Terms & Conditions

Minimum Loan Size

£25,001

Interest rate:

1% - 1.25% above bank base rate (varies depending upon the bank)

Bank fee:

1% usually subject to a maximum of £1,250 . (with exceptions)

Statim fee:

£2000 but may vary commensurate with the work involved in assessing the proposition

Legal costs:

For the completion of the necessary security, the banks charge standard fees. These do vary between banks but are typically £150/200 per security item.

Period:

Maximum term 10 years except for freehold loans where a guarantee is not required, which can be up to 20 years.

Loan Type:

Repayment loans only are allowed. I.e. those where capital and interest is repaid each month. Endowment or Pension backed loans are not permissible where a guarantee is required as they rely upon a bullet repayment at the end of the loan.

Security:

The bank will take security at our request and stipulation.

Amount:

Normally 80% of the project cost. The applicant should introduce 20% of his/her own stake by way of 'free' cash. i.e. savings and not borrowed elsewhere. However, for established customers we will look at the overall gearing of the business, taking into account total borrowings and updated asset value (including goodwill).

Overdraft facility:

Within the auspices of the scheme the bank should provide upon request, an overdraft facility set at the level of 3% of annual sales turnover (ex. Vat). The interest rate will usually be at a maximum rate of 2.25% over base rate.

AAH Payment Terms:

All accounts covered by guarantee must trade on 30 days payment terms. In practice this means payment must be received by the last day of the month following the month in which the purchases were made.

Customer Commitment:

Minimum 70% of purchases should be made via AAH Group Companies.(Including Enterprise and Trident).