Terms of Business

Thank you for providing Millbrook Business Finance Ltd with the opportunity to arrange finance for your business. We look forward to welcoming you as a customer and promise to provide you with the best possible service both now and in the future. These Terms of Business explain factors that you ought to consider before entering a finance product and signing the finance agreement.

This letter provides you with important information about the terms upon which our credit broking services and facilities to apply for credit are provided. Where we act as a broker, we will approach our third-party funding partners to see whether they are able to fund your facilities. Please note we make no charge to you for these services, but we will receive a commission, as detailed below, and we do not provide any kind of advice or recommendations to you as to the suitability of any one product. If you wish to receive personal advice or recommendations, you must seek this independently. We will provide you with details of available financing options that reflect the requirements you present to us, from which you can an informed decision. There may be other finance products available in the market with other funders and you should make your own enquiries before you decide whether the products, we offer to you are right for you.

Please also note; we rely on the information and disclosure you provide to us, to identify possible funders that may provide the financing you are looking for. It is important that you provide us with accurate and relevant information as failure to provide accurate information could lead to us introducing you to a lender whose products are not potentially suitable for your circumstances. If you do not provide us with correct information or information is not disclosed and later comes to light, this could also result in the funder refusing to fund or re-terming any offer they may make. We cannot guarantee that funding will be available as this is solely at the funders’ discretion and they will provide relevant details of their lending terms in any offer made.

1. CLIENT IDENTIFICATION (FRAUD PREVENTION) AND CREDIT REFERENCES

1.1. The Firm and our funders are subject to Anti-Money Laundering and Know Your Customer regulations which require us to have formal, satisfactory evidence of the identities and addresses of our clients before any offer for finance can be made. We will always comply with our legal obligations, and therefore may require you to supply documentary proof of your address and identification. As is industry standard, we may carry out online e-verification checks against the documents provided which may leave a ‘soft footprint’ on your credit file.

1.2. Where you have applied for credit or where we have agreed to provide credit to you, we and/or our funders may from time to time make searches of your record at a credit reference agency (‘CRA’) Periodic search at CRAs to may also occur to assist us / our funders to manage your account.

1.3. You hereby consent to the processing of your personal data in this manner and warrant and confirm that if you are a joint applicant, such as a partnership, unincorporated association or if you are a body corporate, such as a limited company or LLP or charity, you have obtained specific and relevant consent and authority to authorise us and/or our funders to create an identity search against any partner/trustee/officer/director/ shareholder or beneficial owner (as so required) at the credit reference agencies. If the beneficial owners of your business are not the partners or directors of your business, you hereby confirm that you have notified the beneficial owners that we will also conduct due diligence checks on them to prevent fraud and money laundering.

1.4. Your record includes searches made and information given by other businesses. Details of our searches will be kept by the agency and will be seen by other organisations that make searches with the agency for the purposes of credit assessment, debt recovery, management of your accounts, prevention of money laundering and fraud, and statistical analysis.

1.5. We will continue to exchange information about you with CRAs while you have a relationship with us. We will also inform the CRAs about your settled accounts. If you borrow and do not repay in full and on time, CRAs will record the outstanding debt. This information may be supplied to other organisations by CRAs.

1.6. The three main credit reference agencies (“CRAs”) in the UK (Callcredit, Equifax and Experian) have produced a Credit Reference Agency Information Notice which explains how these agencies use and share personal data which they receive about you. The identities of the CRAs, and the ways in which they use and share personal information, are explained in more detail at www.equifax.co.uk/crain.

1.7. Our Privacy Notice contains further information about how we collect, use and disclose personal information about you. The Privacy Notice also provides full details of your rights and how you can exercise them, including our retention periods.

