Borrowing FAQs
About your Investors
In the event of an Investor’s death, the benefit of the loan will fall into the Investor’s estate, but will otherwise continue uninterupted for the borrower.
When Investors invest in a FOLK2FOLK loan they do so on the understanding that their money is committed to that loan for the full term of the loan. 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. This ensures no disruption for borrowers.
Application
Yes. You may cancel a loan application but please note that we invest a significant amount of time to every loan application and we would therefore expect there to be good reasons for such cancellation. Should an offer letter be signed by you and you later wish to cancel your application then a fee will be payable to cover our abortive costs. You can view our charges here: Borrowing costs
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. You can view our eligibilty criteria here: Who can borrow via FOLK2FOLK
Fees & Charges
Most importantly, you should let us know as soon as you think this may happen.
The Reduced Interest Rate will no longer apply 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.
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.
You can view a full overview of costs here: Borrowing costs
How it works
Yes. Provided there is enough security and the propositions otherwise satisfy our criteria.
Your loan is funded by our community of investors, which comprises of individuals and businesses, who choose which loans to invest in. When you apply for a loan via us, we can’t guarantee your loan will be filled by our investors but we’ll keep you informed throughout the process.
There is no maximum loan amount (as long as sufficient funds are available at that time) but minimum loan size is £100,000.
You can use a FOLK2FOLK loan to start, grow, or diversify your business. You can view loan purposes here: What can I use a busines loan for
Loan terms are from 6 months to 5 years.
Process
Early repayment options may be available — speak to our team to understand the terms.
Security
We would accept most freehold property as security, provided that it is not the principal dwelling of the Borrower. Naturally, we only lend up to a certain percentage of the value of the property (usually 60%) so the value of the property needs to be sufficient for the Borrower’s loan requirements.
Your account
To make a complaint you can visit one of our offices in person or contact us:
In Writing: Complaints, FOLK2FOLK Limited, Number One, Western Road, Launceston PL15 7FJ or
By Email: complaints@folk2folk.com
By Telephone: ask for Customer Service on 01566 773296
Please ensure you provide your contact details including your telephone number, when you raise your complaint. You can view our full complaints policy here: Complaints policy
