Frequently Asked Questions

 1. How much can I apply for?

£500 - £50,000

2. What interest rate will I be charged?

Typically 20.7% APR (Underlying rate 19%)

3. What does APR mean?

 APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR includes important factors such as:

  •  the interest rate you must pay;
  • how you repay the loan; the length of the loan agreement (or term); frequency and timing of instalment payments; and amount of each payment;
  • certain fees associated with the loan; and
  • premiums for payment protection insurance that the lender chooses to make compulsory.

All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender. Generally, the lower the APR the better the deal for you, so if you are thinking about borrowing, shop around. ("Money Made Clear" - Financial Services Authority - June 2008)

 4. What is it likely to cost?

 A typical loan of £10k repayable over 5 years with a 2% arrangement deducted from the loan, will cost £259.41 per month (APR 20.7%)

 5. How quickly do I have to repay Foundation East?

 Typical repayment periods are between 6 months up to 10 years

 6. I have no money of my own to invest, is this a problem?

 For a start-up a minimum 50% investment is required. 

 7. I have no security to offer, is this a problem?

 Not necessarily - though we will take security if it is available.

 8. I have no credit history/ I have a bad credit history, is this a problem?

 Not necessarily. Just be honest with us from the start - that is all we ask.

 9. How is interest calculated?

 Interest is calculated on the outstanding balance on a daily basis. It is applied to the loan balance monthly.

 10. What if I want to repay earlier?

 a) We are happy to accept ad-hoc repayments (in addition to scheduled ones) which will reduce your loan balance and, therefore, the total interest due over the period of the loan. There is no charge for this.

b) If you wish to repay the entire loan early, you may also do this without charge.

11. How do I make repayments?

Monthly by direct debit. If you do not have a bank account we may be able to assist you in opening one.

12. Is there any proposal we won’t finance?

We do not have any specific sector that we either target or avoid. The only overriding criteria we apply is that the purpose of the business must be legal and ethical. We would not finance any activity that we feel might bring us into disrepute.

13. What geographical areas do you operate in?

We lend to businesses based in / primarily operating in the East of England – this comprises Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk.

14. Does Foundation East provide match funding?

If your family, friends or a bank have loaned you half of the funds you require to start your business or you have received a grant we will match fund up to 50% of your needs.

15. What if I wish to make a complaint?

We have a standard complaints procedure, and welcome feedback if you feel we have fallen below our usual standards of good service.  However, we would advise that our Complaints Procedure is aimed at customer service, and does not cover where your application for support has been declined for commercial reasons by your allocated Loan Manager or by our Loan Assessment Panel (LAP)-see FAQ 15 above