Borrower Service – Bespoke
Borrower rates from 10.95% p.a.
- Initial lending with a view to becoming S&I or S&A based
- Bespoke security, usually second charge against business
- Some features of S&I or S&A
- Credit analysis, monthly monitoring
Sometimes we work with Borrowers to replace or enhance existing facilities. Often, this prevents ArchOver taking a first charge on behalf of our Lenders, as it is already held by the incumbent facility provider. In these situations, we will work to put a Bespoke loan in place.
Bespoke loans are arranged on a similar basis to S&I or S&A, with the exception being the rank of the all-assets charge. Bespoke loans are usually initially secured with a second charge which will transition to a first charge. If this is the case, the transition must take place within approximately three months of the loan being facilitated. The interest due from the Borrower will not be affected by the transition. If the security is not transitioning to first charge, then the Borrower will need to be sufficiently profitable to repay the loan during the loan term. Often these loans will be amortising, with both capital and interest being repaid monthly. This flexibility allows us to raise larger amounts of money for Borrowers without disturbing existing facilities, until agreed with the Borrower.
The security provided by Bespoke lending is weaker than that usually provided by S&I or S&A loans, the interest paid is, accordingly, greater. Interest remains unchanged throughout the loan period, even if the loan transitions to either an S&I or S&A.
Lenders: Your capital is at risk and interest payments are not guaranteed if the borrower defaults. Historic loan default rates are not necessarily indicative of future default rates. Lending over the ArchOver platform is not covered by the Financial Services Compensation Scheme. The current average return is based on the total amount raised over the platform. It is the result of calculating the average Lender return, before tax, of every loan funded over the ArchOver platform. Borrowers: In the event of default, ArchOver will seek to recover assets to the full value of the loan. Understand more about: Detailed Risk Warning, Defaults, Recoveries & Losses, General FAQs .