Borrower FAQs

For Customer Service, please contact us on customerservices@folk2folk.com

How it works

• Who can apply for a loan?

  Provided the loan is required for business purposes and security in the form of property or land is available then you can apply for a loan at FOLK2FOLK.

• What are the minimum and maximum loan amounts?

  There is no maximum loan amount (as long as sufficient funds are available at that time) but minimum loan size is £100,000.

• Can my business have more than one loan?

  Yes. Provided there is enough security and the propositions otherwise satisfy our criteria.

• What is the duration of FOLK2FOLK’s loans?

  Loan terms are from 6 months to 5 years.

• What do I do if I want to proceed?

  Call us, fill out a Borrower Enquiry Form or drop into one of our branches.

• Can you give me an indication of whether an application will be successful?

  Yes. We can often give an indication of whether or not a loan application is likely to be successful.

• Will the Investors know my name?

  Yes. But only after you have signed the offer letter. If there is a Investor you would prefer not to be included in the loan then we will look to replace them, as long as we are notified in reasonable time prior to completion of the loan.

For Customer Service, please contact us on customerservices@folk2folk.com

Fees and interest rate

• What happens if I can’t pay one month?

  Most importantly, you should let us know as soon as you think this may happen.

  The Reduced Interest Rate will no longer be payable and you will instead be required to pay the Interest Rate in accordance with your Loan Terms & Conditions.

  We will contact you to try and make arrangements for you to pay your Investors. If you are 4 working days late, then your account would be regarded as overdue.  If the payment is 7 working days late, you will be charged a collection fee being 15% of the overdue amount. We will hand the matter to our Solicitors at 28 days overdue to seek recovery of the outstanding sums and their costs will be added to the loan.

• What is the cost of a FOLK2FOLK business loan?

  We’re transparent about how we process our secured loans and how much they cost. The cost of a FOLK2FOLK business loan is made up of three components:

  • Monthly interest payments to your Investors.
  • Initial and Annual Arrangement Fees to FOLK2FOLK for arranging the secured business loan over its lifetime.
  • Third party fees and disbursements such as legal fees and land registry fees.

  To see a full overview of which business loan costs are applicable to your secured loan application, refer to the fee table in our Terms & Conditions

For Customer Service, please contact us on customerservices@folk2folk.com

About your Investors

• What information is made available to Investors?

  Investors are informed of the nature of the security, the purpose of the loan and the location.  Investors are provided with a Loan Summary so they understand the purpose of the loan and the security that stands behind it.

• What if an Investor wants to pull out of my loan?

  When Investors invest in a FOLK2FOLK loan they do so on the understanding that their money is committed to that loan until the Borrower chooses to repay.  However, if they wish to access their funds sooner then they may offer their investment in your loan for sale to other approved FOLK2FOLK Investors via our secondary market.

• What happens in the event of a Investor's death?

  In the event of a Investor’s death, the benefit of the loan will fall into the Investor’s estate and the executors can request FOLK2FOLK to put the loan in the name of the beneficiaries at a small cost. FOLK2FOLK will be able to do this on the sight of the grant of probate.

For Customer Service, please contact us on customerservices@folk2folk.com

Security

• What types of property does FOLK2FOLK accept as security?

  We would accept most freehold property as security, provided that it is not the home of the Borrower. We only lend up to a maximum of 60% of the Market Value of the property.

  By ‘home’ we mean a property, at least 40% of which is used, or is intended to be used, as or in connection with a dwelling, by the Borrower or related persons (the Borrower’s spouse or civil partner; a person (whether or not of the opposite sex) whose relationship with the Borrower has the characteristic of the relationship between husband and wife; or the Borrower’s parent, brother, sister, child, grandparent or grandchild). Dwelling includes second homes and vacant dwellings.

For Customer Service, please contact us on customerservices@folk2folk.com

Your account

• How do I change my contact details?

  Please contact us to advise us of the change by email at customerservices@FOLK2FOLK.com

• I wish to make a complaint, what are the next steps?

  We have a complaints policy which is located on our website and the first step is usually to contact our CEO. We are regulated by the Financial Conduct Authority (FRN 720867) and we have to adhere any requirements of the FCA concerning complaints from time to time.