The LDF Group of companies act as both a funder and commercial finance broker who assists business customers, including limited companies, partnerships and professional individuals in obtaining finance. LDF’s aim is to provide appropriate funding options to suit our customer’s business needs.
As part of our business, we carry out the following activities:
LDF Operations Limited will typically introduce clients to an LDF Finance Company for consideration. The LDF Finance Companies focus is on supporting SME’s, corporates and professional practices through the provision of competitive hire and credit agreements.
However, if a client’s requirements sit outside our credit or risk appetite we will source finance for client via an appropriate member of our funding panel.
As a credit intermediary, we maintain a panel of lenders who are:
With over thirty years’ experience of the market place, we consider ourselves well placed to identify, provide and source the most appropriate funding for our clients.
As both a funder and credit intermediary, LDF has due regard for the FCA’s Principles of Business, its regulations and guidance and the business strives to satisfy these through its operational practices. LDF ensure that customers are provided with clear and transparent communication throughout the transaction process and where possible, try to avoid multiple contact and correspondence with the customers which may cause unnecessary confusion.
LDF will make an internal assessment as to the likely cost of credit or hire. Although any quotation provided is an accurate reflection of this assessment at the time of publication, it is subject to full underwriting and fluctuations in interest rates, terms fee, facility type and other factors which may be unforeseen at this initial stage.
Acting as a Credit Broker
LDF Operations Limited will always consider whether it is able to fund a proposal within the LDF Group first, before considering funders. We aim to provide competitive finance option(s) to our clients, coupled with a high level of customer service and a relevant product range.
If the proposed transaction sits outside the scope of LDF’s credit or risk appetite, then we may introduce your proposal to an alternative funder. This means sourcing the most suitable funding option available, considering the specific circumstances of the transaction, including but not limited to:
When acting as a credit intermediary, LDF act entirely independently in sourcing credit from our panel of funders and are committed to ensuring that all applications for credit are placed with the most appropriate funder for a transaction.
Where LDF acts as credit broker, we may receive a commission payment for effecting this introduction, equally, if the deal has been introduced to LDF by way of a referral, LDF may choose to pay some of its commission to this referring party.
It is important that you provide accurate information on your application and disclose all relevant information that would reasonably be considered to have bearing on any credit decision, including but not limited to:
When sourcing available credit, LDF does not make multiple proposals (“multi-prop”) transactions to multiple funders; only one funder will be approached at any one time and only when this funder has declined the prospective transaction will LDF approach an alternative funder, who they consider to be the most appropriate. The reason that LDF operate in this way is to ensure that the number of credit searches carried
out against prospective customers is minimised.
Whilst LDF does not “multi-prop”, if it is necessary to split a large transaction into smaller amounts to obtain funding, LDF will only propose the smaller transaction amounts to one set of funders at any one time.
If a finance application is accepted, LDF will notify you of the acceptance and any accompanying terms and conditions.
Acceptances are valid for a limited period and a further application will need to be submitted for consideration if this period lapses.
LDF and its funding panel reserve the right to withdraw an acceptance at any time if they become aware of any information that adversely affects your financial status. LDF may execute documents via manual or electronic signature.
LDF will endeavour to keep you updated with regards to the progress of your application for finance. Where we decline a proposal, or receive notice of a decline from a funder, we shall contact you and inform you of the decision.
It is important that the finance product that we provide for you is suitable for your requirements. We will only consider finance for equipment being acquired for the benefit of the business and therefore will not facilitate any personal lending or hiring.
Whilst we will endeavour to understand your needs and assist you in looking for an appropriate product, we would encourage you to use the information below to ensure that the facility that LDF provides or arranges for you is suitable.
If you require further information you should seek advice from your accountants or other professional advisors (please note that LDF do not provide advice on these matters).
There are two main types of lease, an Operating Lease and a Finance Lease.
Both leases involve the hire of equipment and may also be known by other names such as Lease Rental, a Rental Agreement or a Minimum or Fixed Term Hire Agreement.
At the end of the lease
What happens at the end of the primary lease period will vary and depends on the actual agreement, but the following options are possible:
If upon terminating the lease you would like to acquire ownership of the equipment this can usually be arranged by LDF following the payment of an appropriate fee.
LDF typically use a Minimum Term Hire Agreements which means all the options detailed above would be available to you. We will write to you nearer to inform you of the impending end of your primary period and advise you as to the appropriate next steps. It is important that you take action following receipt of the letter as otherwise a secondary period of rentals will automatically begin.
Hire Purchase is also known as a Lease Purchase or HP. Hire Purchase is a loan or contract that is linked to a specific equipment purchase and is a way of obtaining the use of an asset before payment is completed.
The payments of the HP are in regular (typically monthly) instalments which includes a capital repayment plus interest followed by an option to purchase fee at the end of the term of the agreement. Ultimately by making these payments the customer will obtain ownership of the asset. The payment of the VAT is required upfront, at the beginning of the agreement.
At the end of the lease
Ownership will pass to you once an option to purchase fee is paid. The fee varies dependant on the funder but typically ranges from £100 - £250. The fee is disclosed on the HP agreement which you should check before signing and is available on request once the finance has been accepted.
An unsecured loan is money lent from one party to another without any asset to secure its repayment.
Please note: It may be that the actual products available to you are restricted due to the finance purpose, business structure or credit appetite of certain funders. All finance products will typically include a Documentation Fee which is determined by the funder and usually collected with the first payment.
When deciding to proceed with a finance product, it is important to consider some key factors:
When considering costs, always consider the rental and repayment costs, the frequency of this and the total amount that you are being asked to repay. This will help you to compare costs and to ensure that the repayments meet with any budgeting requirements you may have.
The APR on a finance product is one such factor and is calculated on all Credit Agreements (which in LDF’s case are all Loan and Hire Purchase contracts that are regulated by the Consumer Credit Act). Whilst LDF only work with businesses, sole traders and partnerships, borrowing less than £25,000, these customers are still classed as consumers when borrowing wholly or predominantly for business purposes.
If you are a corporate entity, APR is not published on your documentation, however it is always available on request.
Rates from 5.4% APR to 107.7% APR are available.
The amount of interest you are offered by LDF is based upon an assessment being made of your financial circumstances. All lending is subject to status and availability. LDF reserve the right to decline any application for borrowing by a customer. The actual interest rate offered will be calculated based on your financial circumstances.
We could not have been happier. Banks as usual were a nightmare - they took over six weeks to eventually refuse for vague reasons unexplained. LDF were professional, helpful, friendly, and best of all, fast.