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.
Overview of our Services
ArchOver facilitates lending and borrowing using five lending models. 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 end of the loan term. Occasionally, we facilitate amortising loans, with a monthly repayment of capital and a monthly payment of interest.
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; will pay the interest due during this period; and, at the end of the loan term, will either repay the loan from profits or be able to refinance the loan. Each month throughout the loan period, we receive information from the borrowing company allowing us to monitor its progress and the security provided. In addition, we visit their business twice a year.
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 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 our Borrowers’ management and make an assessment of their capabilities to manage the business under consideration. We always meet management on the Borrowers’ 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.
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.