Congratulations! You’ve been Preapproved for a Business Cash Advance!

These terms are meant to be read in conjunction with the Business Cash Advance Headline Terms emailed to you – the Headline Terms are subject to satisfactory due diligence checks, and the conclusion of any Conditions Precedent (as outlined in the Headline Terms). When these are in place, we can sign the funding agreements, and fund within 24 hours!

How your cash advance works – an illustrated example

The Advance is the cash advance of £100,000* made to you at signing of our final Agreement and that will be transferred to your bank account at the Funding Date. The Servicing and Administration Fee of £2,500+VAT* is the amount due in consideration for providing services such as ledger management, loan and debt collection services, and the provision of management information. The Principal Amount is the amount you borrow from us under the Agreement including Servicing and Administration Fee.

How early repayment discount works – illustrated example

You would usually borrow £100,000* from us and need to repay us a minimum of £128,750* depending on when you repay the Advance. That is to say, if you repay us in full in the first 6 months, you can save up to £20,600* as an Early Repayment Discount, otherwise, the repayment amount will be the full £149,350*

How repayment works – illustrated example

We won’t charge you interest on your Business Cash Advance, rather, we either (Option 1) take a percentage of your receipts on your bank accounts (e.g., when you get paid by your customers) plus a regular Weekly Repayment or (Option 2) take a Fixed Daily Payment on every working day Monday to Friday.

Option 1 – Weekly Repayment PLUS a percentage of the business receipts

Every Wednesday, we review your bank receipt for the previous week and calculate how much is due in repayment, namely:

• the Weekly Repayment figure of £2,872.12* plus
• 6.2%* of your receipts in the preceding week.

We will share our calculations with you before applying for your weekly payment on, or on the business day immediately after, the Wednesday of the week following.

Option 2 – Fixed Daily Repayment 

In certain circumstances We may offer You a Fixed Daily Repayment Option – in these cases we will take a Fixed Daily Repayment Amount, either by a business debit card payment or by a Direct Deduction from the Business’ Bank Account via direct Bank Link

How early repayment discount is applied – illustrated example

You have the option to repay early and reduce the repayment amount during the first 6 months of the loan. Your discount and reduction in amount to be repaid is then calculated as the pro-rata proportion of the Early Repayment Discount based on the date of the final repayment if during the first 6 months. It is at your discretion entirely whether to repay us early and take advantage of this discount. The Business Cash Advance is deemed to be repaid in full when the Funder has received the Repayment Amount in full (subject to deductions for early repayment if applicable and/or any Additional Fees if applicable), which shall be the Maximum Term of 12 months.

*These figures are for illustrative purposes only – the exact terms are as specified in your Business Cash Advance Headline Terms

What happens in case of missed payments?

If you fail to comply in full with the terms of repayment, it will constitute an Event of Default under our agreement and Default Interest in respect of any Unpaid Amount as well as Additional Fees as set out in the final Agreement.  

Accepting Our Offer

To finalise Your Business Cash Advance, there are a few items as set our here and within your Business Cash Advance Headline Terms that you will need to carefully review and confirm that you agree to, which you will do by signing the Pre-Approval offer and returning it to us as soon as possible.

Data Consent

By providing us with your personal information you consent to Funding Alternative Ltd using and retaining your personal information as is required and according to our General Data Protection Regulation (GDPR) Policy (https://fundingalternative.co.uk/privacy-policy/). You hereby give permission for us to process your personal data in a manner which is consistent with, and reasonably required for the effective performance of any potential agreement between us. Please note that you can withdraw your consent at any time by writing to the Information Officer at privacy@fundingalternative.co.uk.

Credit Searches and Identity Checks

By signing the Pre-Approval offer, You consent that, and authorise Funding Alternative Group Ltd to, from time to time and from the date of signature below until the termination of our agreement:

• contact, request and obtain information from any credit or service provider (or potential credit or service provider) or registered credit bureau relevant to an assessment of your and any of your Directors behaviour, profile, payment patterns, indebtedness, whereabouts, and creditworthiness; and
• furnish information concerning your and any of your Directors behaviour, profile, payment patterns, indebtedness, whereabouts, and creditworthiness to any registered credit bureau or to any credit or service provider (or potential credit or service provider) seeking a trade reference regarding Your dealings with us.

You consent Funding Alternative will undertake a search with Credit Bureaus for the purposes of verifying the identity of the relevant individuals. To do so a Credit Bureau may check the details supplied against any particulars on any database (public or otherwise) to which they have access. They may also use my details in the future to assist other companies for verification purposes. A record of the search will be retained. The personal information we have collected from you will be shared with fraud prevention agencies who will use it to prevent fraud and money-laundering and to verify your identity. If fraud is detected, you could be refused certain services, finance, or employment. Further details of how your information will be used by us and these fraud prevention agencies, and your data protection rights, can be found in our privacy policy.

Due Diligence, Exclusivity and Non-Disclosure

Upon signing of this Pre-Approval letter, you undertake to apply your best endeavour to provide us with the necessary and requested information to complete Our due diligence in a timely manner. You shall not solicit, initiate or continue any discussions and exchange of information about your business with other potential lenders or third-party capital providers. You shall grant Us exclusivity and allow us to carry out our due diligence to finalise the terms of a potential loan from Funding Alternative Ltd until such a time when both parties agree to either proceed with the proposed loan or not pursue any further discussions. You undertake to keep the existence and content of our discussion and the terms of this Pre-Approval Offer confidential and not to use any information provided by us for any purpose other than deciding if any subsequent offer from us is acceptable and adequate for you. Nothing shall prevent you from making any disclosure of relevant information required by law or by any competent authority. You shall, upon request by us, destroy or return any information provided by us pertaining to our Pre-Approval Offer.