Pricing policy

In developing our pricing policy of all our rates and fees, we look at a number of factors.

UK subsidy law

The majority of our funds operate under the Commerial Market Operator principle.  This means we can enter into transactions without triggering UK subsidies. 

Gap funder position

As a gap funder and active co-investor, we aim to make sure the prices we charge do not displace the private sector. One of our measures of success is our ability to attract private sector investors such as banks, private equity firms, business angels or institutional investors to invest alongside us.  

Stakeholder requirements

Our pricing is also determined by the stakeholders who invest in our funds. Typically, our funds accept a higher level of risk in our lending than comparable private sector providers. Therefore our pricing is, in part, influenced by the level of risk and the level of defaults we experience.  

Interest rate review 

We carry out regular independent benchmarking to see how our interest rates compare with other loan providers in the market. This is factored into our pricing policy.