Frequently Asked Questions
Why do you need to know about my assets and liabilities?
We need to assess your overall financial circumstances to ensure that we are lending responsibly and that the amount of debt you are undertaking is sustainable.
Can I post my paperwork to you?
Complete as much as you can online. If there are paper documents you need to send and you haven’t got access to a scanner please send them to Fredericks Foundation Applications, Fredericks House, 39 Guildford Road, Lightwater, Surrey GU18 5SA and make sure your name and address is attached.
Do I need to send you original documents like my passport or driving licence?
No. Do not send originals. Scan or take a photo and upload it online. If your application progresses you will be asked to verify the originals only if your application is approved.
Where can you offer loans to?
You can apply for a loan if you are a U.K. resident living in England and Wales. Unfortunately we do not currently offer funding in Ireland or Scotland.
Do you offer grants?
No. We offer repayable personal loans for business start up or growth.
What is the duration of the loan?
The terms and structure of any loan offer will be entirely at the discretion of the funding panel - most loans are agreed for repayment over 2 to 3 years though the term may be shorter or longer depending on the size of the loan and the circumstances.
How do I know what the loan repayments should be for my cashflow forecast?
Telephone us (01276 472722) and we will be able to offer you guidance.
I have never done a cashflow before. I may not get it right. What should I do?
Have a shot at it with the information you have available. Follow the tips on the form. Our Support team will help you to refine it.
How long does the funding process take?
This varies very much according to how much information you still have to research following the initial review of the business plan, and how quickly this is done. A funding meeting can be arranged within a four week time span once all the information requested is obtained and all paperwork is up to date.
Is there a penalty or fee should I wish to pay the loan back early?
How soon do I start paying back the loan once it has been awarded?
Normally repayments start the month after the loan has been drawn down (but can be later if your cashflow forecast shows this is required.)
How is the loan repaid?
If you are successful and a loan is awarded you will receive a Loan Agreement giving full details of the monthly payments and loan term. If you wish to accept the loan you should sign and return the relevant copy of the agreement together with the direct debit mandate that accompanies the loan offer. This will be forwarded to your bank who will set up a monthly direct debit from your business bank account to Fredericks Foundation.
What happens if I cannot make a payment?
You should telephone us as soon as you know you may have a problem so we can agree any amendment to the scheduled payment. You will be required to produce bank statements and some trading figures to support your request.
We will do everything we can to help you, but you should always remember we cannot help if we do not know there is a problem. The key thing is: 'keep in touch!'
Can I get funding for a course I need to do?
Unfortunately we are unable to fund for training or education.
Will I have a better chance of success if I get someone else to write my business plan?
No. It must be your own plan. It may need refining and further questions answering, but if so we will guide you with this. We will not pay for the writing of the plan as part of your loan. If you pay a third party to write your plan this will count against you.
Why do you ask for a letter of refusal from a bank? And what happens if I can’t get one?
Fredericks is not in competition with banks. If you are able to secure bank finance you should do so – it will almost certainly be cheaper. If you explain to the bank why you need a letter of refusal they will usually oblige. Alternatively, you will be asked to sign to confirm that you have been refused before your loan can be drawn down.
What can I use my business loan for?
You should write in your plan what you need the money for. The Client Manager and funding panel will provide guidance. Fredericks will not normally fund significant amounts of working capital – that is money to pay living or running costs whilst the business is being set up.
Can I buy a car or a van with the loan?
Yes, if it is for the business. You will be asked to provide your National Insurance Number. We will not normally consider lending for a vehicle if you have more than 6 current penalty points and you must hold a valid full driving license.
If I have outstanding debts and a poor credit history – will that prevent me from obtaining a loan?
No. We will consider your application and look at what actions you have undertaken to address your debts. It will count in your favour if you can show that you have made arrangements with your creditors. When you have obtained your Statutory Credit Report make sure you read through it and understand everything that is on there.
What happens if my business does not succeed?
You will still be responsible for repaying the loan.