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Investors. Don't invest unless you're prepared to lose money. Take 2 mins to learn more.

How it works

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

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.


  • 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.

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