Borrowers - Business Loans without Banks

The Business Loan Network has developed a way of bypassing high street banks allowing individuals, companies, pension funds and portfolio managers to make secured loans directly to companies - i.e. loans without banks.

As banks try to recover from the Credit Crunch, the chances are you are not getting the loan funding you might expect to develop your business. You may find an unwillingness to lend, requests for increased security, higher rates of interest and increased fees. The days when the bank managers had their own credit limits and knew their customers well have long gone so you might also find your bank does not understand your business or the benefits of trying to grow it.

The Business Loan Network is a serious alternative to high street banks, providing loans on attractive terms from serious private investors who are more likely to understand your business. They bid in an on-line auction to join a syndicate and lend to your company. At the end of a successful auction the bids with the lowest interest rates are selected and you get an offer based on the average rate. If that is attractive you accept the deal and we prepare and complete the paperwork.

Sponsors ensure Quality

The Business Loan Network will succeed in providing a serious alternative to banks if it attracts a reputation for high quality and low risk. This is because our capacity to make loans depends upon the number of active Lenders who are attracted by the deals on offer.

We maintain quality by only allowing a loan to be auctioned if it has the support of one of our accredited “Sponsors” who are traditional ‘relationship’ bank mangers. The Sponsor works on behalf of the borrower to prepare an information pack which will be made available to potential lenders. Our Sponsors are experienced bank managers so they can also advise on the security to be offered.

The Sponsor’s report helps Lenders to assess the risks involved and since the auction outcome depends upon how many bids are attracted, a well written report is likely to result in a lower interest rate.
Remember that the Sponsor works for the Borrower and does not give the Lender any investment advice; they need to establish their own reputation for quality and will be very selective about the deals they back. A Sponsor with a good reputation will attract a following of Lenders and achieve a higher success rate.

Loans available

  • Secured loans from £50k to £3m
  • From a few months to 5 years or more
  • Interest rates either fixed or linked to Base Rate
  • Fixed monthly installments of interest and capital with no capital repayment holiday
  • No penalties for early repayments

The Costs

There is a ‘listing fee’ of £450 for the opportunity to be featured on Thincats.com. If a loan is made the Sponsor will normally charge the Borrower a ‘success’ fee of between 2-6% of the loan amount.

Following a successful auction you will be offered the weighted average interest rate plus 0.5% which goes to the BLN Sponsor in return for monitoring the loan and an Administration Fee of 1% is payable to BLN.

There are normally no arrangement fees or legal costs unless there are complications associated with the security.

To Summarise...

Loans Without Banks is an ever growing sector of the commercial finance market and one Sterling Capital Reserve have fully utilised for clients.