Fees and Charges

These are the fees and charges that you, the applicant, agree to when applying for a loan with the Business Enterprise Fund.

The information below includes details of the internal charges made by BEF Group in respect of actions and events that may occur during the course of your loan agreement including legal action.

START UP LOANS : PLEASE NOTE THAT NO CHARGES APPLY TO START UP LOANS

• Loan arrangement fee: If your application for a loan is successful you will be charged a Loan arrangement fee of 3.5% of loan amount to contribute toward the costs involved in producing your loan. (Payable prior to drawdown by Cheque or BACS. Subject to a minimum of £50.00). 
• If you repay your loan early, that is before the scheduled end date, you will be charged 3.5% of the settlement figure.

Over payments above 5% of the original amount of capital advanced will be subject to a 3.5% charge against the payment made. (In any one year overpayments of up to 5% of capital advanced are permitted)

If your loan is to be supported by a form of security arranged by BEF then a charge will be applied for the work of arranging that security. You will be informed during the on-boarding process and via any Indicative Offers made, whether any item of security will be asked for as a condition of the decision to lend. 

• Company Debenture: £275 (per item)
• 2nd charge on land: £275 (per item)
• Chattel Mortgage: £275 (per item)
• First Charge/ Property Purchase: £375

If more than 3 hours work is done by our legal and admin teams in arranging the security then the fixed fee will no longer apply and you will be notified and charged at the appropriate hourly rate below:

The following rates will apply for work done by BEF’s in-house team. Work will be recorded in time segments of 20 minutes and charged to the loan account.

• Qualified Lawyer: £250 per hour
• Management Staff: £180 per hour
• Administration Staff: £80 per hour

• Variation to Loan Agreement: £25
• Default Notice: £25
• Termination Letter: £25

Any legal costs and expenses reasonably incurred by BEF in respect of a loan agreement properly entered into will normally be passed onto the Client. Except where such costs and expenses result from the Fund’s own negligent acts or omissions.