1. What are the minimum loan application criteria?
- Trading for more than 2 years with annual sales revenues in excess of £500,000
- LTD or LLP registered at Companies House with filed financial accounts
- No CCJs within the past 3 years
- No Director CCJs or business failures within the past 3 years
- LTD, LLP or SPV
- Established business
- Experienced management team
- Good credit rating and security
2. My business is a start-up. Can I apply for a loan?
No, we are only able to provide loans to businesses that meet the minimum criteria, have revenues and the ability to repay the loan
3. Can I apply for a personal loan?
No, we provide loans to established businesses only
4. What information will I need to enter to apply for a loan?
You will need to provide some background information, your Companies House registration number and the following financial data:
- Sales revenues: actual for last full year and forecast for the loan period
- Operating Profit: actual for the last full year and forecast for the loan period
- Total current debt/loans to include overdraft, existing loans, HP and lease arrangements
5. How long will the loan application process take?
Qualifying applications will receive an immediate provisional offer online. This offer will be subject to due diligence and a signed loan agreement.
6. What happens if my application is declined?
We will inform you immediately if your application has not been successful. This will be due to a number of factors. It does not prevent you applying for a loan in the future if your business circumstances have changed or improved. Your credit rating will not be affected if we decline your application.
7. How much can my company borrow?
We offer loans from £50,000 to £500,000 to suit your business needs and your ability to repay. The maximum for unsecured loans is £250,000, and the maximum for secured loans is £500,000.
8. Over what period of time can I borrow the funds?
We offer unsecured loans from 3 months to 12 months and secured loans from 3 months to 24 months.
9. How is the loan repaid?
The loan is repaid, via our direct debit portal, over the term required on a monthly basis, starting 30 days after the funds are transferred. Typically this will be a calculated on a flat fee basis as: (Loan amount + interest) / number of months
10. What are the costs?
It’s free and secure to make a business loan application. Interest rates are competitive, depending on status. Arrangement fees (and monitoring fees for secured loans) are deducted from the loan amount on drawdown. There is no cost or commitment until the loan documentation is signed.
11. Can I repay the loan early?
Yes. There are no early redemption penalties, subject to a minimum term and one month's notice.
12. Do the Directors need to provide personal guarantees?
Yes, for unsecured loans the Directors are required to sign Personal Guarantees. This means they undertake to pay personally any outstanding loan amounts (capital and interest, including penalty interest and collection costs) that the company is unable to pay. This is included in the loan documentation.
13. Does the business need to provide any form of security?
For unsecured loans, no company security is required, although YesGrowth reserves the right to request additional security or cross guarantees depending on the specific circumstances of the loan or the borrower. These would be agreed beforehand and form part of the loan documentation. Security is required for secured loans.
14. What happens in the due diligence phase?
Once you agree the provisional offer you will need to complete and submit the due diligence questionnaire with associated information. This requires more detailed information on the business and also the Directors. If the loan amount is significant, or if there are special circumstances, our credit team will request a telephone interview or face to face meeting prior to making a loan decision. You can view the due diligence questionnaire here.
15. How quickly will I receive the funds?
Once you have accepted the provisional offer and successfully completed the due diligence phase we will request client identity information ("Know Your Client") and send you the loan documentation for signature. Upon receipt of the signed documentation the loan amount, less the arrangement fee, will be transferred to your company bank account. Loan funds are typically available within one week from the provisional offer.Security is required for secured loans.
16. Where are funds sent?
The loan amount, less the arrangement fee, is transmitted directly to your company bank account.
17. What is in the loan agreement?
We have standard legal documents that are customised for each loan and borrower. You can review the loan documents here
18. How are monthly payments processed?
Monthly payments are made electronically from your company bank account either via our direct debit portal or via standing order.
19. What information is required during the repayment period?
The loan agreement specifies the information we will require you to send us. Typically this is monthly sales, profit and cash information.
20. What happens if my company is unable to make the monthly repayment?
We monitor monthly payments closely and initially will wish to check if the problem is simply due to a failure in the payment process. In the event that funds are not available we will be in contact with you promptly to understand the circumstances and discuss how best to resolve the situation. Additional costs will be incurred at this point. The loan agreement contains provisions to cover this situation.