Loan Terms and Conditions (cont)
Appraisal Fee
In addition, we make a single charge to borrowers - a fee for the work involved in appraising the application. The amount of the fee ranges between 1% and 2% of the amount lent (minimum £250), depending on the size of the loan and the amount of work involved. The fee contributes to our costs and enables us to provide support before and after the loan has been approved. Only successful applicants pay the fee. Usually the fee is deducted when the loan is released.
Other Costs
Any fees incurred in dealing with legal issues and registering legal charges will be passed on to the borrower.
Security
We will not normally ask for personal guarantees on loans from the Social Enterprise Fund, but may require them for the ABLE Fund. We will look to secure our loan against any assets of the organisation where possible. Lack of sufficient security will not necessarily prevent the approval of a loan.
Monitoring
It is a condition of all loans that borrowers co-operate in our regular monitoring, have proper financial systems, and provide quarterly management accounts and annual audited accounts.