Fees and charges
At FundingKnight we don’t believe in hidden costs and fees. Take a look at our peer-to-peer loan costs below.
Borrowing
Business loans
We charge an initial arrangement fee for our Business loans. This is deducted from the amount advanced to you upon drawdown. The size of the fee is a percentage of the loan amount:
0-12 month loan: 2.5%
13-24 month loan: 3.0%
25-36 month loan: 3.5%
37-48 month loan: 4.0%
49-60 month loan: 4.5%
A repayment fee is also taken calculated at 1% of each loan repayment.
A £25 deduction will be made at drawdown to cover bank charges.
While a loan is in default we are entitled to charge a fee of £5 per day as well as any costs incurred in protecting the investors’ interests. In addition, the interest payable to investors is increased by 4% during the period of default.
Property Bridging loans
The reserve rate set is linked to the Loan to value (LTV) for your property. The table below gives you an idea of the rates you might pay; please note these are indicative rates:
LTV Monthly cost
61-70% 0.99%
51-60% 0.90%
50% 0.80%
The monthly compound interest rates include our monitoring fee of up to 0.25% per month.
A 2% Arrangement Fee of the loan amount is deducted from the loan advance together with £25 Bank Fee to cover the cost of transferring loan monies on drawdown.
You will also need to pay for a professional valuation and for legal costs in relation to the loan.
While a loan is in default we are entitled to charge a fee of £5 per day as well as any costs incurred in protecting the investors’ interests. In addition, the interest payable to investors is increased by 4% during the period of default.
Green Energy loans
Our credit analysts will agree a maximum interest rate with you. Our indicative interest rates for Green Energy loans are currently between 9% and 10%.
Our arrangement fees are:
FundingKnight – 2% of the loan amount
Central Union Partners – 2% of the loan amount (+VAT)
We charge a monitoring fee of 1% per annum.
There will also be legal costs and a valuation fee. As a general guide these should not amount to more than 1% of the loan amount, but this will be dependant upon the circumstances of each application.
A £25 deduction will be made at drawdown to cover bank charges.
While a loan is in default we are entitled to charge a fee of £5 per day as well as any costs incurred in protecting the investors’ interests. In addition, the interest payable to investors is increased by 4% during the period of default.
Investing
With FundingKnight you can invest directly in hand-picked British businesses which suit you – businesses, properties or green energy projects.
There are no fees for investing – either via our live auctions or buying loan parts in the Marketplace. If you wish to sell a loan part in the Marketplace we charge a 0.25% fee.
It is most pleasant and reassuring to come across the personal touch in the business world and I do appreciate their time.
Lynn Emm
FundingKnight investor