Secured & Insured
Secured & Insured
Lender rates from 6.25% p.a.

 

  • All-assets charge against business
  • Secured finance against Accounts Receivable
  • Accounts Receivable (ARs) insured against late or non-payment
  • Credit analysis, monthly monitoring, controlled bank accounts

Our original and core service.

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.

For Secured & Insured loans, the assets that we are primarily interested in are the Accounts Receivable (ARs). The ARs of a business comprise the total owed to the borrowing business by its customers (trade debtors) plus contracted work-in-progress (WIP) (valued at cost). The security provided by these assets is further enhanced by a credit insurance policy, usually provided by Coface, which we insist the Borrower takes out with ArchOver as the joint-insured and loss payee. Usually, the credit insurance cover provided is 90% of the value of the ARs and pays out in the case of protracted default or where the Borrower’s customer’s business fails.

When determining the maximum value of the loan, ArchOver considers the value of the ARs, deducting trade debtors out of term and for amounts uninsured. The maximum loan-to-value of security provided is 90% against the trade debtors plus 50% against the WIP. Accordingly, the discounted security must always be equal to or greater than the loan value.

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.

Please note: Credit insurance (the ‘I’ of ‘S&I’) does not insure the loan or interest payments and does not guarantee the repayment of Lenders' capital in the case of Borrower default.

Risk Warning

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 .