Terms & Conditions

These are the terms that you, the applicant, agree to when applying for a loan with the Business Enterprise Fund

Business Enterprise Fund is the trading name of Business & Enterprise Finance Limited, part of the BEF Group. Registered Office: Devere House, Vicar Lane, Little Germany, Bradford, BD1 5AH, Company Number 1792109 The BEF Group comprises Business & Enterprise Finance (NE) Ltd (Co no. 9360892), Goole Development Trust (Co no. 3383475) and BEF-NPIF LTD (Co No. 10638308) . These Terms and Conditions and the information therein apply to all BEF Group companies and associated funding providers. Telephone Number: 0800 080 3145.

1)  Background

a)    Loans from Business & Enterprise Finance Limited (BEF) are available to individuals and companies who have been refused other forms of business finance from mainstream providers such as banks. Where an applicant has been offered insufficient finance from other sources the Fund can offer “top-up” finance Loans are available from £500 up to £150,000 to start or expand a business.

b)    Terms of up to 10 years are available. A capital repayment holiday of up to six months may be available with the prior agreement of the Credit Committee/Fund Management.

2)  Purpose of Loan

a)    If a Loan is offered it is on the condition that the money will be invested in the nominated business as proposed in the Business Plan & Application Form. However, in the case of consumer credit loan agreements, if you accept the Loan it will be a personal debt and not dischargeable by winding up your proposed/existing business. BEF will use every facility available to pursue repayment of the Loan.

3) Application Process

a)    The Applicant(s) must demonstrate the viability of the business proposal by the provision of a “robust” business plan. The Applicant(s) must demonstrate a clear understanding of the business planning process (including how to prepare financial forecasts) or undertake training to obtain these skills.

b)    An Investment Manager will be appointed to assist in the business planning process and there may be a charge for the preparation of your Application whether successful or not. If your Application is unsuccessful or withdrawn, and the Fund has provided assistance to you in the preparation of that Application, you hereby agree to pay the Fund for any reasonable costs incurred.

c)     In the case of an online application receiving automatic approval on condition, the Investment Manager may present the business case to the credit committee for further evaluation.

d)    Applicants will be informed of the decision afterwards and these decisions are final with no right of appeal.

4)  Fees and Charges

Arrangement Fee

a)     The Arrangement Fee is the amount you must pay for the cost of the preparation and administration of your loan application and loan agreement. The fee is calculated as 3.5% of the drawdown amount in the loan agreement (subject to a minimum charge of £50) plus any additional charges made for the arrangement of security under the loan agreement. There is no arrangement fee for loans approved under the Start-Up Loans program.

Repayments

a)     Repayments are made on a monthly basis by Direct Debit. There is a charge for late payment of an instalment by the due date unless this is approved in advance of the due date of the direct debit payment.

Security

a)    Asset based security is required for loans over £50,000 and in all cases personal guarantees are necessary.

Lender Protection

a)    Government Guarantee: Where there is not sufficient security available the Fund may also consider the use of the Enterprise Finance Guarantee Scheme (EFG). This scheme operates for the protection of the lender and not the borrower; and is at the sole discretion of the Fund. An additional fee payable on a quarterly basis will need to be paid for this facility. This fee is payable directly to the Debt of Business Innovation and Skills via their administrative partner. (Please see below for details of the charges made for arranging items of security.)

Financial Recovery and Admin Fees

a)    You must pay all reasonable costs and expenses incurred by BEF as a result of you defaulting on or breaching the loan agreement or your loan agreement being terminated for any reason or any action by you that results in BEF taking steps to recover money from you or rearrange the collection of repayments from you, including any restructuring or variation of the loan agreement or any additional work whatsoever carried out by BEF or its agents after the loan agreement has commenced and not caused by our own negligence.

b)    In the event of non-payment, BEF may use a debt recovery agent or our lawyers to recover any monies owed by you and you will be required to pay the full amount of any fees charged, costs, expenses or disbursements incurred as a result of your non-payment.

c)    In the event that Court judgement is obtained BEF may use enforcement officers or other lawful means to enforce the judgment against you. Any costs incurred by BEF after a court judgement has been obtained against you as a result of breaking this agreement will be added to your total judgement debt so that you may have to pay us both the amount of the judgement and our further costs and expenses until you have paid these in full. This means that even if you pay off the whole amount of the judgement you may still have a further sum to pay.

d)    In the same way, interest may be applied at the statutory rate to any outstanding balances after judgement has been obtained.

e)    The table below provides details of the charges made by BEF in respect of actions and events that may occur during the course of your loan agreement including legal action.

FIXED FEES

Variation to Loan Agreement: £30

Default Notice: £25

Termination Letter: £25


Items of Security

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 3hrs work is done by our legal and admin teams in arranging the security then the fixed fee will no longer apply, you will be notified and charged at the appropriate hourly rate below.


EFG Quarterly Fee: 2% of outstanding capital


HOURLY RATES

The following rates will apply for work done by BEF’s in-house teams relevant. Work will be time recorded and charged to the loan account.

Qualified Lawyer: £150

Trainee Lawyer  & Paralegals: £100

Administration Staff£60


DISBURSEMENTS

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.


5)  Performance Monitoring


The Borrower agrees to provide BEF promptly with such financial or other information as BEF may from time to time reasonably request to enable BEF to understand and assess the financial position and performance of the Borrower’s business. These include access to bank statements and the provision of management accounts to a satisfactory standard.

6)  Data Protection and Disclosure Declarations

a)    On agreeing to the Acceptance of Terms & Conditions you agree to Business & Enterprise Finance Limited, using information in the ways detailed in our Privacy Notice, which includes completing a credit check on you and providing your information to any organisation/individual associated with the provision of the funding requested or that BEF considers relevant to a legitimate purpose or interest identified with the funding.

b)    Your information may also be used for direct marketing purposes. If you do not wish any of your details to be used in this way or passed onto a third party you must not agree to this document.

c)    By agreeing to the Acceptance of Terms & Conditions you are giving your permission to BEF, and the Government if the Application is processed under EFG procedures, to:

i.      make any enquiries about your Loan Application;

ii.     take up references about you and your business;

iii.    give information to each other about you and your business; and

iv.    give information to any official involved in running or monitoring the EFG scheme

d)    By agreeing to the Acceptance of Terms & Conditions you are accepting that the information you give may be used for the purposes of preventing and detecting crime and that any misleading statements (whether deliberate or accidental) given at any stage during the application process may render the Application invalid and the Applicant(s) may be liable to return any money already paid out.

e)    By agreeing to the Acceptance of Terms & Conditions you are giving your permission to BEF to approach your bankers and/advisors for clarification should the need arise.

f)    By agreeing to the Acceptance of Terms & Conditions you agree to be bound by these terms and conditions

Note: By misleading or giving false information in the process of this application you may be guilty of a criminal offence. If you are in the process of or intending to begin insolvency proceedings, such as an Individual Voluntary Arrangement (IVA) or Bankruptcy and do not disclose this fact at this stage then you may also be guilty of a criminal offence. If you are personally insolvent and it is reasonable to assume from your circumstances that this is the case; if you do not disclose this to BEF then you may be guilty of a criminal offence. BEF’s policy is to pursue prosecutions in such situations vigorously.

I hereby agree to be bound by the Terms & Conditions of Business & Enterprise Finance Limited.


WE STRONGLY RECOMMEND YOU SEEK LEGAL ADVICE BEFORE SIGNING OR CONFIRMING ACCEPTANCE OF THESE TERMS AND CONDITIONS