Loan Terms

Hampshire Trust’s Practice Funding Loan Terms

 

Practice Funding

Costs Advance

Solicitors

VAT/Tax

Funding Type Existing Cases New & Existing Cases VAT and/or Income Tax
Work in Progress Funding Up to 70% of a costs consultant’s      reasonable estimate Up to 70% (of time recorded) N/A
Disbursement Funding See above Normally 100% N/A
Insurance Not applicable Not compulsory N/A
Interest Rate 1% per calendar month 2.5% – 3.5% over Bank of England Bank Rate (minimum Bank Rate 5%) c.8.75% flat
Application Fee None None None
Administration Fee None None None
Set Up Fee None c. £50 per case N/A
Repayment fee Up to £50 None None
Advance Fee None None None
Default Fee 1% interest per calendar month £50 per month None
Facility Fee None 1.5% of facility limit None
Annual Review Fee 1.5% of the facility 1.5% of the facility None
Payment of Interest & Fees Interest monthly direct debit Interest & fees monthly direct debit Capital & Interest monthly direct debit
Payment of Capital End of term or earlier conclusion End of term or earlier conclusion Paid monthly (see above)
Maximum Standard Term 180 days 2 years from first drawdown VAT 3 months,  Tax 6 months
Standard Security Assignment of rights under client agreements.  PGs and debenture (corporate) may be required.  Assignment of rights under client agreements.  PGs and debenture (corporate) may be required.  PGs and debenture (corporate) may be required. 
Drawdowns By signed drawdown and electronic request via web site By signed drawdown notice & electronic request via  web site Payment direct to HMRC on completion

Funding is also available for other case types. Details supplied for use by professional advisors only.  Not for use by members of the general public.  Details correct at the time of publication. Interest rates are variable.  Terms and conditions of facilities, including security, may vary depending upon circumstances.