Borrowing FAQ


  • Who can apply for a loan?
    • We provide loans ranging from £100k-£5m to established businesses with at least 2 years of trading history. The borrower must be based in the UK and be willing to provide security, personal guarantees may also be required to secure funding.

      Those looking to raise community loans do not need to provide security and should directly get in touch with our Sponsor Community Chest.

  • What fees do you charge?
    • Upfront fees

      Listing fee

      £1,000 (plus VAT)


      Arrangement fee

      Non underwritten loans – Typically 1.5% (plus VAT)

      Underwritten loans – Typically 2.5% (plus VAT)

      Sponsor fee – as agreed directly with Sponsor


      Legal fees

      Based upon the complexity of the transaction.


      Ongoing fees

      All ongoing fees are incorporated into the agreed interest rate.

      Platform fee

      1% to 4% pa

      This fee relates to ongoing administration, monitoring and risk management. Rate dependent on risk profile.


      Underwriters ongoing fee

      Where a loan is underwritten it will be subject to an ongoing fee of 0.5% pa which is payable to the underwriter.

      Note: The Platform fee and Underwriters ongoing fee may vary according to the risk profile of the loan and will be agreed with the Borrower on a case by case basis.


      Default and recovery fees

      Default Administration Fee

      3% pa (based upon the principal of the loan outstanding at the date of default)

      The Default Administration Fee is charged from the date the Borrower goes into default or a default event occurs and continues until such time as the default is remedied or the Borrower enters a formal insolvency process.


      Recovery Fees

      Recovery fees of 15% of the principal amount of the loan outstanding will be charged to the Borrower, in the event of the Borrower entering into a formal insolvency process.

Applying for a loan


  • Who are Sponsors?
    • Sponsors are a primary point of contact for potential borrowers. They are financial services professionals, in teams that include at least one person with banking experience. Find out more about Sponsors.

  • What is the Sponsor’s role?
    • They assess the business proposals and vet applications for loans. They help the borrower to prepare the loan information. That includes meeting with the borrower and getting to know their business, team, structure the proposal, as well as assessing the security on offer. They answer questions from lenders during the auction.

  • Do Sponsors charge fees?
    • Our Sponsors also charge a fee which varies depending on which Sponsor and the loan itself. Typically their fees range from 2-4% on drawdown.

Repaying the loan

  • How do you calculate loan repayments?
    • The amount of the fixed monthly repayments depends upon the amount borrowed, the rate of interest and the loan period. To help calculate this, we have prepared a spreadsheet to see how these variables will influence your monthly repayment. Download our loan repayment calculator.

  • Can I repay the loan early?
    • Yes, you can and there are normally no penalties or additional costs for early repayment of the loan. The exception to this being if your agreement stipulates that the loan will run for a minimum number of terms. If you choose to break the agreement there will be a penalty and you will have to pay all due interest up to the minimum term.

  • What happens if I’m late or think I will be late in making a repayment?
    • If you think you may be late with a payment or are experiencing financial difficulties then speak to either the Sponsor or call us at ThinCats to discuss the position at the earliest opportunity.

  • How do I make loan repayments?
    • All loan payments are made via a direct debit from your designated business current account.

The funding process

  • What happens if my loan does not reach its target amount?
    • When applying for a loan you can state a minimum amount as well as a target amount, and assuming that this amount is reached, we can support that figure. We cannot support loans that do not reach their specified minimum.

  • What information will be available to investors?
    • The investors will have access to the full Information Pack along with supporting information that is provided to the platform by the Sponsors. This may include information (but not limited to) such as: – Financial Accounts, Forecasts, Valuations, Business Plans etc.

  • Can I answer questions from investors?
    • Our Sponsors often answer questions on behalf of borrowers, but if you want to interact with investors directly there is a Q & A facility for every loan listed.

Property Finance


  • What Security does ThinCats accept?
    • For a limited company, the minimum security expected is a mortgage debenture. A debenture creates fixed and floating charges over the present and future assets of the borrowing company. Additional security may be taken in the form of a specific charge over assets such as freehold and leasehold property, a chattels mortgage may also be provided in respect of specific items of plant and machinery.

      The debenture is legally binding and is registered at Companies House, as is a chattels mortgage and certain specific charges. Where appropriate specific charges are also registered at the Land Registry.

      Where a company is part of a group, we will also take cross guarantees from the associated companies, often supported by a debenture over the guaranteeing company.
      In addition, we usually take personal guarantees from the directors of the company. The security taken for each loan is bespoke and appropriate to the nature of the business and is set out in the information pack.

      Please note that should any legal charges or guarantees be taken we reserve the right to insist on independent legal advice being given to the individuals pledging the security.