The Loan
Who can borrow from FloFund?+
UK limited companies trading for two years or more, profitable with positive free cash flow, typically with turnover of £1m or more (our minimum is £800,000). The directors or the company must own property in England or Wales with real equity, such as a home with a modest mortgage or commercial premises.
How much can I borrow, and for how long?+
Loans range from £50,000 to £350,000 over 6 to 24 months. The loan is fully repaid by the end of the term through fixed monthly instalments.
What can the loan be used for?+
Any specific, short-term business need that the loan will clear within 6–24 months. Common uses include buying stock for a contract, discounted stock purchases, building up ahead of a seasonal peak, covering slow-paying customers, and consolidating stacked unsecured or revenue-based finance into one monthly instalment. For private healthcare practices, we also fund refits, expansion, partner buyouts and practice acquisitions, and packages combining fit-out, equipment, software and working capital. We don't lend to cover ongoing losses.
What is the interest rate?+
A flat rate of 1.00%, 1.17%, 1.33%, 1.50%, 1.67% or 1.83% a month, set by our risk assessment and confirmed in the decision in principle. It's fixed for the whole term and charged on the original loan amount, so £100,000 at 1.50% a month costs £1,500 in interest each month.
What does a "flat rate" mean?+
Interest is calculated on the original loan amount and charged for the full term. It doesn't reduce as you repay capital. Each month you pay an equal share of the capital plus a fixed interest amount: monthly instalment = (loan ÷ term in months) + (loan × monthly flat rate). For example, a £100,000 advance becomes a £102,000 loan once the 2% arrangement fee is added. Over 12 months at 1.50% a month flat that is £8,500.00 capital plus £1,530.00 interest, so £10,030.00 a month and £120,360 in total.
Are there balloon or interest-only payments?+
No. Every FloFund loan is fully amortising, with fixed monthly instalments and no balloon payment at the end.
What security is required?+
Every loan is secured on a specific property in England or Wales: a first or second charge on commercial property, or a second charge on residential property behind the existing mortgage, up to 85% LTV including existing charges. We may also take a debenture or a cross-company guarantee where the case calls for it.
Do I need to give a personal guarantee?+
Yes. Every executive director, and every shareholder with 25% or more, gives a personal guarantee, covering at least 51% of the shares in total. Everyone giving a guarantee or a charge takes independent legal advice before signing.
What fees are there?+
Our arrangement fee is 2% of the advance. It is added to the loan rather than deducted, so your business receives the full amount, and interest and repayments are calculated on the total loan including the fee. Your broker may charge a fee of up to 5.5% of the loan amount (max £15,000 per loan), either upfront, as a share of up to 5.5% a year included in your monthly instalments, or a combination of the two. Any third-party costs, such as valuation and legal fees, are set out before you commit.
How quickly can I get the money?+
We give a decision in principle within 48 hours, and funds are typically released within ten days of that, once the valuation and legal work are complete.
PaymentSnooze
What is PaymentSnooze?+
PaymentSnooze is the snooze button built into every FloFund loan. Like snoozing an alarm, it lets the business skip a monthly instalment when cash is needed elsewhere, with no renegotiation. The skipped instalment moves to the end of the loan. Businesses use it to keep cash working for them: stocking up for a busy season, taking on a big order or waiting for a large invoice to land.
How often can I use PaymentSnooze?+
Up to two instalments in each 12-month period, taken together or separately. That's up to four on a 24-month loan. Loans of 6–8 months can use PaymentSnooze once.
When can I start using PaymentSnooze?+
After just three instalments: once your first three instalments have been paid on time and your account is up to date.
How do I hit snooze?+
Just let us know at least 10 working days before the instalment is due. We won't collect that instalment, and we'll confirm your updated schedule.
What does PaymentSnooze cost?+
One month of flat interest for each instalment you skip, spread equally over the instalments left in your original term. The skipped instalment itself is paid at its normal amount at the end. On a £100,000 advance (£102,000 loan including the arrangement fee) over 12 months at 1.50% a month, skipping month 6 means £10,030.00 in months 1–5, nothing in month 6, £10,285.00 in months 7–12 and £10,030.00 in month 13: £121,890 in total instead of £120,360.
