BEF Group Comprises of:
Business & Enterprise Finance Ltd t/a Business Enterprise Fund (Co no. 1792109); Business & Enterprise Finance (NE) Ltd t/a BEF (North East) (Co no. 09360892); Goole Development Trust (Co no. 3383475); BEF BSC Ltd (Co No. 11609382) and BEF-NPIF LTD (Co No. 10638308) as General Partner of the NPIF YHTV Microfinance LP.
Registered Office: Devere House, Vicar Lane, Little Germany, Bradford, BD1 5AH
These Terms of Engagement and the information therein apply to all BEF Group companies and associated funding providers.
Telephone Number: 0800 080 3145.
1) Who We Lend to:
- Limited Companies, Sole Traders, Partnerships.
- 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. If the borrower is a limited company, the loan will be to the limited company. If the borrower is a sole trader / unregistered partnership the loan will be a personal loan for business purposes.
- The application process is automated and approval will be based on a credit scoring system. You will be contacted within 48 hours from the submission of your initial application.
- An Investment Manager will be appointed to support you in the application process but cannot provide financial advice or complete the financial documentation required for the application.
- If you decide not to proceed once the loan has been approved and BEF Group has provided support and / or assistance to you in the preparation of that Application, we reserve the right to charge you up to 50% of the application fee applicable had the loan proceeded.
- Applicants will be informed of the decision by the appointed Investment Manager and these decisions are final with no right of appeal.
3) Arrangement Fee
- 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 or 4% for 12-month Short Term loans, plus any additional charges made for the arrangement of security under the loan agreement. The Arrangement Fee must be paid prior to your loan being drawn-down, if for any reason it is not the fee may be claimed via your direct debit payments. If you do not draw down the loan funds following the preparation and approval of your loan application you will still be charged and must pay the Arrangement fee and we reserve the right to take legal action to recover the fee from you. (There is no arrangement fee for loans approved under the Start-Up Loans program.)
- Personal Guarantees – are required on all loans.
- Enterprise Finance Guarantee – Additional security may be required in the form of EFG. EFG is provided by the British Business Bank and provides security to the Lender (Not the Borrower) in the event of default. A fee of 2% of capital outstanding per annum payable on a quarterly basis will be charged and paid by Direct Debit to the Scheme Administrator. The EFG scheme is independent of BEF Group.
- Tangible Security - We reserve the right to request tangible security as part of our conditions for lending.
You are strongly advised to obtain independent legal advice on all securities required
- Repayments are made on a monthly basis by Direct Debit.
- There is a charge of £25.00 for late payment if an instalment is not paid by the due date unless this has been agreed in advance of the due date
6) Performance Monitoring
- The Borrower agrees to provide BEF Group promptly with such financial or other information as BEF Group may from time to time reasonably request to enable BEF Group 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.
7) Financial Recovery and Admin Fees
- You must pay all reasonable costs and expenses incurred by BEF Group as a result of you defaulting on your repayments or breaching the loan agreement. In the event of non-payment, BEF Group may use a debt recovery agent, our in-house legal team / external solicitors 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.
- In the event that a Court judgment is obtained any costs incurred by BEF Group after obtaining judgment may be added to your total judgment debt so that you may have to pay us both the amount of the judgment 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 judgment you may still have a further sum to pay. In the same way, interest may be applied at the statutory rate to any outstanding balances after judgment has been obtained.
BEF Group will pursue all avenues available to secure repayment of the loan in the event of default or business failure
8) Fees and Charges
The information below provides 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.
Loan arrangement fee: 3.5% of loan amount, payable prior to drawdown by Cheque or BACS. (subject to a minimum of £50.00).
4% of loan amount for 12-month Short Term loans.
Early settlement fee: Refer to the Terms and Conditions of your Loan Agreement.
Overpayments: In any one year overpayments are permitted up to 5% of the original mount of capital advanced.
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.
The following rates will apply for work done by BEF’s in-house team. Work will be recorded in time segments of 10 minutes and charged to the loan account.
Qualified Lawyer: £150 per hour
Trainee Lawyer & Paralegals: £100 per hour
Administration Staff: £60 per hour
Enterprise Finance Guarantee: 2% per annum of outstanding capital. Paid via quarterly fee by direct debit to scheme administrators
Variation to Loan Agreement: £30
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.
9) Data Protection and Disclosure Declarations
- On signing the Terms of Engagement you agree to BEF Group completing a credit check on you and providing your information to any organisations/ individual associated with the provision of the funding requested or that BEF Group considers relevant to a legitimate purpose or interest identified with the funding.
- By signing the Terms of Engagement 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.
- By signing the Terms of Engagement you are giving your permission to BEF Group to approach your bankers and/advisors for clarification should the need arise.
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