2. STATUS DISCLOSURE

2.1. Millbrook Business Finance Ltd, registered at 22-24 Harborough Road Kingsthorpe, Northampton, United Kingdom, NN2 7AZ (Company Registration number 12800659). We are an appointed representative of ASSET FINANCE SOLUTIONS (UK) LTD (09227443), who are regulated and authorised by the Financial Conduct Authority (“FCA”). Millbrook Business Finance Ltd is a credit broker not a Lender. The FCA regulates financial services in the United Kingdom, and you can check our authorisation and permitted activities on the Financial Services Register by visiting the FCA’s website (https://register.fca.org.uk/). Millbrook Business Finance Ltd has due regard for the FCA’s Principles of Business, its regulations and guidance and the business strive to satisfy these through its operational practices. Millbrook Business Finance Ltd does not operate in the consumer finance market. For more information on who we are please visit www.millbrookbusinessfinance.com.

2.2. Lease, Loan and Hire Purchase Agreements with sole traders, partnerships with only 2 or 3 partners and / or unincorporated associations are likely to be regulated by the Consumer Credit Act 1974 unless (i) the total credit or rentals (including VAT) payable over the minimum term is £25,000 or more; and (ii) the goods are wholly or predominantly for business purposes. If you are a “high net worth” individual, your finance agreement might not be regulated. Agreements with incorporated bodies (e.g. limited companies) will not be regulated. If you need any further guidance on your status under the Consumer Credit Act, please do not hesitate to contact us.

3. SCOPE OF SERVICES

3.1. Millbrook Business Finance Ltd acts as commercial finance broker. As part of this activity, Millbrook Business Finance Ltd will typically introduce businesses to the group company, namely Millbrook Capital Ltd, for consideration who will decide if they can support the customer with a competitive hire or credit agreement. If a customer’s requirements fall outside of Millbrook Capital Ltd risk or credit appetite, we will seek to obtain finance through a range of providers across the market and assist those businesses by undertaking preparatory work and submitting finance applications. Millbrook Business Finance Ltd maintain a panel of funders who are reputable and experienced and who can offer products and services which suit a variety of credit strengths and business needs.

3.2. We can introduce you to a number of funders and their finance products which may have different interest rates and charges. We are not an independent financial advisor. We will provide details of products available from the funders we work with, but no advice or recommendation will be made. You must decide whether the finance product is right for you. Whichever Lender, we introduce you to, we will receive commission from them.

3.3. Millbrook Business Finance Ltd may provide a quotation as part of the application process. Any quotation provided is an accurate reflection of this assessment at the time of publication, however it is subject to full underwriting and fluctuations in interest rates, facility fees, facility type and other factors which may be unforeseen at this initial stage.

3.4. For us to fulfil our responsibilities to you, you must (i) read the documentation we give to you and let us know if there is anything that is unclear or that does not represent your requirements; and (ii) comply with the terms and conditions of any agreement we arrange for you.

Lender Selection

3.5. When considering suitable providers of finance, Millbrook Business Finance Ltd will take into consideration the specific circumstances and requirements, including but not limited to:
I. Pricing
II. Requested funding amount

III. Speed of decision
IV. Product Range
V. Credit Strength
VI. Availability of Credit

3.6. Millbrook Business Finance Ltd will endeavour to gain acceptance from a single finance provider where possible, however on occasions, it may be necessary to split a larger transaction into smaller amounts to obtain funding.
3.7. We will keep you updated regarding the progress of your application for finance. You can separately request updates from us at any time.

Commissions

3.8. We will receive commission on lending arranged for you. We are paid commission by funders only if an offer of finance is made by a Lender to you, and you accept and draw down that finance agreement, following our submission to the Lender of a lending proposal.

3.9. The funders we work with will have a range of finance arrangement and will likely have different interest rates and charges.

3.10. The commission we receive is usually percentage based, and the cost of finance will vary in accordance with the commission that we receive. Different funders we work with may provide different rates of commission. The arrangements these funders have for the payment of commissions may be reflected in the rates offered in the finance. We will provide you with confirmation, outlining the secured funding terms and the finalised commission amount as soon as we know.

3.11. In respect of a Credit Agreement (as defined in Article 60B of the Regulated Activities Order (“RAO”)) where you are an individual or ‘relevant recipient of credit’ (as defined in the RAO), if the commission we will receive is of a different nature we will disclose the nature of the commission payable to us when providing a finance offer to you and prior to you entering into any finance agreement.

