ArchOver has launched ‘Secured & Assigned' business loans, expanding from its current ‘Secured & Insured' lending model.
ArchOver's first Secured & Assigned loan will be for Ergowealth, a firm of chartered financial planners based in Marlow, Buckinghamshire. Founded in 2013 by a group of experienced financial planning professionals, the firm requires the funding to accelerate its growth strategy and to help expand the newly-launched Mortgage Advisory services.
ArchOver's CEO, Angus Dent, commented: "We are continuously reviewing opportunities that benefit both our lenders and borrowers. Lender security has always been the back-bone of our business and we are delighted that we can find additional loan opportunities that align with our values and that are also attractive to our lenders. We are always striving to improve our services and provide multiple lending opportunities to our investors, which means we must continue to build our borrower pipeline. Most importantly, there are many established UK businesses that need help to grow, but cannot access the financing they require due to the endless red-tape and reduction in SME banking services."
ArchOver facilitates fixed term loans for growing UK businesses. Under its current model, loans are secured against a company's Accounts Receivable (ARs), where those ARs are covered against loss by credit insurance; this is referred to as Secured & Insured. This new lending opportunity matches ArchOver's primary principle of offering highly secure, asset-backed loans to investors. The only difference in the new model is loans will be secured against future contracted revenue, with ArchOver taking assignment of all recurring contracts; this is referred to as Secured and Assigned.
ArchOver will continue to take an all-asset charge over the company and have all revenues flow through a controlled bank account owned by ArchOver. All lenders will continue to enjoy the protection of having ArchOver closely monitor all borrowers, reviewing their aged summary of ARs and management accounts on a monthly basis throughout the entire loan period. This procedure has provided lenders with extra protection and is one of the main reasons ArchOver has had no borrower defaults, late payments, or losses to date.
Secured & Insured loans will remain a large part of the ArchOver offering, with new lending models continuously being reviewed.