You will no doubt be aware that there are several peer-to-peer commercial lenders in existence here in the United Kingdom with this type of lending scheme coming into prominence in recent years. With the difficulty that many businesses are currently facing in obtaining finance from the main high street banks, peer-to-peer lending schemes should be welcomed with open arms as they provide greater competition that can only be good for customers.
Choice Loans, as an independent broker, are at the forefront of various types of lending scheme with peer-to-peer commercial lending being one of them. We have undertaken a number of reviews of such lenders and trust that you find the following Funding Knight review beneficial.
Funding Knight was created in 2011 and is owned by both a number of private investors as well as some of the management team. Their lenders are individuals who are seeking a better return on their funds that they would normally expect to receive from a typical bank or building society savings account.
Who do Funding Knight lend to?
They tend to lend to small to medium size businesses that are well established with at least two years trading. They must be UK based, limited companies or LLPs and maintain a bank account in the UK.
How much can you borrow?
Unsecured loans of between £25,000 to £100,000 are available repayable over 6 months to 3 years although they are very flexible so if you required a repayment term of 13 months it would be considered as would repayment holidays.
Purpose of Loan
Loans are available for most commercial purposes such as purchasing plant and machinery, premises and refinancing.
Interest rate and charges
The interest rates vary between 6% to 11% per annum plus fees with the marketplace setting the rate. An application fee of £250 is payable that will be refunded if your application is not successful but deducted from the following arrangement fee if your loan is set up. An arrangement fee is payable once the loan is put in place of 2.5 % of the amount of the loan for a period up to 1 year, 3% for a period of 1 to 2 years and 3.5% for a period of 2 to 3 years. A 1% repayment fee is added to every repayment amount.
With your application you will need to provide 2 years accounts that have been submitted to Companies House, up to date management accounts covering a period to within 3 months of applying for the loan, a projected cash flow forecast covering 12 months from the date of the application for the loan.
Any county court judgements (CCJs) registered against the business owners or the business will be taken into account in the decision making process.
Funding Knight review the application through their credit committee who decide whether it warrants being put before their panel of lenders who decide if they are prepared to advance the funds.
At Choice Loans we work not just with Funding Knight but all the major peer-to-peer lenders. If you would like us to review your borrowing requirement to see if it is suitable for a peer-to-peer loan then please either call us on 0845 1260350 or complete our Commercial Loan enquiry form here. We do not charge any fees for our services.