• All-asset charge against business
  • Secured against Accounts Receivable (ARs) or contracted recurring revenue
  • ARs uninsured/recurring revenue unassignable
  • Credit analysis, monthly monitoring, controlled bank accounts

This type of borrowing is similar to our S&I or S&A services except that, for good reason, the borrowing company cannot get credit insurance (eg, providing services to HM Government) or we cannot obtain an assignment of contracts.

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.

Should the Borrower be a firm of solicitors, we cannot operate a controlled bank account. Firms of solicitors operate with authorisation from, and are subject to, the rules of the Solicitors Regulatory Authority (SRA). The SRA does not allow lenders to operate a controlled bank account for client revenue. In this scenario, ArchOver’s charge could be open to challenge and reduces security on the loan. Firms of solicitors pay Lenders higher rates of interest to compensate.

When assessing the maximum loan advance, ArchOver will consider the value of the Accounts Receivable (ARs), deducting trade debtors out of term. The maximum loan-to-value of security provided is 90% against the trade debtors plus 50% against the work-in-progress. Accordingly, the discounted security must always be equal to or greater than the loan value. Alternatively, we look at the revenue generated in a year from contracted recurring sources. 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.

Risk Warning

Lenders: Don’t invest unless you’re prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Interest payments are not guaranteed, if the Borrower defaults we offer no assurances that capital can be recovered. Historic returns and loan default rates are not necessarily indicative of future returns and future default rates. ISA eligibility does not guarantee returns or protect you from losses. Lending over the ArchOver platform is not covered by the Financial Services Compensation Scheme. Take two minutes to learn more and please read our P2P Guide .

ArchOver Limited is a company registered in England and Wales with company number 07235487. ArchOver Limited is authorised and regulated by the Financial Conduct Authority (Reg No: 723755).