3.12. If you have been introduced to us by a third party, we may pay commission to that third party for the introduction once you have agreed to and activated the finance agreement. Any commission paid to an introducer is taken from the commission we receive from funders detailed in section 3.8 above and does not increase the cost of the agreement.

3.13. By entering a finance arrangement with a funder, we introduce you to, and by signing that finance agreement and these Terms of Business you confirm your understanding that: You have not been given any recommendation about the suitability of the terms of the finance agreement by us; and Commission will be payable to us/by us. You also acknowledge and accept that if you proceed with any finance we have arranged; you agree to any such commission amount being paid to us.

Data

3.14. Millbrook Business Finance Ltd will only share data with funders that is necessary for the funder(s) to make an offer of funding (Loan, Lease or
Hire Purchase). Millbrook Business Finance Ltd will not share data with funders that is not relevant to a credit application except in the interest of preventing or detecting Fraud, Money Laundering, the financing of terrorism, or any other statutory obligations we may be under. Further details on how we use your information can be found in our Privacy Policy.

4. PRODUCTS

4.1. We provide access to leasing products, hire purchase, commercial loans, MCA, invoice finance and property related finance. More details about specific products can be found in the suitability section below.

Suitability of finance

4.2. When deciding to proceed with a finance product, it is important to consider some key factors:

• Is this the right product?
• How quickly can it be delivered?
• What are their service standards and reputation?
• What rates are available to you?

4.3. When considering costs, always consider the rental and repayment costs, the frequency of this and the total amount that you are being asked to repay. This will help you to compare costs and to ensure that the repayments meet with any budgeting requirements you may have.

Product Suitability

4.4. It is important that the finance product is suitable for your requirements. When deciding whether a product is suitable for you, you should consider how you could fund the purchase of assets. This may be:

• Outright purchase
• Loan facility
• Raise new capital
• Short-term rentals
• Take out asset finance in respect of the asset you have selected at a price you have agreed to. The funder will purchase the asset(s) from the supplier(s) and you will then take the asset on hire / lease from the funder.

4.5. Whilst we will endeavour to understand your needs and assist you in looking for an appropriate product, we would encourage you to use the information below to ensure that the facility is suitable for your requirements. You will not receive advice or a recommendation on which product is most suitable, however details of the products available to you from our lending panel will be provided.

4.6. If you require further information, you should seek advice from your accountants or other professional advisors. For the avoidance of doubt, Millbrook Business Finance Ltd is not an IFA or tax advisor and you should always take your own tax advice from your own accountant or other professional advisors and place no reliance on any information or commentary provided by Millbrook in respect of taxes.

General Considerations

4.7. For both Leasing and Hire Purchase there will be a requirement to insure the assets and to maintain and keep the assets in working order.

4.8. All finance products will typically include a Documentation Fee which is determined by the funder and usually collected with the first payment.

4.9. If a personal guarantee is required, the guarantor will be jointly and severally liable for the full balance of the outstanding debt which they have guaranteed. Any guarantor is advised to seek independent legal advice to discuss their liabilities and obligations thereunder.

Leasing

Finance Lease involves the hire of equipment and may also be known by other names such as Lease Rental, a Rental Agreement or a Minimum or Fixed Term Hire Agreement.
The lessee (customer or borrower) will select an asset which the lessor (the funder) will then purchase from a supplier.
Payment of a deposit is usually required followed by monthly or quarterly payments, with interest payable.
The lessor retains ownership of the asset, but the lessee gets exclusive use of the asset (providing it observes the terms of the lease) giving the customer the benefits without the risks of (economic) ownership.
The lessee will make rental payments for the duration of the lease. The lessee is committed to paying these rentals over the term of the lease and technically, a finance lease is defined as non-cancellable although it may be possible to terminate early by paying the future rentals less a discount.
Asset finance is unlikely to be suitable if you are not sure that the asset will be maintained and kept in usable condition for the agreed period.
At the end of the term, the lessee will not own the asset.
You will have to continue to pay for the asset for the agreed period or settle the outstanding balance early even if you no longer need the asset, or if the asset cannot be used (a small rebate may be offered for early settlement by the lessor). If your finances change and you cannot afford the agreed monthly repayments, you may lose the asset;
You will pay more for the asset overall compared to buying it outright.
You may be able to change the asset funded under your lease agreement although this may lead to higher charges being incurred.

