How the loan process works

First step

Before making an application, please call the Loans Desk on 01732 774050 to discuss the suitability of loan finance for your project. If we cannot help we will try to suggest alternatives.

Application

You will need to fill in a Loan Enquiry Summary form, which asks for as much relevant information as possible in order to assess your application. When your application package is complete, send it to us in Tonbridge. We will acknowledge receipt and give an indication of how quickly we will be able to process your request. If you do not receive an acknowledgment or call from one of our lending team within three working days, please call 01732 774050.

Assessment

For some organisations, a Charity Bank loan may not be the best option.  In that case, we will let you know as quickly as we can, and offer advice about where to go instead. We may also help to broker deals for those projects where commercial finance may be appropriate.

If we think we may be able to help with loan finance, we will arrange for one of our assessors to visit you and work with you, to better understand your organisation and what is needed to get it to the next level of development.  They will help get your loan application in good shape, which may include suggestions about the structure or terms of the loan and which the assessor will discuss with you.  

Once the assessor has completed the application, working with our Tonbridge-based Credit team, it is then presented to our internal Credit Committee.  This includes members of the senior management team, and can approve secured loans up to £150,000 and unsecured loans up to £50,000.  Secured loans above £150,000 and unsecured loans above £50,000 are presented to an External Credit Committee, which includes members of the Board. 

The internal committee meets most weeks.  Our lending team endeavours to respond to all enquiries within 48 hours and to submit applications within seven days of receipt of all the required information and clarification of any outstanding issues.  

However, we understand that sometimes a crisis – such as a short-term cash flow issue – can arise suddenly. If your need is urgent, please give us a call, or let us know at the outset and we will tell you if we can meet your timescales.

Notification

Once a decision has been made on your application, we will advise you of the outcome.  If the loan is agreed, we will outline the terms on which we are prepared to make a facility available to you (the ‘Heads of Terms’). If you feel these do not meet your requirements, or you cannot fulfil them, please call us immediately. The notification letter will also give you details of our one-off fee for arranging the loan. You should send us this fee with the acceptance copy of the Heads of Terms. 

Documentation

Once you have returned the accepted copy of the Heads of Terms, together with the fee, we will send you the formal Facility Letter, which details the legal agreement between us and sets out the conditions that you have to comply with before you can draw the money (known as the ‘conditions precedent’). It also tells you of any other conditions that you may have to fulfil on an ongoing basis (such as providing us with financial information). Unless agreed otherwise, the Facility Letter should be approved by your Board, signed and returned to us within 30 days.

If we are taking security, such as a charge over property, we will instruct solicitors to act on our behalf. Once the paperwork has been completed and the conditions precedent met, you can submit a request to draw down the loan. We will pay the money to your organisation's account by direct transfer. Unless we agree otherwise, you will have up to 90 days, from the date of the Facility Letter, to draw all or part of the loan. After that a non-utilisation fee will be payable.

And afterwards...

As part of the loan process, we will agree with you what information you need to send us on a regular basis. This information is very important and must be supplied by the agreed dates. If something happens which causes you to change plans or might have an impact on your organisation, please get in touch straight away. The sooner you call, the sooner we may be able to help.