Business Loan FAQs
Freqently Asked Questions
1. How to contact Finsec?
2. What information does FinSec need to consider a case?
- Amount and purpose of the loan;
- Preferred term for repayment;
- Name of the business or borrowers;
- Details of the borrowers and guarantors (including full name, home address and date of birth) and their acceptance of our use of personal information to allow us to perform personal searches;
- Details of the security property (including the full address and approximate value and amount of any existing mortgages or charges).
Our underwriting team can be reached on 0208 731 3087 or firstname.lastname@example.org to answer any queries but please note we are unable to accept applications direct from individuals or business borrowers, all applications must be received from an authorised introducer.
3. How much do you lend?
We lend up to £250,000 plus any fees requested to be added
4. What sorts of business qualify for a secured business loan?
Any kind of business which is a limited company or a partnership, even if it is a new start, so long as either the directors, partners, shareholders or other stakeholders are willing to enter a personal guarantee secured against their property, or in some cases where the business owns property, use this as security.
5. What kind of security do you accept?
We lend on residential owner occupied or investment property or semi commercial property situated in England and Wales. The guarantor or borrower must be the registered proprietor, in other words the owner, of the property offered as security. Where there is already a first mortgage we can usually lend a second mortgage or even in some cases a third mortgage.
6. Do you offer unsecured loans?
No all loans are secured on property. We can accept residential owner occupied or investment property or semi commercial property situated in England and Wales. Guarantors may be anxious about borrowing against their home but this isn’t necessary as a Finsec business loan can be secured against a buy to let property, second home or a semi commercial or other investment property.
7. Is additional funding available?
Yes, subject to meeting our usual requirements and having maintained the payments to a Finsec loan for 6 months or more we will consider an application for a further advance or an increased loan amount. All applications must be made via an authorised credit broker.
8. What fees are payable?
As the loan is secured on property then a valuation fee will usually be payable to the valuer, your credit broker can confirm what fee is required. There are no valuation or application fees payable directly to Finsec but in some cases a credit broker may charge a fee which if you agree can be included in the loan. We require the Secured Business Loan paperwork to be signed in the presence of your solicitor who will provide independent legal advice and they will charge a fee. You can show them the loan paperwork and ask them what their fee will be. Finsec charge a lenders legal and arrangement fee on completion of your loan. The amount will be shown on your loan paperwork.
If you do not proceed with your loan to completion you will not be required to pay the fee, but you may lose any money you have already paid to a credit broker, valuer or solicitor for work they have already completed.
9. Can I over pay or repay a loan early in full?
Yes, with agreement overpayments can be made to reduce the loan, for Secured Business Loans a charge of 3% of the amount overpaid will be taken and we will notify you of the revised lower monthly payment to ensure the loan finishes on time. There is no charge for overpayment to BTL loans but the regular monthly payment must continue to be maintained. Alternatively, we can provide an early settlement figure to repay the loan in full at any time, the maximum charge for repaying in full is 3 months interest based on the loan balance at the time of repayment. We can tell you what this will be. There is no fee charged. Interest is calculated daily and applied each month and therefore reflects just the period the loan has run and payments already made and not future interest. If the loan is overpaid or repaid in full early there will usually be a significant saving in the overall amount of interest paid compared to maintaining the loan for the full term.
10. What happens if I can’t pay?
If you are experiencing difficulties with your repayment you should contact us as soon as possible so we can identify and agree an arrangement or other form of forbearance.
11. What happens if the security property is sold or transferred?
We will provide you or your solicitor with an early settlement figure so the loan can be repaid on completion of the sale or transfer but it may be possible to transfer our security to another property you own which would allow the loan to continue otherwise unchanged but it is also possible for part repayment at the same time as a transfer of security which would reduce the amount owed and future repayments. In some cases where more than one guarantor or security property was provided when the loan was made a release of one or more may be possible.