GrowthLine is designed to be a flexible means of borrowing for your business.
You will only be charged based on what you borrow: we don’t expect you to pay setup or exit fees. To better understand the costs of your facility, we have split charges into two categories: interest charges and service fees.
Interest accrues daily on the outstanding balance on your account. What we refer to as ‘Interest’ comprises three elements: (1) interest due to our platform lenders, (2) a contribution to our Loan Loss Provision (which protects lenders against borrower defaults), and (3) fees due to us for matching you to investors on the platform. (You may see this referred to as your ‘Loan Rate’ or your ‘Interest Rate’.) If/when we make you an offer for a GrowthLine facility, we’ll advise you of the Interest Rate you’ll be charged on your borrowing. (This rate may be updated as your requirements change.)
Many borrowers will pay Interest at different times through a typical month. Interest is paid each time you repay all or part of a loan, and Interest is also paid if/when your loans roll over on the marketplace. Each month, on your nominated collection date (set up when opening your account), we will collect a minimum monthly repayment via Direct Debit.
We charge a service fee each month for businesses borrowing with GrowthLine. This fee will be 0.4% of the peak balance on your account within the prior month, plus VAT. If the balance on your account was £0 throughout the prior month, no service fee will be due for that month.
Let’s imagine that at the beginning of March you had a balance of £0. You then borrowed £100,000 on the 6th March and repaid £40,000 on the 28th of March. Your peak balance during March would be £100,000, and your service fee for March would then be £400 plus VAT.
If then on the 9th of April you repaid your balance in full and did not borrow any more money, your peak balance in April would be £60,000, and your fee for April would then be £240 plus VAT.