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.
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 persevered security there is, the lower the interest rate.
Click on the icons below to find out more about each service:
Overview of our Services
Most of the 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.
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 .