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Credit4 Flexible Facility

The Credit4 Flexible Facility gives businesses access to flexible credit in amounts of between £15,000 and £30,000, for terms of 3 to 12 months to fund their growth.

If agreed, amounts may be drawn, repaid and redrawn as many times as suits your business during the facility term (subject to minimum drawing amounts).

Interest must be paid fortnightly, with the outstanding principal being payable in one lump sum at the end of the term. The facility is designed to give a growing business flexibility to fund its growth opportunities and to control its funding costs.

More detail can be found on our FAQ page.

How It Works

  • You apply for the level and term of your facility based on your individual business needs, the facility must be for business purposes and we will require suitable guarantors.
  • In addition to our application documentation, we’ll want you to demonstrate the need for the funding by letting us have some financial information, including a cashflow forecast.
  • Subject to our eligibility criteria, approval and documentation, draw the funds when you need them (minimum drawing amounts apply).
  • Repay and redraw capital amounts anytime (subject to minimum repayment amounts) during the term of your Flexible Facility, giving you control over the interest costs of your facility.
  • We will send you a fortnightly statement outlining the interest due for payment and how to pay.
  • Repay all amounts outstanding under your facility at the end of the term. This is a key feature of a Credit4 facility, however all amounts outstanding at the end of the facility will need to be repaid by the end of the term. You can repay in lump sums or one bullet repayment. You must, therefore be confident that your business can afford the repayment or that you will be able to arrange alternative financing at the end of the term.
 

Facility Calculator

Fortnightly Interest

Total Charge For Credit

Total Interest
Arrangement Fee
* The facility calculator estimates the Total Charge for Credit and Total Amount Repayable. In calculating the Total Amount Repayable the following assumptions are made; i) that the full facility amount is drawn down, ii) the facility is drawn for the full term, and iii) all daily calculated interest is paid when due. If you decide not to draw the full amount of the facility for the full term then the Total Charge for Credit could be lower. During the facility term, interest will be charged on a daily basis and therefore the total interest payable may differ from that calculated above.

Please view our Representative Examples (below).
Total Amount Repayable *
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Credit4 Flexible Facility Representative Example 1

Total amount of credit (facility amount): £30,000, term 12 months.

Full facility drawn for the full 12 month term.

Arrangement fee: £1,200 (4% of facility amount fixed). Interest £9,000. Interest rate: 30%pa (fixed on drawn funds). Total charge for credit: £10,200. Representative APR: 34%

Total amount payable: £40,200

Interest is payable fortnightly and capital is repayable in one single payment of £30,000 at the end of the term.

Credit4 Flexible Facility Representative Example 2

Total amount of credit (facility amount): £30,000, term 12 months.

Facility fully drawn for 6 months (182 days) and undrawn for 6 months (183 days).

Arrangement fee: £1,200 (4% of facility amount fixed). Interest rate: 30%pa (fixed on drawn funds). Interest on utilised balance: £4,487.67. Interest rate on non-utilised balance 6%pa (fixed on undrawn funds). Interest on non-utilised balance: £902.47. Total charge for credit: £6,590.14. Representative APR: 21.97%.

Total amount payable: £36,590.14

Interest is payable fortnightly and capital is repayable in one single payment of £30,000 at the end of the term.

If you are unsure about the way in which the charges are calculated on our facilities, please feel free to give us a call on 020 3637 0570 and we will be happy to explain them.