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Business Offset was the first published offset loan in the marketplace available to businesses from a clearing bank, giving you a unique opportunity when you're considering your clients' funding needs. Whether your client is planning commercial property purchase, refurbishing existing premises or business expansion, our Business Offset puts them in control. It's simple, hassle free and transparent and could give your clients the ability to save thousands in interest, while earning Base Rate on their healthy current account balances.
Price, fees and sometimes commission are all naturally important but, beyond these, our dedicated teams are also committed to going that extra mile for your clients in order to justify your recommendation.
Alternative funding
Business Offset provides an alternative funding solution for:
- Commercial property purchase, refurbishment or extension
- Property development
- Term lending of £100,000+ for other business purposes
Reduce interest or protect cash flow
Business Offset provides totally flexible banking that can match a wide range of your different clients' needs. They can use offsetting to:
- Reduce the term of the loan, potentially saving thousands in interest, or
- Reduce the monthly payment to strengthen cash flow throughout the term of the loan.
Coupled with the ability to react to their cash flow needs, customers can switch between the reduced monthly payment and the reduced term options. Overall the customer is in control.
Further benefits of Business Offset
- Interest at Bank of Scotland Base Rate is effectively paid on all credit balances up to the amount of the linked borrowings. No other high street bank pays Base Rate on current accounts at present.
- Customers can get the full benefit of offsetting by linking more than one Bank of Scotland Corporate current account to a single loan.
- Your clients' cash is never tied up because they can draw some or all the funds from their current account without notice.
- Loan payments can be secured through fixed rates.
Lending criteria
- Minimum loan: £100,000
- Maximum loan: None
- Maximum term: 20 years
- No early repayment penalty
- Part payments permitted, minimum £5,000
- Repayment methods:
- Capital and interest
- Interest only with capital moratorium up to 5 years
- Arrangement fee: 1% (minimum £1,250), negotiable
How Business Offset works
Business Offset works by linking a business current account to a term loan. The current account is set up to calculate interest at Bank of Scotland Base Rate on all credit balances. But, instead of paying interest, we reduce the interest on the term loan by an equivalent amount. Effective interest is only earned on current account balances which are less than the equivalent mortgage balance.
Care must be taken by persons who are not authorised to carry out regulated business. They must not under any circumstances continue discussions with customers whose lending requirements fall within the Financial Services Authority Mortgage Regulations.
IntroducerWeb – register now for our new online service
IntroducerWeb is a new online system that allows you to register and then submit commerical mortgage applications for your clients. By uploading the supporting documentation with the online application, we can begin processing straight away. This will reduce the time taken to deal with each proposal, therefore accelerating the upfront deal decision.
With 24/7 access to IntroducerWeb, you can use the system at your convenience to track existing and historic applications as well as commission. The system will also give you a detailed status report for each pending drawdown application and what needs to be done next. Visit our online demo on IntroducerWeb to see the benefits it can bring to your business.
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