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 £250,000 to £15m and offer a fixed term from 3 to 36 months. All Borrowers must pass our thorough credit analysis before the loan is posted on the platform for Lenders to invest in.
Normally loans are secured with an all-assets charge over the Borrower's business and registered at Companies House. All Borrower revenues flow through controlled bank accounts owned by ArchOver, and the value of the security and management accounts are monitored monthly throughout the loan term. We also site visit at least once a year. Lenders must always check the loan specific security description prior to investing to understand the security for that loan.
The funding process takes place on our platform, where the loan, or ‘project’ as we call it, is posted for the Lenders to view. 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, institutions (including our parent company that has ‘skin in the game’), all investing 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.
Loans are funded on either an interest-only or amortising basis. Lenders will receive their interest payments monthly, with a capital repayment at the end of the loan term when funding an interest only loan. Lenders who have funded an amortising loan will receive a proportion of their capital back each month plus interest on the remaining capital. Borrowers may choose to pay off their loan or refinance, and Lenders may choose to reinvest or be paid back at the end of the term.
* Investment Plan option allocates to the next available loans
** Investment Plan has a minimum investment of £250
How can I contact you?
By email: firstname.lastname@example.org
By live chat: You can find the live chat icon on the bottom right hand side of the website
Our address is: ArchOver, 5th Floor, 40 Gracechurch Street, London EC3V 0BT
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.
- 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 at least once a year.
- We have a zero-tolerance policy for late payments and reporting and will call a default immediately.
- Our innovative approach offers transparency throughout the financing process so you always have control over where your money is invested.
- 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 its assets and not on the value of its directors’ homes nor their personal assets.
- If a business goes from strength to strength and finds that it is able to repay the loan before the end of the term, we do not believe they should be penalised. There are no charges if a Borrower repays early.
- All loans are for a fixed term, for a fixed amount and calculated at a 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.
Who founded ArchOver?
To find out more about our team, please visit our About Us page.
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 works with a number of agencies who have been included on our Group PSL, we therefore ask that NO AGENCIES contact ArchOver direct.
Q&A with Charlotte Marsh, Head of Credit
How does ArchOver review a business that wants to Borrow?
What is the ArchOver approach to Credit Analysis?
What are you specifically looking for when reviewing a Borrower?
- Analysis of the business wishing to borrow and the industry category they operate in
- Financial Statement analysis for strengths and weaknesses
- Director(s) history and risk
- Cash Flow analysis and projections for loan repayment
- Collateral analysis
- Analysis of credit risk
- Third party extended risk – i.e. customers, sector
- Security and the ability to maintain that security throughout the loan
What is your approach to risk?
At ArchOver we monitor both risk and security on a monthly basis, something we believe is unique within the P2P industry.
What sets ArchOver apart from the industry in terms of Credit Analysis?
Where do I register as a Lender and how long does it take?
What are the minimum requirements for Lending over the ArchOver platform?
What checks do you carry out on Lenders?
Pledging & Payment
How do I pledge?
*Investment Plan has a minimum investment of £250
How much can I lend?
* Investment Plan has a minimum investment of £250
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 – this information allows 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?
What is the difference between the two wallets?
- Primary Wallet- This wallet is your main ArchOver wallet for all non-ISA investments. Unlike your ISA wallet, if you make a pledge from your Primary wallet, it is not necessary to deposit funds beforehand. We ask for pledge payments to be made within 96 hours. There is a deposit function in your Primary wallet should you wish to deposit funds via Bank Transfer or via Direct Debit prior to making a pledge.
- ISA Wallet- This wallet is created when you register for an ArchOver IFISA. You must have funds available in your wallet before making a pledge.
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?
The second option is the Investment Plan which will automate the investments. ArchOver’s Investment Plan is open to both Individuals and Institutions. Our Lenders are able to deploy a minimum investment of £250 automatically across a portfolio of secured loans over a period of 26 months, with a return of up to 6.4% p.a.. Interest is paid monthly. IFISA funds can also be used in the Investment Plan.
How many loans should I invest in?
Can you help me choose which loans to invest in?
Can I invest using my ISA?
To open your IFISA, please log in and follow the instructions on-screen. You will need your National Insurance (NI) number in order to complete your registration. To invest using your IFISA, you will need to deposit funds in your 'ISA Wallet' before pledging on the platform. You can do this via the 'Wallets' tab on your Investment Dashboard.
Please remember, you can only have one IFISA with one provider in a tax year. You can change providers during the tax year by transferring your IFISA to a different FCA-authorised platform. As with all investments, your capital is at risk.
Please contact email@example.com with any questions you have.
Read our full FAQs for IFISA
Can I transfer in existing ISA funds into my IFISA?
Once your IFISA has been set up, please follow the link on your ArchOver profile to start the transfer in process. You can transfer in existing ISA funds from the following ISAs; Cash, Stocks and Shares and IFISA.
You will need the account number for the existing ISA that you wish to transfer the funds from.
Please contact firstname.lastname@example.org with any questions you have.