Benefits of Leasing

4.10. There are several benefits of leasing to finance new or used assets / equipment, and we have listed some of these below. Of course, we recommend you seek independent professional advice if you wish to understand in more detail the benefits and how they may apply to you:

Available on nearly all equipment.
Spreads the cost of the purchase;
Interest rate and payments are fixed throughout the term so that you can plan your finances;
Leasing enables you to acquire equipment for use even if you can’t afford to buy it outright;
VAT is paid on each rental, so you do not need to pay VAT upfront; and,
Potential tax advantages

End of the Lease

4.11. What happens at the end of the minimum lease period will vary and depends on the actual agreement, but the following options are usually possible: continue to rent the equipment; terminate the lease and return the equipment to the lessor.

4.12. Our funder panel typically will use a Minimum Term Hire Agreement which means all the options detailed above would be available to you. We may write to you and the funder may write to you near the end of your minimum term to inform you of the impending end of your minimum term period and advise you as to the appropriate next steps. It is important that you act following receipt of the letter as otherwise a secondary period of rentals will automatically begin.

4.13. Depending on our agreement with your funder, we may be able to assist you in acquiring ownership of the hired asset following the payment of an appropriate fee. This fee usually equates to no more than the equivalent of 3 monthly payments of the original lease agreement. Details will be provided to you at the end of your minimum term period and details can also be provided to you upon request before this.

Hire Purchase

Hire Purchase is a credit agreement linked to a specific equipment purchase and is a way of obtaining the use of an asset before payment is completed.
The lessee (customer or borrower) will select an asset which the lessor (the Lender) will then purchase from a supplier.
The payments of the Hire Purchase are in regular (typically monthly) instalments which includes a capital repayment plus interest followed by an option to purchase fee at the end of the term of the agreement which will give the customer ownership of the asset. The payment of the VAT is generally required upfront, at the beginning of the agreement (by way of payment of a deposit).
Asset finance is unlikely to be suitable if you are not sure that the asset will be maintained and kept in usable condition for the agreed period.
The lessor retains ownership of the asset, until the lessee exercises its option to purchase.
You will pay more for the asset overall compared to buying it outright.
You will have to continue to pay for the asset for the agreed period or settle the outstanding balance early even if you no longer need the asset, or if the asset cannot be used (a small rebate may be offered for early settlement by the lessor). If your finances changes and you cannot afford the agreed monthly repayments, you may lose the asset.
The lessee will make rental payments for the duration of the hire. The lessee is committed to paying these rentals over the term of the agreement, although it may be possible to terminate early by paying the future rentals less a discount plus other amounts outstanding under the Agreement.

Benefits of Hire Purchase

4.14. There are several benefits of using hire purchase to finance new or used assets / equipment, and we have listed some of these below. Of course, we would recommend you seek independent professional advice if you wish to understand in more detail the benefits and how they may apply to you.

Spreads the cost of the purchase of the asset
Interest rate and payments are fixed throughout the term so that you can plan your finances;
In some instances, you can pay off a larger sum or “Balloon Payment” at the end of the term which could reduce monthly rentals.
Hire Purchase enables you to acquire assets even if you can’t afford to buy them outright;
Confirmed title to the goods; and
Potential tax advantages

End of the Hire Purchase Agreement

4.15. Ownership will pass to you once an option to purchase fee is paid. The fee varies dependent on the Lender and is disclosed on the Hire Purchase agreement which you should check before signing. The asset could also be returned to the lessor if the option to purchase is not exercised.

