Non status commercial finance does not take the status of the borrower into account, so credit history or details of income are not required. It is not the same as sub-prime or "self-cert" lending, where adverse credit is considered or the borrower is free to state their own income without proving its authenticity. A genuine non status lender will not require any confirmation on the borrower's financial background because it doesn't matter. The loan in non status cases is secured against the borrower's property and therefore that security negates the need for financial assessment. In addition to this some funders are able to take an associated 2nd charge over an additional property if necessary. Many lenders in this sector are regulated by the Financial Services Authority (FSA) to ensure fair practise.

Ideal for:
Borrowers who require commercial finance but have a poor credit history, or are unwilling to provide proof of income or business accounts may find non status finance a good solution.

Security requirements:
Non status finance is secured against the value of the property security. The value of the property will need to support the value of the loan based on the lenders criteria.

Advantages:

• Lending is based purely on property security, meaning that borrowers with poor credit history can still obtain the loan.
• Flexible and imaginative underwriting process with no template or "tick-box" procedure. Each case is judged on its individual merits.
• Start up businesses with no evidence of income can obtain the finance they require, and then refinance with a mainstream lender when accounts can be provided.
• Non status lending can be used to refinance existing borrowings in order to prevent a person becoming bankrupt.
• Because no status enquires are required, the loan can usually proceed much more quickly than via conventional routes.

Disadvantages:


• Due to the higher risk involved with non status lending, interest rates are higher.

Key UK providers


• Specialist Lenders