Read our full FAQs for IFISA
Your ISA Wallet
The ArchOver IFISA is a flexible ISA.
Read our full FAQs for IFISA
Can I invest using a SIPP or SSAS?
How ArchOver Works
Who can borrow?
- Be a UK Business (excluding Northern Ireland)
- Be a company which is Private Limited, Public Limited or an LLP partnership
- Have an established management team
- Trade Business to Business
- Have a proven business model, with an experienced well managed team
- Have assets that can be used as collateral for the loan, for the term of the loan
- Be able to provide financial projections for the term of the loan
- Be able to fully satisfy the credit criteria laid out in the Credit Manual for each service
- Trading for at least 3 years, preferably 5
- Profitable business model, or demonstrate a route to profitability
- Minimum assignable contracted turnover value of four times the required loan value
- Low churn of clients, prove that the business can retain clients
- No immediate changes to the business, no management changes or mergers which can change the model
- Business registered in England, Wales or Scotland
- Presence on Companies House
- An appropriate level of collateral to support the loan during the loan term
- Provide management accounts and projections for the loan term
- Provide a cash flow which supports the loan repayments of interest/capital
- Delivered satisfactory responses to questions raised by ArchOver
- An established management team with the relevant experience to trade in the sector
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?
Am I able to withdraw funds from my ArchOver ISA?
Can I reinvest interest earned on my ISA investments even if I’ve invested my full entitlement for that tax period?
What is ArchOver’s Investment Plan?
ArchOver’s Investment Plan provides a lower minimum investment threshold, with your investment being automatically diversified across 10 different Borrowers.
Is there a minimum investment amount when joining the Investment Plan?
How many projects constitute an Investment Plan portfolio?
Once I have pledged to an Investment Plan, can I continue to invest more funds into the same Plan as time passes?
How often can I participate in an Investment Plan?
Will the Investment Plan pledge to the same Borrower twice?
What is the difference between making a standard investment across the platform and doing so via the Investment Plan?
Lenders pledge to the Investment Plan that is live on the platform in the same way they would do to any other project. As soon as the Investment Plan project is funded, the money will start to be pledged to qualifying projects that are posted to the platform.
Who can participate in an Investment Plan?
As an investment to the Investment Plan will contribute to your overall ArchOver portfolio, please make sure that no more than 10% of your total investment Portfolio is with ArchOver. This will enable you to have a diversified and balanced investment portfolio.
How do I participate in an Investment Plan?
What happens if a loan within the Investment Plan ends before the Investment Plan finishes?
Am I able to withdraw funds early from the Investment Plan?
When is the interest paid?
What happens if funds have been invested into the Investment Plan but have not been invested into new projects?
How is the loan secured?
The all-assets 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 service. 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 is a world-leading provider of credit insurance and debt recovery services, sometimes the Borrower will choose their own Credit Insurer or have their own credit insurance already in place, the Credit Team will review all policies as part of the on-boarding process to ensure that the cover is adequate 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 services 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 in these FAQs.
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 historically and the credit insurance cover available on borrowing businesses. The Team looks to leverage the credit insurer’s 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, management commentary, bank statements and directors assurances regarding payments to HMRC for review, we also review the insurance cover. This process allows us to track the progress of our borrowing businesses and act in a timely manner where we need to.
Do you monitor Borrowers after the funds are drawn down?
Is your platform secure?
How is my information stored?
Will I remain anonymous on the Platform?
What happens if ArchOver ceases to trade?
How is ArchOver regulated?
Are my investments covered by the FSCS?
Must my business be profitable?
How do I pay interest and repay the loan?
Will I know who the Lenders are?
Will my customers know I have an ArchOver loan?
Who owns ArchOver?
What type of loans do ArchOver offer?
Secured & Assigned: Where we lend against contracted recurring revenue.
Further details can be found at https://www.archover.com/borrow Please feel free to contact us on 0203 021 8100.
What is the minimum debtor concentration for Secured & Insured?
Are there any other costs or charges?
Can I repay early?
How much can I borrow?
Do you lend to exporters?
How do Borrowers pay credit insurance?
Do you collect interest by Direct Debit?
Where does the money come from?
What sectors do you lend to?
Do you deal with distressed businesses?
How and why is it that you don’t take personal guarantees?
Do you only fund against Accounts Receivable?
Where do you generate loans from?
Do you declare my commissions?
When am I paid commission?
What does a Loan Manager do?
They also manage the Borrower’s Monthly Reporting; producing feedback for the Credit Committee and the ArchOver Board to highlight possible areas of concern/increases in risk in the overall loan book.
Do the Loan Managers conduct Credit Analysis ahead of a Project listing on the Platform?
This allows the Loan Manager to get to know the Management Team and understand the business, all of which forms part of ArchOver’s overall Credit assessment.
The Credit Committee, formed of members of the ArchOver Board and senior executive team members, is ultimately responsible for approving new Loans to the Platform.
So post-funding, what happens?
The Credit Committee then receives a monthly update for each Borrower in the form of both a report and a presentation. Any issues discussed in the meeting are fed back to the Borrower.