What is LPO/LSO Financing?
- Facilitation of smooth business flow
- To expand business opportunities
- Help customers manage their business risks
- Help customers manage their supply chain
If you wish to apply for a loan then we will, with your prior consent, conduct a search of your credit history with a credit reference agency. This will leave a record on your credit file which will be seen by other credit providers you may apply to. We may decline your application if you provide us with false information as part of your application, or if there are issues with your credit scores when we check your details with a credit reference agency. We will give you details of the agency that we used to inform our decision so you may contact them. For more information, a leaflet called ‘your application and credit scoring’ is available on request.
To apply for a business loan you must agree to us conducting a credit check on you. It’s very important to provide accurate information in your application. We might decline your application based on the results of your credit check, or if you have provided false information.
If you miss a loan payment, we will record the details with a credit reference agency which could damage your credit rating and may make it more difficult for you to obtain credit in the future. Also, failure to make your loan payments when they fall due may result in legal proceedings being taken against you by Faulu Bank, which may result in us taking enforcement action against you in order to recover the monies that are owed. If you have any current or savings accounts with Faulu Bank or any other member of the Faulu Bank, we may move funds from those accounts to settle any outstanding payments on your loan. Alternatively, we may terminate the loan agreement early, meaning you will have to pay the outstanding total amount payable early. If you don’t make your repayments and incur significant arrears, we may decide to sell or transfer your loan to a debt recovery company. That company may commence legal proceedings against you that may result in enforcement action being taken against your property for recovery of the monies owed.
If you miss a repayment, we can deduct the missed payment from your other accounts with us. We will also record details with a credit reference agency that could damage your credit rating. If you miss multiple repayments, your credit rating can be damaged, and you might have legal proceedings brought against you or a charging order registered against your house. To avoid getting into this situation please contact us if you are having difficulties in making your repayments.
You will need to make repayments every month by Direct Debit which include the principal (the original loan amount) and interest over the duration of the loan. The monthly repayments will be for the same amount every month until the loan is fully repaid. Details of the amount you have to pay (both monthly and in total, including all interest) the frequency and number of repayments, and the duration of the loan, are contained in your credit agreement.
You pay a fixed amount each month by Direct Debit (made up of the original loan amount and the interest charged). Your credit agreement will detail how much you pay (in total and each month), and when the payments will be due.
Before signing your business loan credit agreement, you should read all the pre-contractual information and the credit agreement provided to you carefully to ensure that this is the best product for you and that you understand the features of this product.
If you don’t make your repayments and incur significant arrears we may decide to sell or transfer your loan to a debt recovery company.
You should read all documentation provided to you and consider the information carefully before taking out a business loan to make sure that it is right for you.