GrowthLine is designed to be a flexible means of borrowing for your business.

To better understand the costs of your facility, we have split charges into two categories: interest charges and service fees.

Interest charges
Interest accrues daily on the outstanding balance on your account. What we refer to as ‘Interest’ comprises of 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’ on your loan agreement form.) If/when we make you an offer for a GrowthLine facility, we’ll advise you of the Loan 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 throughout 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 platform. Each month, on your Monthly Payment Date (set up when opening your account), we will collect a minimum monthly repayment via Direct Debit.

Service Fees
We charge a Service Fee each month for businesses borrowing with GrowthLine. This fee will be the higher of:
0.4% of the peak balance on your account within the prior month, plus VAT; or
0.4% of 40% of your Facility Limit, plus VAT.

For example, let’s imagine you have a Facility Limit of £200,000 and 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.

Your Service fee calculation for March will be the higher of:
0.4% of £100,000 (your peak balance); or
0.4% of £80,000 (being 40% of your Facility Limit) 

For the month of March, your service fee would be £400 plus VAT.

Let’s now imagine that you repay the £40,000 outstanding on the 16th of April and don’t borrow anymore funds. Your peak balance during April would be £40,000.

Your service fee calculation for April will be the higher of:
0.4% of £40,000 (your peak balance); or
0.4% of £80,000 (being 40% of your Facility Limit) 

For the month of April, your service fee would be £320 plus VAT.

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