Secured & Assigned
Lender rates from 7.75% p.a.
- All-assets charge against business
- Secured finance against contracted recurring revenues
- Guaranteed revenue contracts assigned to ArchOver
- Credit analysis, monthly monitoring, controlled bank accounts
An increasing number of companies provide the use of their assets, be they physical or intangible assets, under rental or licencing agreements. These agreements provide the supplying company with long-term contracted revenue streams, making the businesses stable, predictable and potentially ideal Borrowers.
This was the second service we introduced.
We register a first all-assets charge at Companies House over the borrowing company. This means that, if the borrowing company defaults and we appoint an administrator, we have the first call on the company’s assets. We perfect this with an ArchOver controlled bank account into which payments from Borrower customers flow. Except in the event of insolvency proceedings, the controlled account is cleared each day to the Borrower.
When determining the maximum value of the loan, we consider the revenue generated in a year from contracted recurring sources, such as a rental income. When calculating this, we make an allowance for the customers who will be lost. This loss of customer base is known as 'churn' and must be in single digit percentages each year. The loan is usually no more than a 3-month advance against the annual contracted recurring revenue.
All security details are listed alongside each loan on the platform. It is recommended that Lenders read and understand the information within the Project Description before investing.
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 .