NAME
BUSINESS NAME
ADDRESS
POSTCODE
DATE
Dear NAME
Introduction
You have asked me to provide you with advice on your current Commercial Financial requirements for BUSINESS NAME.
Further to our meetings to discuss your requirements I now set out the reasons for my recommendations, and other relevant details, relating to arranging the required commercial finance for you.
This report is tailored to meet the business’s specific needs and to reflect its current circumstances. This report should be kept with the:
· Commercial Finance Client Agreement and Disclosure Document
· Commercial Fee Agreement
The above documents were given to you during the course of our meetings and should be retained with the offer of finance once it arrives. The advice given was based on the Commercial Loan Fact Find that we completed together.
In this report, I have presented my understanding of the business’s current situation, your aims and objectives. This information provides the basis for my recommendations and suitability report. You should carefully check that the information is correct and note any revisions that need to be made due to any changes in your circumstances.
Please read this letter carefully to ensure my assumptions and advice is in line with the aims and objectives we discussed and agreed, and that you have understood the issues and any risks involved.
Please note that in accordance with your instructions at our first meeting I have only provided advice in relation to your Commercial Finance requirements and have restricted my recommendations to this area of advice at this time.
The Business’s Current Situation
The following information represents a summary of the business’s present position, as I understand it, based upon the details you provided during our previous meetings.
The business’s current situation can be summarised as follows:
Enter free text here – to include (as appropriate)
Sole trader – Limited Company – Limited Liability Partnerships – PLC - etc
Proprietors/Shareholders and % holdings and their experience
Brief background of the business and its operation
Current Bankers
Assets (& liabilities?)
Current commercial finance arrangements
The Business’s Current Objectives
The following information represents a summary of the business’s present objectives.
Enter free text here - fully describe the current finance needs of the business
At our previous meetings you stated the business needs/wants ….. etc
The Business’s borrowing requirements
Purchase Price / £Deposit available / £
Loan amount required / £
Market Value (if different to purchase price) / £
Details of asset(s) to be used as security
Rationale for the loan
Affordability
You have confirmed that the business is able to afford the new finance commitments of £XXX per xxx.
Please note that the business will need to ensure that it is able to continue to meet the new finance repayments throughout the full term.
Please Note
New Leaf Distribution Ltd is regulated and authorised by the Financial Conduct Authority (FCA)
Not all commercial finance and buy to let products are regulated by the FCA.
At your request, my advice was limited to providing you with a Commercial Finance recommendation.
Therefore, advice should be sought from other professionals regarding:
· Potential Corporation, Income and/or Capital Gains Tax Liabilities (Accountant)
· The marketability & management of the property (Letting Agent)
· How this would compare with other forms of investment (Independent Financial Adviser)
Commercial Finance Recommendation
With your Commercial Finance requirements in mind, I undertook research throughout the Commercial Finance market and recommend the following solution.
LenderType of Finance
Assets to be Secured
Loan Amount
Repayment Type
Product & Rate
Term
Survey Fee
Arrangement Fee
Monthly Repayments
Redemption Penalty
Redemption Fee
Conditions imposed by the Lender in its decision to lend
· List all conditions attached to the lending by the lender here (asset protection, life cover, directors guarantees, etc
This solution meets your preferences and priorities for the following reasons:
· List all here
Choice of Lender
You have no stated preference for any particular lender and are pleased to accept my recommendation provided your overall finance requirements are met.
The reason for choosing XXXX was the fact that they were able to finance the amount required based on xxxxxx (list all that apply)
Cost of our Services
The costs of our services are £xxx as detailed in the Commercial Finance Charge Agreement
Fees Added to the Loan
You elected to have the following fees added to the amount you are borrowing:
Survey Fee / £ / Added / Paid up FrontArrangement Fee / £ / Added / Paid up Front
Adviser Fee / £ / Added / Paid up Front
Risk Factors
The security you have provided to the lender is at risk if you do not keep up the repayments required under the finance arrangement.
Interest rates vary from day to day, so my recommendation has been based upon the most appropriate lender at the time of my market place research.
Confirmation
I would like to thank you for seeking advice from ADVISER of BUSINESS NAME
Should you have any queries concerning this report or if you feel any of the above is in any way an inaccurate reflection of your understanding, please contact me immediately.
Yours sincerely
ADVISER
ADVISER TITLE
Page 4 of 4