Frequently asked questions
How much can I borrow?
Loans of up to £500K are available but during our discussions with you we will make an offer as to how much we will lend and for what purposes, which you can either accept or decline.
What is the criteria?
We would expect there to be sufficient assets in the business, including debtors, so that we can take a debenture over all of the business assets, excluding, those that are specifically pledged to another lender. We ask that you are committed to the turn-around of the business and realistic about what and when we may all have to accept that it isn’t working. All of this will be set out in the offer and the contract you will be asked to sign. We may also, but will not always, ask for a personal guarantee.
Do I have to give a personal guarantee?
Not always but usually we will ask for a PG.
What if I don’t have any assets?
It is unlikely that we will lend if there are no assets. However it is often mis-understood as to exactly what constitutes an asset. Talk to us, let us assess the situation and we will be frank and honest about the likelihood of us lending your company money.
What will it cost?
We will not ask for any application fees. There will be setup and administration charges, to include due diligence checks, that will be added to the loan. The interest rate will reflect the risk we perceive in funding your business. All of these charges are declared on the offer we will send you after our first meeting (subject to due diligence and verifications). However we must be clear, this is crisis funding and a significant risk to us and therefore the charges and interest rates reflect this.
Where does the money come from?
BRF has raised funds form private individuals who will be committed to the period agreed with you. It is up to BRF who we lend to and for what period. As long as the lending Ts & Cs continue to be met you should not be concerned that funding will be withdrawn although we will, of course, reserve the right to do so should there be a significant and material change in the circumstances.
How short term is it?
Loans area available for up to six months. This is short term lending to see you through to the point where you can repay or replace our loan. We are strict about this however in exceptional circumstances loans may be made for a longer period.
Do we pay monthly interest and repayments?
Both rolled up interest and monthly repayments are available. Again, the lending is tailored to the needs of the company, which is assessed at the outset. There seems little or no point in us lending working capital just so that you can pay us back so more often the loan will have a single lump sum repayment at the end of the term.
What happens if we cannot repay the loan?
Again this will be discussed in detail at the outset of the loan. We reserve the right to undertake any and all remedies available to us should you be unable to repay the loan at the agreed time. However, if this is likely to happen you should talk to us first. We will look at all the options available to keep the company going and would hope to be able to agree a mutually acceptable way forward.
Can I repay early?
Of course and the interest charged will be only for the period that you have borrowed the money.