Borrowers
Upfront fees*
Arrangement fee - up to 3% including an underwriting fee if applicable
(plus VAT where applicable)
Introducer/Partner fee – as agreed directly with the
Introducer/Partner.
Legal fees - based upon the complexity of the transaction.
Ongoing fees
The agreed annual rate may include an ongoing platform fee (max 2% where applicable) and underwriter’s fee (max 0.5% where applicable). These fees vary according to the risk profile and will be agreed with the borrower on a case by case basis.
Default and recovery fees
Default Administration Charge Fee
3% pa based upon the principal of the loan outstanding at the date of default.
The Default Administration Charge is charged from the date the Borrower goes into default or a default event occurs and continues until such time as the default is remedied or the Borrower enters a formal insolvency process.
Recovery Administration Charge
Recovery Administration Charge of up to 15% of the principal amount of the loan outstanding will be charged to the Borrower, in the event of the Borrower entering into a formal insolvency process.
Lender Fee
Lender Fee equivalent to 1% reduction in the annualised rate of interest received based on an illustrative loan earning 10% interest pa gross of the Lender Fee, resulting in interest paid of 9% net of the fee (please note that your capital is at risk and other fees may be applicable and so the actual return on your lending may be lower than the interest applicable to the loan).
The Lender Fee is inclusive of VAT.
The Lender Fee will vary with the interest rate applicable to a loan part, so loans with lower interest rates will attract lower Lender Fees and vice versa (see notes below). The fee is only payable when interest is actually paid to an investor.
Notes
The Lender Fee is calculated as 10% of interest paid to new investors.
For an illustrative loan earning 10% interest gross, the Lender Fee
represents a 1% reduction in the interest received by new investors. If the
interest earnt on a loan part is higher or lower than the illustrative rate
of 10%, the Lender Fee will vary accordingly. So, if a loan earns 8% gross
interest, the Lender Fee will represent a 0.8% reduction in the interest
payment. If a loan earns 12% gross interest, the Lender Fee will represent a
1.2% reduction in the interest payment.
The Lender Fee is collected by applying a fee at the same time as an interest
payment is paid to an investor. The fee is shown separately to the interest
payment. For example, a gross interest payment of 8% pa would also have a
Lender Fee equivalent to a 0.8% reduction applied separately, resulting in
net interest received of 7.2%.
Diversified Loan Portfolio (DLP)
We will charge an administration fee of 1.0% per annum on the balance of the outstanding DLP. This fee will be deducted monthly from the lender’s cash receipts on the DLP and is in addition to the standard lender fee.
Recovery Fees
Scaling fee dependent on the recovery:
Recovery fees of up to 15% will be charged to the Borrower, in the event of the
Borrower entering into a formal insolvency process. Where there are insufficient
realizations from the borrower or guarantors, to repay the outstanding loan amount
together with accrued interest and charges in full, a scale charge will be applied
to lenders based on the recovery made, as set out in the Platform use and Lending
Terms and Conditions:
- Recovery of up to 50% of the outstanding amount – 5%
- Recovery of 50.01% – 75% of the outstanding amount – 7.5%
- Recovery of 75.01% – 99.9% of the outstanding amount – 10%
If the loan application is not accepted, the amount deposited as an upfront fee in the escrow account will be returned to the required borrower and the contract will be deleted.