Terms of Business

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Our Background

 

SME Business Finance Ltd is directly authorised and regulated by the Financial Conduct Authority (FRN 703334) for lending, credit broking, mortgage mediation and protection (insurance).

 

We have access to the whole of the market and have put together a large panel of lenders to cover all areas of funding.

 

We market ourselves to customers either directly or through introducers to find customers with funding requirements. We would then approach relevant funders to get the best outcome for our customers. In looking for the best outcome this could include product, cost, length of repayment, deposit/cash input, guarantees required, early settlement terms and speed of lending.

 

We will put together a credit proposal that will include details of the business and related individuals, together with financial information such as accounts and bank statements and provide the rationale behind the financial requirement.

 

 

How we are paid

 

Lenders pay us a commission for introducing business to them – this will be their cost of sales in getting customers and then they make a profit being the difference between their cost of funds and charge out rate.

 

The commission we will receive may be a fixed amount but is more likely to be a percentage of the amount borrowed. Different lenders have different commission structures.

 

On asset finance and loan transactions, we will not normally charge for our advice and will be reliant on receipt of an introductory commission from the lender.

 

On property transactions the lender will charge a fee which they will share with us. They may pay us a greater percentage of their fee in recognition of the levels of business we do with them. Sometimes there may be an added brokerage fee, perhaps on smaller transactions or where the transaction is more complex and there is significantly more work to do. In these cases, the fee is likely to be added to the loan amount.

 

Where we are involved in structured finance and re-banking, we will charge a fee payable once a facility is in place. However, we will deduct from this any commissions paid to us by lenders.

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We may share our received commissions with individuals or companies that introduced you to us.