Important notice for borrowers

There is no guarantee that you will receive any funds following the submission of a loan application.

By entering into a loan agreement, you are putting your business assets at risk. If you do not make loan repayments in accordance with the terms and conditions of the loan provided to you, all of the funds lent to you may become repayable immediately.

If your loan is secured, your obligations under the loan agreement will be secured by way of a charge or mortgage over the assets of your business (including any investments or property assets). In the event that you fail to make a payment under the loan agreement, your assets will be at risk of seizure and sale.

Reports on Borrowers listed on our site are addressed to lenders. Borrowers are not entitled to rely on these reports and do so entirely at their own risk.

If you are in any doubt about the action you should take or whether you can adhere to our terms of business or your obligations under any loan agreement, you should seek the advice of your solicitor, accountant or other professional adviser.

Important notice for lenders

Lenders must ensure that they are fully aware of the risks involved in lending to any Borrower before they make any loan.

Loans to companies which have yet to generate revenues or which are at an early stage of development (small businesses) are high risk and you may lose all or some of the amount lent if those companies default.

Information provided in respect of Borrowers has been provided by the management of those companies. All views expressed regarding the Borrowers, projections, forecasts and statements relating to expectations of future events are those of the Borrower and its directors and no other person. No representation or warranty is made, or assurance given, that such statements, views, projections or forecasts are correct or that the Borrower's objectives will be achieved.

Information about past performance and opinions stated are given for your assistance, are not to be relied upon as authoritative and no responsibility is accepted by SME Platform Ltd., its directors, partners, officers, employees or agents in respect thereof.

The following risk warnings are not intended to be a complete list of all the risks involved in lending via SME Platform Ltd. If you are in any doubt about the action you should take, you should seek the advice of your solicitor, accountant or other professional adviser.

Loan issues

  1. Loss of capital. The provision of loans to Borrowers involves risk. Even if the loan is secured, there is the potential for default by a Borrower potentially leading to a complete loss of the amount lent.
  2. Illiquidity. Borrowers will generally be small and medium sized unlisted private companies. The provision of loans to companies is highly illiquid as there is no secondary market for the loans.
  3. Financial Services Compensation Scheme. The Financial Services Compensation Scheme or similar arrangements are not available for claims related to Borrower default or the default of SME Platform Ltd.
  4. Tax. You are responsible for your own tax liabilities arising in respect of any loan you make. You should seek independent tax advice before providing loans to a Borrower if you are unsure about the tax consequences.

Risks relating to industry

  1. Competition. Borrowers have competitors in the market and there is no guarantee that the companies will continue to have unique selling points or differentiators.
  2. Resource. It may be difficult to recruit or sub-contract the quantity of people with sufficient calibre required to meet the financial projections provided by Borrowers. This could adversely affect a Borrower's ability to repay its debts.
  3. Operating risks. There are risks associated with managing a rapidly growing business. Even though the directors may have been through this many times, there is no guarantee that all operating risks will be fully covered. This could adversely affect a Borrower's ability to repay its debts.

Risks relating to the companies

  1. Financial Information. Borrowers provide us with information about their structure, governance and principal activities as well as historical financial information and projections. Borrowers are subject to our credit checking process and ongoing monitoring but no third party evaluation of the ability of any Borrower to fulfil its obligations under a loan agreement is carried out.
  2. Management. Unquoted companies typically have small management teams and are highly dependent on the skills and commitment of a small number of individuals. The loss of a key individual can have a significant effect on a Borrower's business and the ability of a Borrower to pay interest and repay loan capital.
  3. Interest payments on debt. While Borrowers may enter into appropriate interest rate hedging arrangements, a rise in interest rates is likely to adversely affect the ability of a Borrower to repay its debts.

For the purposes of these risk warnings, reference to 'Borrowers' are those borrower companies which make applications for loans via the SME Platform Ltd. website.