The Process

 

Will you be able to apply for a loan from us?

The first thing you will have to demonstrate is that you have made a genuine application for funds to your bank or a mainstream lender – and that you have been turned down.

Your business can be at any stage: you may require money to start-up; capital to expand your business; or funds to bridge a gap. Whether you are a sole trader, in a partnership or have a limited company you will be considered for a loan.

Fredericks Foundation operates across England and Wales and your business will need to be within an area that we cover.

What will we want from you when you apply?

The terms and structure of any loan offer will be entirely at the discretion of the Funding Panel. Before you apply for a start-up loan, if you haven’t already done so, we strongly suggest that you undertake some business training. Business Link can tell you about free courses in your area if you phone 0845 600 9006.

We will need:

  • Evidence of bank refusal
  • A completed application form
  • Identification including photo id
  • A business plan (including personal budget)
  • A cashflow forecast for between 1 and 3 years depending upon circumstances
  • Your own statutory credit report from Experian or Equifax
  • 3 months personal bank statements

For existing businesses we will also require:

  • Accounts for up to 3 years
  • Current management accounts
  • 6 months business bank statements

In certain circumstances personal guarantees may be required.

What happens once you’ve applied?

Once we have received your application and business plan you will be allocated a Client Manager who will appraise your plan and may ask you for additional information. Once they are satisfied that you meet the criteria they will work with you on your plan. They will also complete an assessment of your personal circumstances before taking a decision about whether to refer your application to the Lending Panel.

At the Lending Panel you will be invited for a telephone interview where you will be given the opportunity to talk about your business and your need for finance. You will be informed of the Panel’s decision immediately it is available. Successful applicants will receive an offer letter which will outline the full terms and conditions of the loan.

Support will continue to be made available to you for the duration of the loan and you will be expected to keep us fully informed about the progress of your business. We also expect you to include support for Fredericks Foundation on your website or printed material.