Step 1
Prospective customer contacts Nationwide Finance Limited (“NF”) applying for business finance in a Limited company name via the NF website with an online application or over telephone. An email is sent back to them confirming that the agreements we offer are corporate loan agreements, all agreements are additionally secured by personal guarantees and legal charges on residential or other property owned by the guarantors, and that the finance is available for business use only, and that we do not offer regulated consumer agreements of any type. Unsecured options are available to listed companies, FTSE 250 companies, charities, non-profits, CICs and other associations. The email also lists the various fees and charges which may become payable under the agreement.
Step 2
NF account manager contacts the customer and explains the key features of our agreements to check they are suitable for the client. They explain again that we require Personal guarantees and legal charges, and that our agreements are business loans and we only deal with companies, not consumers.
The Account Manager requests and gathers further information from customer including financial information. Account Manager asks numerous questions to understand the client’s business and explains the key features of the proposed transaction including the agreement, drawing the customer’s attention to the charges and fees involved and checks the suitability against the client’s needs.
Step 3
Account manager submits all information to the underwriting department for a decision to either approve or decline the application or to request further information. After affordability checks and underwriting checks, which include making sure the agreement and the transaction overall is suitable for the client, underwriting either gives the Account Manager an approval, a decline or requests a guarantor to support the application. If approved the account manager will email you the product to be offered along with copy documents for your review.
Step 4
If a guarantor and/or legal charge over a property(ies) is/are required, the Account Manager will email the customer asking for details of the person(s) prepared to give a personal guarantee and/or legal charge over their property and who must confirm they will be a Director or other officer or involved in the business. The Account Manager will contact the guarantor/chargee to explain the requirement, explain the key features and gather their information and will tell them, among other things, that if the customer defaults the guarantor would be liable for the full debt and any property subject to a legal charge may be repossessed.
Step 5
All documents required to be signed including the agreement, quote, offer, guarantee and legal charge are posted to every signatory(ies) home address for their consideration and we recommend in writing they take independent legal advice. We confirm again in writing that their home may be repossessed if the customer does not pay the debt secured on it.
An email is also sent to the customer and all guarantors with a second copy of all documents including the quote with all amounts payable, guarantee, legal charge and the settlement calculations. Again NF recommend in writing they take independent legal advice before signing. In addition, attached to the email are the key features and suitability document and a transcript of the Manager’s call with the customer.
Step 6
An appointment email is sent by the Account Manager to all of the signatories and they are all required to email back to NF to confirm they have received the previous email and documents specified previously, and that they would like to proceed with the agreement and any guarantee and legal charge(s) over property required and in each case they understand the terms offered, risks involved and fees or other charges payable.
Step 7
A Key Features Information Approval Script is read in a further telephone call made by the Account Manager to each of the signatories confirming the secured-on property finance conditions, the key facts, charges and fees, risk of repossession, key features and quote and offer (a record of this call is made and the transcript is again emailed to all signatories).
Step 8
NF representative attends the pre arranged appointment at the customer premises and presents to the customer and individuals giving any guarantee or legal charge all documents for signing along with a company brochure. In the appointment the signatories consider the documents for a 3rd time and either proceed to sign them or they post them back to NF as and when they are ready to proceed. The representative leaves an electronic copy with a third copy of the documents with the customer and each guarantor.
Step 9
In the appointment all signatories are asked to confirm in their own handwriting if the representative has read out a standard script, not been in a rush, that they have not been unduly influenced or pressured, that they have received copy of all documents before and during the appointment and by email (three times) and that the representative has not made any promises or representations which differ or materially alter the terms of the documents signed, if they agree that this is the case.
Step 10
Each signatory will receive a recorded know your customer call from NF, to check if they have received the posted documents whereby they were recommended to take independent legal advice and to ensure they understand everything including the quote and offer, key features, fees and charges payable, the guarantee and the legal charge on their property. They will also be given a further explanation of the settlement procedure and will be asked to confirm that they have not been unduly influenced by the customer or any other person. If they are happy to do so,. the customer and each individual giving a guarantee or legal charge are asked if they want to proceed, have more time, or cancel the proposed agreement.
Step 11
If the customer and all guarantors want to proceed the documents are either posted back to NF office by the customer or their solicitor or given back to the representative. The documents go through a checking process by NF before the legal charges are registered.
24 hours later NF make a 2nd compliance recorded call to every signatory to check if they still want to proceed after they have had time to reflect. All facts, settlement process and key features are confirmed again. They are given the final option to proceed, have more time or cancel. The call will fail our compliance check if the customer or any guarantor is not happy or does not understand any aspect and will not proceed unless or until they are happy and understand everything.
Step 12
NF email a welcome pack with a copy of all signed documents to all signatories. This is now a fourth set of documents received. NF ask all signatories to reply to the email confirming if they have received the attached welcome pack and if they would like to proceed. If they all confirm the agreement goes live and is signed by NF and allocated an agreement number, a direct debit is set up for the monthly payments and NF pay the funds customer.
A repayment schedule for the loan is posted to the customer company setting out the list of future scheduled payments per year of the agreement. HAPPY CUSTOMER AND HAPPY FUNDER.
01234 240155
Loans of £6k – £10m