Loans of between £50,000 and £250,000 were considered for SME businesses based in the Midlands who had a viable business plan but were unable to secure finance to progress that plan from normal commercial sources. Applicants had to have approached their bank or alternative provider first.
Loans were agreed for up to a 3 year period and priced at a commercial rate of interest usually in a range of 6% to 10% above Barclays Base rate. Any collateral within the company to secure the loan was taken, the availability of which influenced the interest rate charged. An arrangement fee and a monitoring fee was also charged.
We were required to undertake due diligence to assess the viability of the applicant business and in appropriate cases an independent accountant, or other appropriately qualified professional, was commissioned to complete a review of the business plan on our behalf, at the applicant's expense. The cost of the due diligence depended on the level of the work required.