Cumbria Community Asset & Reinvestment Trust Ltd
Terms and Conditions of Business
- Loans from Cumbria Community Asset & Reinvestment Trust Ltd (CCART) trading as Enterprise Answers (EA) 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 EA can offer “top-up” finance. Loans are available from £5,000 up to £100,000 to start or expand a business.
- Terms of up to 10 years are available. A capital repayment holiday may be available during the term of your loan.
Purpose of Loan
If a Loan is offered, it is on the condition that the money will be invested in the nominated business as proposed and/or specified during your application. 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. EA will use every facility available to pursue repayment of the Loan. The Loan cannot be used to fund past debts unless approved of by EA.
- 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.
- A Business Lending Manager will be appointed to liaise in the Loan Application process and there may be a charge for any work undertaken as a result of your Application whether successful or not. If your Application is unsuccessful or withdrawn, and EA has undertaken such work, you hereby agree to pay the Fund for any reasonable costs incurred.
- The Business Lending Manager will present the business case to the lending panel.
- Applicants will be informed of the decision afterwards and these decisions are final with no right of appeal
Fees and Charges
- 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 2% of the drawdown amount in the loan agreement (subject to a minimum charge of £250) plus any additional charges made for the arrangement of security under the loan agreement.
- The Monitoring Fee is the amount you must pay towards the cost of evaluating the information we request to assess the financial performance of your business and our time in attending your business. The fee is calculated at 1% of the original loan amount per annum, payable quarterly (subject to a minimum fee of £50 per quarter), by Standing Order.
- Repayments are made on a monthly basis by Standing Order.
- Security may be required for larger loans and in many cases guarantees are necessary. Where there is insufficient security available EA may also consider the use of the Enterprise Finance Guarantee Scheme (EFG); this is at the sole discretion of EA. (Please see below for details of the charges made for arranging items of security.)
Legal and Admin Fees
- You must pay all reasonable costs and expenses incurred by EA 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 EA 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 EA or its agents after the loan agreement has commenced and not caused by our own negligence.
- In the event of non-payment, EA may use a debt recovery agent or 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 Court judgement is obtained EA may use enforcement officers or other lawful means to enforce the judgment against you. Any costs incurred by EA 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.
- In the same way, interest may be applied at the statutory rate to any outstanding balances after judgement has been obtained.
- The table below provides details of the charges made by EA in respect of actions and events that may occur during the course of your loan agreement including legal action.
|Items of SecurityCompany DebentureLegal charge on property/landPersonal Guarantee & Indemnity||£50£475£0|
|DISBURSEMENTSAny legal costs and expenses reasonably incurred by EA 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|
- In the case of all loans provided by EA, the Borrower is required and agrees to provide EA, as a minimum by way of financial information, with a copy of their full annual business accounts each year.
- In addition, the Borrower agrees to provide EA promptly with such financial or other information as EA may from time to time reasonably request to enable EA to understand and assess the financial position and performance of the Borrower’s business
- You will be subject to regular visits from EA staff and there are stringent requirements for the provision of information during the Term of the Loan. These include access to bank statements and the provision of management accounts, to a satisfactory standard on an annual basis.
Data Protection and Disclosure Declarations
- Upon acceptance of Terms & Conditions, you agree to Cumbria Community Asset & Reinvestment Trust Limited completing a credit check on you and providing your information to any organisation/individual associated with the provision of the funding requested. If you do not wish any of your details to be passed onto a third party you should not accept the Terms & Conditions.
- By accepting of Terms & Conditions, you are giving your permission to EA, and the UK 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
- By accepting the Terms & Conditions, you are acknowledge 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 accepting the Terms & Conditions, you are giving your permission to EA to approach your bankers and/advisors for clarification should the need arise.
- By accepting theTerms & 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 EA then you may be guilty of a criminal offence.
EA’s policy is to pursue prosecutions in such situations vigorously.