Unsecured Loan

An unsecured loan is money lent from one party to another without any security over a specific asset to secure its repayment. Note, a personal guarantee is not considered security, and may be required with an unsecured loan by a Lender.
The finance company advances funds to the customer for a specific purpose.
The customer must make the agreed regular payments for the term of the agreement that cover the cost of the funds advanced plus interest.
The customer can terminate the agreement at any time by giving notice to the finance company and paying the balance of the agreement (which may be reduced by a rebate).

The Benefits of An Unsecured Loan

4.16. There are several benefits of using an unsecured loan facility, and we have listed some of these below. Of course, we would recommend you seek independent professional advice if you wish to understand in more detail the benefits and how they may apply to you:

Funding can be used to fund a wide variety of purposes without the requirement for security of a specific asset.
Spreads the cost of expenses.
Certain products available could be restricted due to the finance purpose, business structure or credit appetite of certain funders; and
If you have used a loan to fund the acquisition of goods or equipment, you will own the product from the outset, you should consider how long you expect to use the assets for.

At the end of an Unsecured Loan

4.17. If you have used the loan to purchase any assets or equipment, you will retain ownership of the same at the end of an unsecured loan term and nothing further will be payable. If you have used the loan for working capital, at the expiration of the loan term nothing further will be payable.

Points to consider with an Unsecured Loan

4.18. An Unsecured Loan may not be suitable in certain circumstances. You should be aware:

You may have limited access to funders as a material number of our funders do not offer unsecured Loan products.
You will not be able to benefit from the tax advantages which may be available to you if using asset finance (leasing); and
You will incur additional expenses compared to the use of available cash.

5. CUSTOMER CHECKLIST

5.1 We recommend that customers taking out business finance agreements follow these steps:

I. Read your business finance agreement carefully before signing it. Never sign a business finance agreement which is not fully complete. Retain copies of all documentation.

II. Ensure that the final contract:
a. corresponds with any verbal or written quotation on the rental amount and period of hire;
b. accurately reflects what you are agreeing to pay for, including any maintenance or services included in the repayments;
c. accurately describes the asset you are expecting to receive (e.g. whether it is new or used) and that its working life is appropriate to the length of the finance agreement.

III. Make it clear who has the authority within your own organisation to sign the agreement.

IV. Make sure you understand and agree with all terms and conditions of the business finance agreement and, if you are unsure, ask for these to be explained or seek advice.

V. Make sure you understand all the costs involved and whether these will change during the business finance agreement.

VI. Check that the supplier of the asset is reputable and a bona fide supplier.

VII. Understand whether there are any notice period or settlement terms required to terminate the agreement.

VIII. If there is a maintenance or service contract which is separate to the finance agreement, check that the length, start date, notice period and settlement terms of the two agreements is the same, and if not, that you are happy with this.

IX. If the name of the leasing company contracting with you is not shown on the agreement, ensure that you are informed at the earliest possible time.

X. Check whether the Lender is a member of the FLA, as all asset finance members adhere to the FLA Business Finance Code.

XI. If any amendments are made to the business finance agreement or a further agreement is required to replace an existing agreement, do not sign it until you have made the same checks as you did for the original agreement.

XII. If a new business finance agreement includes an element of refinancing from a previous agreement with a different provider, check that the settlement figure provided by the former provider matches the refinancing figure used by the new provider.

6. COMPLAINTS PROCEDURE

6.1. We see complaints management as integral to providing the best service levels possible and a way to further improve services and systems.

6.2. Your complaint will be fully investigated by Millbrook Business Finance Ltd, and you will be dealt with fairly and promptly.

Complaints Handling Procedure

The following is a summary of how Millbrook Business Finance Ltd deals with complaints:

6.3. Complaints should be managed quickly and fairly. Where possible, complaints will be resolved within 3 business days using the Early Resolution Procedure. For a complaint to be regarded as resolved we must be satisfied that your complaint has been addressed and resolved to your satisfaction. If this is the case, we will close the complaint and provide you with a Summary Resolution letter confirming the details and contact information for the Financial Ombudsman Service should you
subsequently decide that the resolution is not satisfactory.

