When it comes to business lending, lenders rely heavily on sophisticated technology to identify the safe bets and automatically manage risk by rejecting those who don't tick the right boxes.
In the not-too-distant past, financial services firms made decisions based entirely on human judgement, however today the majority use different types of algorithms to predict financial markets, identify prospective employees, assess potential customers and offer loan applicants an immediate yes-no decision. Despite the speed and various advances in financial technology, algorithms do impose limitations and have the potential to decline an opportunity based solely on someone’s digital footprint.
Computers excel at separating black from white. While it makes perfect sense for finance firms to employ algorithms to manage risk and automate management of tasks, what happens when it restricts too many people? What happens if the computer says no to you? Algorithms are trained to make recommendations based on data that’s not always representative of the wider picture. So, in a world where there is a great deal of grey, we need to rethink how reliant we are on technology and the impact this has on businesses looking to borrow.
When assessing potential borrowers, lenders have historically focused on limited types of data that directly relate directly to the likelihood of repayment, such as debt-to-income and loan-to-value ratios and individuals' payment and credit histories. More recently, the emergence of big data analytics has prompted many lenders to consider non-traditional types of data that are less obviously related to creditworthiness to support decision making. The trouble with all of this is that decisions are made on data from the past rather than the potential in the future.
The goal of an algorithmic system is to eliminate the subjectivity and cognitive biases inherent in human decision-making. While this makes sound business sense to lenders, it means those who don't score well are left with limited options when they look to borrow. If your client has a strong business case, experience and expertise in a chosen sector and an opportunity to exploit, it can be devastating to be told that an algorithm has said no.
At Accredo, we have embraced technology and seek to use it to maximise our efficiency and manage risk, however, we haven't forgotten the value our team members can add to ensure we lend to the right people. As such, we don’t rely on automated credit scoring; instead, we consider each application on its individual merit. We listen to your customer’s story and weigh up the opportunity to make a rational decision on lending. As a result, this gives a better, more balanced decision that benefits more businesses and means we may offer business finance solutions when other lenders won’t.
Our specialist team is always on hand to answer your queries regarding secured business loans so please do call us on 01444 255915
We are open Monday to Thursday 09:00 - 17:30 and 09:00-17:00 on Fridays.
Our switchboard number is 01444 255915 or you can email on customerservices@accredo.co.uk and we'll get back to you as soon as we can.
We will need the following information:
Finance brokers can submit enquiries using our new business portal which our customer services team can provide access to.
Please call 01444 255915
for more information or email customerservices@accredo.co.uk
Please note we are unable to accept applications direct, all applications must be received from a finance broker.
Once all conditions have been satisfied and we have completed our final checks, we will release the funds and they will be in the customer's bank account within 24 hours.
Firstly we will need to receive a request for finance via a broker.
If we are able to issue an acceptance, we will send our Property and Borrower questionnaire for the client to complete. On receipt of this completed questionnaire we will contact the client to collect the legal fees and, if applicable, valuation fees.
Once we have received the fees, we will instruct our solicitors, book the valuation, contact other lender/s and raise loan paperwork for signature.
Whilst we make every effort to complete the process as quickly as possible and in line with the client's requirements, we are unable to give a specific timescale due to some aspects of the facility being reliant on external parties but once all conditions have been satisfied and we have completed our final checks, the pay-out process can take up to 24 hours.
Full details can be found on our 'Our Process' page.
No, we only offer secured loans.
We offer fixed rate, fixed term loans from 3 months to 10 years secured on UK property.
We are also happy to consider secured finance leases.
We do not offer unsecured finance.
We are happy to consider security in England and Wales.
Please note we are unable to lend against property in Northern Ireland or outside of the UK.
All our agreements must be secured on UK property.
We consider residential, buy-to-let, mixed-use and commercial properties.
Subject to suitable equity we consider 1st, 2nd, 3rd and even 4th charges.
Yes, we are happy to offer a low start payment option and in some circumstances we are happy to consider seasonal repayments.
We are happy to consider proposals from all industry sectors, there are no exclusions.
We are happy to consider a further advance once your first agreement is live.
If sufficient equity is available the additonal borrowing can be attached to our existing charge. If there is not enough equity an alternative property can be considered.
We require these to fully understand your clients reasons for borrowing, their background and that of their company as well as to ensure they are able to repay us in line with the terms of the agreement.
If a property doesn't value up our underwriters will review the proposal to identify what level of borrowing we can consider.
There is no fee to apply for finance.
When an application is accepted, customers are required to pay a contribution towards the legal fees in order to begin the legal process and in some circumstances a valuation fee may be required.
Any loan secured upon such a property would have to be repaid when the property is sold, but we may be able to offer you a short term facility.
Please contact your broker to discuss the options available to you.
Yes, it is necessary for us to carry out credit searches in order to consider your application.
Sight of a valid passport or driving licence is preferable for this purpose. We can send you a list of our acceptable forms of ID.
As we will be taking a charge over a property, we require the home owners and borrower to sign certain legal documents in the presence of their solicitor.
Subject to the conditions of the acceptance being fulfilled.
Existing customers should approach the broker they initially dealt with to discuss any additional requirements.
You will be required to make a contribution to the legal fees involved in setting up your facility.
In some circumstances an internal valuation of your property may be required. If there is a charge for this service, you will be made aware in advance of the survey.
When your agreement goes live a 1% acceptance fee becomes due. Depending on the term of your agreement a £125.00 annual administration fee may be applicable and a 1% security release fee is due to remove our charge from your property.
Fees are applicable if your agreement is not conducted within the contractual terms.
We may be able to do this in some circumstances, however please note that a fee will be applicable.
Yes. Clients are able to overpay, but it should be noted that our facilities are of a fixed rate, fixed term nature.
Clients experiencing difficulties meeting their repayments should contact us as soon as possible so we can identify and agree the most appropriate course of action.
Please get in touch with us as we may be able to transfer our security to another suitable property or we can provide an early settlement figure.
No, we require payment of a 1% security release fee to remove our charge.
We're sorry you feel you want to make a complaint. There are a number of ways you can get in touch:
Post: Mill Green House
Mill Green Road
Haywards Heath
West Sussex
RH16 1XJ
Tel: 01444 255915
Fax: 01444 255910
