well as their broader micro and macroeconomic market data, into the Credit Analysis process. In many ways, this insurer-led analysis represents a second level of Due Diligence.
For a Secured & Assigned loan, the Team also reviews the Borrower’s historic levels of monthly recurring revenue and analyses the rate of client churn. When the Credit Team has completed its review, they issue a paper to the ArchOver Credit Committee with a recommendation on whether to proceed with a loan or not. Subject to Credit Committee approval, the loan will then be prepared for the platform. After the loan has funded and drawn down we enter a new phase of Due Diligence, which we call Monthly Monitoring.
Each month we request an up-to-date debtor listing (for Secured & Insured) or recurring revenue schedule (for Secured & Assigned) and the previous month’s management accounts for review. This process allows us to track the progress of our borrowing businesses and act in a timely manner where we need to.