Secured Business Asset Finance Options
We offer secured unregulated hire agreements, we do NOT offer loans and do NOT offer regulated consumer agreements.
At Bluerock Secured Finance, our secured asset finance division was founded on traditional values and ideas. Today, we maintain this forward looking entrepreneurial approach – helping people obtain the asset finance solution they need to increase production, stability and maximise profitability.
We understand that this is a fast changing world and that many of the “off the peg” bank financial products and business loans are now dated, which is why our dynamic team offer asset finance and refinance products for your business or if needed we can create a bespoke refinance product for just you.
We do NOT offer business loans. We offer secured unregulated asset refinance and asset finance agreements. The agreement will need to be supported by personal guarantees and legal charges against personal property of any guarantor or other individual willing to support your business by providing security and as explained below.
If your business accepts any offer of finance we make it will usually be required to provide the details of third parties who are officers of and actively involved in the business, willing to provide personal and/or corporate guarantee(s) to support the finance agreement .In addition, dependent on the type of agreement and amount financed and the credit status, we will require a legal charge over your residential property and/or business property and/or any guarantor’s residential property. Any such charge cannot be removed until the agreement is settled and while it exists you may be unable to remortgage.
A Security Release Fee is payable equivalent to 10% of the price of the goods sold and hired back under the agreement for each charge registered and must be paid in addition to all other sums payable under the agreement before the charge(s) will be released.
You can settle our agreements early and there are no additional penalties for doing so, however, you will pay exactly the same amount whether you settle the agreement early or if you let the agreement run it’s full term. The settlement calculation is simply, all the contractual payments that would have fallen due (had the agreement not been settled early and the required 3 months notice period given to terminate) added together plus any special risk fees ( payable if you have not provided evidence acceptable to us of insurance of the goods) and any other fees shown clearly in the agreement and which we have highlighted below but with no discount for early settlement.
As we have already explained, the finance offered will not be a loan but instead will be a hire arrangement. The hire agreement will not be cancellable and will provide for hiring to be for a minimum primary term after which it can be terminated only by you giving us a notice period of 3 months to terminate. Unless or until that 3 months notice has been given and expires the hiring will continue for a secondary term until the notice period ends. At the end of the hiring you may be given an option to regain title to the goods by purchasing them from a third party.
The hire agreement does not have an interest rate as it is NOT a loan. The easiest way to work out what you will pay back is to add up all your payments due including the fees stated in the agreement. We recommend you request & review all our documents prior to entering into any finance agreement. We do not give tax advice and hold no responsibility for the accuracy of any tax or equivalent interest rate assumed by you, so you should seek independent expert taxation advice from your accountant for verification on potential tax relief relating to your specific situation.
Once a finance agreement has been signed there is no cooling off period. If you are vat registered, you may claim the vat back on the monthly payments and you will also have a vat liability upon receipt of the initial sales proceeds.
Potential fees and charges on the agreement:
If you miss your monthly payment.
Bi Annual maintenance fee
A Half Yearly Management Fee of £195 plus vat is payable every six months from the date of the Agreement until the agreement ends .
A one-off document fee is charged at the start of the agreement
Primary rentals are the monthly payments you are paying on the agreement for the period shown on your agreement
Secondary rentals continue unless or until you give us at least three months written notice to terminate and such notice will not take effect and start to run until the Primary Period has elapsed even if it is given earlier
You must also pay a Security Fee equivalent as a prior condition when you are otherwise entitled to have any debenture, legal charge or unilateral notice we have registered, removed or released.
Special Risk Fee
You must insure the Goods on the finance agreement so that they are covered throughout the term. You must provide us with proof of insurance prior to pay-out of the finance transaction. If you fail to provide Proof of Insurance and on time, we will automatically charge an increased Special Risks Fee and give you notice that the increase will remain until you have provided Proof that the goods are insured. The Special Risks Fee incurred during any period when you fail to provide Proof of Insurance will not be refundable under any circumstances. The increased Special Risks Fee will stop immediately once you prove the goods are insured.
We advise you to review terms, charges and fees on our agreements before you commit to anything.
IF YOU DEFAULT OR PAYMENTS ARE NOT KEPT UP ON YOUR AGREEMENT AND THE AGREEMENT IS TERMINATED ANY SECURITY GIVEN BY A GUARANTOR OR CHARGEE MAY BE AT RISK AND THE PROPERTY CHARGED COULD BE REPOSSESSED. IT MAY ALSO MAKE OBTAINING CREDIT MORE DIFFICULT AND (WHILE NOT RESTRICTING ANY OTHER RIGHTS WE MAY HAVE) WE MAY TAKE SOME OR ALL OF THE ACTION SET OUT BELOW AGAINST YOU OR ANY GUARANTOR OR CHARGEE.
- Placing a default on the customer’s credit file; or
- Instructing repossession agents to repossess the goods hired.
- Appointment of a Receiver over the property charged or issue of court proceedings to enforce the right to possession and sale of the property under the terms of the legal charge;
If you experience payment issues or your business stops trading, we strongly advise you to contact our customer services/collections department straight away who will try to help you and work with you.