Credit Committee

We’re very particular about our Borrowers.  We get to know as much as possible about them and take an holistic view of the person or business/project.  We’re choosy but fair.

Unique process

Folk2Folk undertakes the normal credit enquiries, including credit referencing, status, asset ownership, due diligence and often a personal meeting prior to the loan being deemed suitable.  These enquiries are carried out by Folk2Folk loan officers who have legal and banking expertise. 

But once both the nature of the loan and the Borrower have passed our required internal standards they are passed to our Credit Committee who use their expertise and collective local knowledge to take an holistic view.  This is where we believe we are unique.

Using local knowledge

Our Credit Committees consist of a Valuer, a Solicitor and a Chairman.  The Committee uses collective local knowledge of a person gained from personal knowledge via local accountants, lawyers, or bank relationship managers. These enquiries build an independent background picture of the Borrower, their standing in the community, their length of time in it, and their general reliability.   

An holistic view

By gaining a better understanding of the Borrower we know so much more about the person - their character, their history and their reliability – not just their credit history.  We believe this enables us to better assess potential risk and ensure that the Borrower is capable of taking on and servicing the loan.

Our guiding principles

  • Security for the loan must be in the form of freehold property only
  • The valuation of the freehold property must be a strict bricks and mortar valuation
  • The maximum loan to property value must not exceed 60%
  • The Borrower has to be in good standing both according to computerised credit rating information, but also in the community itself
  • The securitisation of a loan is done by local lawyers who are able to identify local factors that may affect the sense of the lending
  • Borrowers have to be stable, not engaged in meteor-style business ideas, have a freehold to back them up, have a good track record in their community, be known to us or a trusted professional and be able to afford it

Latest News

Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    Initially I borrowed money through Parnalls Solicitors in 2011...
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