Frequently asked questions
We get lots of questions from borrowers about loan. On this page, we've set out the ones that get asked most often.
If you can't find the answer you're looking for, our team is ready and waiting to help you.Get in touch
A. The Process
How can I apply for a loan?
To apply for a loan simply register as a borrower and one of our Relationship Directors will get in touch with you to collect the some initial information. Alternatively, contact your finance broker, who will be able to help you with the application process.
Once I apply for a loan, how long will it take to process?
Our Relationship Directors will meet with you soon after an enquiry or application has been made.
They will collect the required information needed to write a credit report. This will take 2-3 days to write and then will need to be checked.
Upon successful sign off by our credit team the legal process can begin. The timescales for this process can vary dependant on the responses from the clients nominated solicitor. Our underwriting facility means that once all the paperwork is in place, loans can be funded immediately upon completion of the legal process.
What happens if I miss a repayment?
Whilst we remain sympathetic to cashflow issues that may mean repayments are missed, this remains an Event of Default. If a payment is not made on the due date, Avigo Capital has the ability to charge default interest (as advised in your Loan Agreement) on the balance of the loan until the missed repayment is made. Should this not happen, and should a new agreement not be reached then Avigo Capital ultimately has the ability to call up any and all of the security you have granted to obtain full repayment.
Are there any extra charges from borrowing money through Avigo Capital?
Whilst there are charges for borrowing money from us, these are generally negotiable and will be agreed prior to any loan being listed.
Is there an early repayment fee?
Whilst we do not generally charge early repayment fees some loans may attract a minimum charging period, although this will be advised and agreed prior to any loan being listed.
The choice is yours as to how much information you wish to divulge and if the business is to remain anonymous. Some lenders choose to do additional due diligence of their own, so disclosing as much information to them as possible can be advantageous. They may wish to visit your website or look at your competitors before they make a decision to lend.
Why do borrowers not go to the banks if loans are secured?
Since the credit crunch and start of the recession, the appetite of banks for risk has reduced significantly and this means they have tightened their lending criteria. As banks are very large organisations, they have to set and enforce strict criteria across the board. This can lead to inflexibility and there are many borrower proposals which are rejected by banks for failing to meet lending criteria in a very limited way.
As a smaller organisation with a lot of lending experience on the team, Avigo Capital is able to be flexible and use judgement as to whether proposals are worthy of support, despite the fact they may not fully meet a clearing bank’s lending criteria.
What type of loans can Avigo Capital facilitate?
Avigo Capital provides fast and flexible finance to UK SMEs and Property Developers. We can facilitate:
- Commercial mortgages
- Secured SME term loans
- Development finance
- Buy-to-let for Landlords
- Bridging finance