6.4. If it is not possible to resolve your complaint through the Early Resolution Procedure, you will be sent an acknowledgement in writing as soon as possible, and at the latest after 5 business days. Your complaint will be referred to senior management, who will investigate the complaint promptly, thoroughly, and impartially.

6.5. If your complaint refers to the actions of a third party, that party will be asked to investigate and report back. If this occurs, you shall be notified of this and kept updated. In some circumstances where the third party is solely responsible for the complaint, the complaint will be referred to the third party who will respond directly to you. We will notify you in writing that the complaint has been referred. In these circumstances Millbrook Business Finance Ltd will have no further obligation to deal with your complaint in accordance with its complaint’s procedure

6.6. You will receive a response as soon as possible, and in any event, within 8 weeks of complaint receipt.

6.7. In the unlikely event your complaint remains unresolved within eight weeks; Millbrook Business Finance Ltd will advise you in writing why a final response cannot be provided and when they expect to be able to do so. You may then escalate the complaint by writing to The Complaints Manager, AFS Compliance Ltd, Greenbank Court, Greenbank Business Park, Blackburn, Lancashire BB1 5QB, or calling them on 01254 958 777. If your compliant is unresolved after exhausting AFS’s complaints process, you will be provided with details of the Financial Ombudsman Service. This will enable you, if you wish, to refer your complaint to the Financial Ombudsman Service should you be dissatisfied with the delay or the handling of your complaint.

6.8. Here is how you can contact us should you have a complaint:

By Phone: 0333 015 3301
By Email: enquiries@millbrookbusinessfinance.com
By Post: Complaints Officer
- Millbrook Business Finance Ltd.
  Millbrook House
  8 Brookfield, Duncan close
  Moulton Park Industrial Park
  Northampton
  NN3 6WL

6.9. If you write to us, please include the following details

Your name and address, or the name and address of the complainant if you are complaining on someone else’s behalf and your relationship to the complainant;
Your daytime telephone number (where we can contact you if we need to) and any times you would prefer use to contact you;
A clear description of your concerns or complaint; and
Details of what you would like us to do to resolve your complaint.

Independent Review of your complaint

6.10. Should you be dissatisfied with our final response, you may, if you wish, refer the matter to the Financial Ombudsman Service. Any referral must be made within six months of the date of our final response. The Financial Ombudsman Service provides a free, independent and impartial service for customers to resolve disputes with financial firms.

6.11. The Financial Ombudsman Services say that they will only deal with your complaint if you have given us the opportunity to put matters right, so please contact us first and we will do all we can to help you.

6.12. The contact details for the Financial Ombudsman Service are set out below:

Telephone: 0800 0234 567
Online: www.financial-ombudsman.org.uk
Post: Financial Ombudsman Service
Exchange Tower,
London
E14 9SR

7. PRIVACY NOTICE

The Millbrook Business Finance Privacy Notice which advises You of Your rights in relation to Your Personal Data can be found on the website at the following link https://www.millbrookbusinessfinance.com/privacy-policy. Alternatively, if you require a hard copy of the notice, please email enquiries@millbrookbusinessfinance.com , or call 0333 015 3301.

8. ACCEPTING THESE TERMS OF BUSINESS

8.1. We hope you find the contents of these Terms of Business satisfactory. If so, please could you return a signed copy to us.

8.2. By providing application information and supporting documents, you consent to Millbrook Business Finance Ltd making applications for finance for your business. If you do not want Millbrook Business Finance Ltd to make the applications following the provision of the information or supporting documents, please confirm this in writing to your account manager at the time of provision of the aforementioned information and documentation.

8.3. By this means you are bringing a contract into existence between us and indicating your acknowledgment of, and agreement to, the terms set out or referred to in these Terms of Business and its appendices. If you ask us to provide you with our Broker Services before you have signed this Terms of Business document, all the above stated and any appendices will be treated as applicable to such services.