Does a PaymentSnooze month count as a missed payment?+
No. PaymentSnooze is a built-in feature of your loan, so a PaymentSnooze month used within the rules is never treated as a missed payment.
Can I carry PaymentSnooze months over, or skip my last instalment?+
No. Your allowance resets for each 12-month period, the final instalment can't be skipped, and PaymentSnooze isn't available while an account is in arrears.
For Brokers
Do you accept direct borrower applications?+
No. FloFund is a broker-only lender. All cases must be introduced by a professional commercial finance intermediary. If you run a business and are looking for finance, please speak to a commercial finance broker who can introduce your case to us.
How are brokers paid?+
You choose, up to a maximum of £15,000 per loan. Option A: an upfront fee of up to 5.5% of the loan amount, charged by you to your client. Option B: a revenue share of up to 5.5% a year on the loan amount, paid by your client in the monthly instalments and passed on to you by FloFund. Option C: a combination of the two. Our 2% arrangement fee is separate and deducted from the advance.
What documents do you need?+
Last filed accounts; management accounts since the last filed accounts, no older than six months; six months' business bank statements (12 months for seasonal businesses); details of all existing finance, including revenue-based and unsecured facilities; the HMRC position, including any time-to-pay arrangement; a statement of assets and liabilities from each guarantor; and the security property address, estimated value and any existing mortgage. On request, we may also ask for aged debtors and creditors. For loans over £150,000 we also need VAT returns for the last 12 months.
How quickly do you respond to cases?+
We acknowledge every new case within 4 business hours and issue a decision in principle within 48 hours. Every decision in principle is backed by a desktop property check and includes the rate tier offered, so the terms you take to your client hold through underwriting.
Which cases are not a fit?+
At the moment we don't lend to construction and building contractors (including HVAC installers), thin-margin hospitality and general retail (independent pharmacies are welcome), businesses with a quiet period of more than about three months, companies trading for less than two years, or property development and property investment companies. We also don't lend to gambling, adult content, crypto-asset or arms businesses, or to consumer or payday lenders; to cover ongoing losses; to companies in an insolvency process; where a director is disqualified or has been bankrupt in the last six years; or where a director's home is the only real asset and the equity is thin.
Who can introduce business to FloFund?+
Professional commercial finance intermediaries. You don't need to register before introducing your first case, but registering on our For Brokers page gets you a named underwriter contact and our product sheet.
Managing Your Loan
What happens if I miss a payment?+
We'll be in touch the same or next working day to understand why. If you can see a tight month coming, tell us early: with 10 working days' notice and an up-to-date account, you can use PaymentSnooze instead.
Is the rate fixed for the whole term?+
Yes. Your flat rate is fixed for the full term, whatever happens to the Bank of England base rate, so your instalment only changes if you choose to use PaymentSnooze.
Are loan repayments tax deductible?+
The interest element of your repayments is generally a deductible business expense, reducing your company's taxable profit. The capital element isn't. FloFund doesn't give tax advice, so please ask your accountant about the tax treatment of your loan, including the arrangement fee.
Regulation & Compliance
Is FloFund regulated?+
FloFund provides commercial loans to UK limited companies for business purposes only. We don't lend to consumers, and our loans are not regulated by the Financial Conduct Authority. We still carry out full identity and anti-money laundering checks on every case, and set out every term and fee clearly before a borrower commits.
What AML/KYC procedures do you follow?+
FloFund complies with the Money Laundering Regulations 2017 and the Proceeds of Crime Act 2002. All borrowers and directors undergo electronic identity verification, PEP and sanctions screening, and source of funds/wealth checks.
How do I make a complaint?+
Please email us at complaints@flofund.co.uk. We'll acknowledge your complaint within 5 business days and aim to resolve it within 8 weeks. If you're unhappy with how it's being handled, you can ask for it to be escalated to our Complaints Manager at any point before our final response.
