Understanding our Services

Our five lending services each have their own characteristics and are distinct in the way they provide security over Lenders’ money. A full explanation of our services is available via the links below. Alternatively, we are always available to speak to you and answer any questions you might have.

Lenders
Borrowers

For Lenders, security is paramount and it is important to understand how your investments are secured.

ArchOver facilitates lending using five lending services. The level of security provided varies from service to service. The more security there is, the lower the interest rate.

 

Click on the icons below to find out more about each service:

 

                    


Overview of our Services


ArchOver facilitates lending and borrowing using five lending services. The level of security provided varies from service to service. The more security there is, the lower the interest rate.


All loans facilitated by ArchOver are for fixed terms and at fixed rates of interest. The vast majority of ArchOver-facilitated loans pay interest monthly with a single repayment of capital at the end of the loan term. Occasionally, we facilitate amortising loans, with capital and interest being paid monthly.


We facilitate borrowing to companies that we reasonably believe, having conducted our own credit analysis, will: continue to trade throughout the period of the loan; pay the interest due during this period; and, at the end of the loan term, either repay the loan from profits or be able to refinance the loan. Each month throughout the loan period, we receive information from the Borrower allowing us to monitor its progress and the security provided.


The assets that we are most interested in are those that are closest to cash - current assets, such as trade debtors, contracted work-in-progress and contracts that generate recurring revenue. The reason is simple: it is this cash that will pay the interest during the loan term, and makes the repayment of Lenders’ capital at the end. We normally have an all-assets charge over the borrowing business which means fixed assets provide additional security even when they are not so liquid.


No business will be a success without a capable management team. As part of our credit process, we get to know the Borrower’s management team and make an assessment of their capabilities to manage the business under consideration. We always meet the management team on the Borrower’s premises before a project comes to our platform for funding, and at least twice a year throughout the period of the loan.


We believe that a running business, with good management, provides the best possible security. We try to ensure that all ArchOver Borrowers meet this criteria.


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.

For Borrowers, we strive to find a solution that fits your company.

 

ArchOver facilitates borrowing using five lending services. Our services cater for different types of businesses and their range of requirements, to ensure we can offer agile, effective funding solutions.

 

Click on the icons below to find out more about each service:

 

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Overview of our Services


ArchOver arranges secured fixed term, fixed rate loans for UK businesses with capable management teams, without personal guarantees. Using our unique range of services we can facilitate the cash your business needs to grow. The more security provided, the lower the interest rate.


ArchOver provides a platform on which Borrowers post their projects to raise loan capital. ArchOver does not lend its own money - all money to be borrowed is raised from Lenders on the ArchOver platform. ArchOver matches Lenders with Borrowers.


Loans raised on the ArchOver platform are for fixed terms, to suit the Borrower and at fixed rates of interest. The majority of ArchOver-facilitated loans pay interest monthly with a single repayment of capital at end of the loan term. We can also facilitate amortising loans, where repayment of capital and interest is made monthly.


The shortest loan period we have facilitated is 3 months with the longest being 36 months. ArchOver loans can be repaid without penalty at any time. Borrowers simply repay the capital plus interest to the day of repayment.


We like to facilitate loans to growing businesses. We recognise that, as businesses grow, the need for working capital increases. We also recognise that, when a business is growing, it is not always in the business’ best interest to repay the loan – we will always consider refinancing its borrowing over our platform.


Before we established ArchOver, many of us ran other businesses which needed to borrow money to grow. We set up ArchOver to help businesses in this situation by replicating the good things we saw from banks and other finance providers and improving upon the bad behaviour we experienced.


We believe borrowing is a personal process. We always meet the management team on the Borrowers’ premises before a project comes to our platform for funding. It is on the basis of this meeting and some basic financial information that we decide whether we can work with the business. Either way, we will give a decision quickly. Following this assessment we begin our credit analysis, we get to know our borrowing companies’ management team, making an assessment of both their capabilities to manage the business under consideration, and the business’ financial circumstances. When conducting credit analysis on potential Borrowers – we are looking for Borrowers that will: continue to trade throughout the period of the loan; pay the interest due during this period; and, at the end of the loan term, either repay the loan from profits or be able to refinance it.


Each month throughout the loan term, the borrowing company provides us with information allowing us to monitor its progress and the security provided. We also visit our Borrowers at least twice a year. Borrowers don’t send us or sell us invoices, there are no monthly reconciliations and we will never contact your customers.


The assets that we are most interested in are those that are closest to cash - current assets, such as trade debtors, contracted work-in-progress and contracts that generate recurring revenue. The reason is simple: it is this cash that will pay the interest during the loan term, and makes the repayment of Lenders’ capital at the end. We normally have an all-assets charge over the business which means fixed assets provide additional security even when they are not so liquid. Usually, we perfect the charge using a controlled bank account - an account in the name of the borrowing company (so your customers don’t need to know you’ve borrowed money on the ArchOver Platform), owned and controlled by ArchOver. All Borrower customers pay into this account and, except in the event of insolvency proceedings, it is cleared each day to the Borrower.


ArchOver charges Borrowers a marketing fee of 4.8% of the funds successfully drawn down. This is a one-off fee paid by deduction from the loan facilitated. We use standard documentation when completing the loan, and there are usually no legal fees to be paid. In the unlikely event that there are legal fees to pay, we’ll advise you of the fees in advance, invoice them to you and deduct them from the loan monies when they are drawn down.


We believe that a running business, with good management and an open relationship with Lenders to the business provides the best possible security for Lenders and the best possible service to Borrowers.

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Risk Warning - Please Read

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, 22 August 2014 to 15 November 2017. Borrowers: In the event of default ArchOver will seek to recover assets to the full value of the loan.

For more information about the risks involved please read the full Risk Warning.