Mercantile Trust: products, terms and eligibility

Mercantile Trust is a UK provider of secured business loans. The legal entity named on its site is Mercantile Trust Limited, company number 07023863. It is based in Watford, Hertfordshire. It gives its founding year as 2016. It is part of Norfolk Capital Group.

Mercantile Trust says it was established in 2016 as part of Norfolk Capital Group, which it says has operated in financial services since 1988. It describes itself as a direct lender that works with individual borrowers and intermediaries. Its postal address is in Watford, Hertfordshire and its registered office is in Norwich, Norfolk. It states its products are not regulated by the FCA, and says it holds FCA reference 732016 and is a member of the Bridging & Development Lenders Association (BDLA) and the National Association of Commercial Finance Brokers (NACFB).

Everything on this page comes from what Mercantile Trust publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Mercantile Trust publishes 2 products for UK businesses. The table above gives the amounts and terms as it states them.

• Homeowner business loan: Pay monthly or at the end of the term; second charge only.
• Buy to let business loan: First or second charge; repayment pattern not published.

Homeowner business loan

Loans of £25,000 to £500,000 up to 75% LTV, secured as a second charge on a residential property that already has a mortgage, so the existing mortgage stays in place. The minimum property value is £75,000. Bridging and term options are available, and interest can be paid monthly or at the end of the term. Funds must be used for business or investment purposes. Personal and limited company applications are considered.

Buy to let business loan

Loans of £10,000 to £500,000 up to 75% LTV, secured on buy-to-let property with first and second charge options. Mortgage terms run from 36 to 360 months. Property types include holiday lets, HMOs, multi-unit freehold blocks and student lets. Funds are for business or investment purposes only, and personal and limited company borrowers are considered.

Mercantile Trust says its finance is used for:

• Buying commercial premises
• Buying stock
• Covering operating costs and cash flow
• Hiring staff and business expansion
• Relocating a business
• Consolidating expensive business borrowing

Mercantile Trust publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• Personal and limited company applicants considered.
• Borrowing for business or investment purposes only.
• Homeowner loan: main residence with an existing residential mortgage, minimum property value £75,000.
• Buy to let loan: security can include holiday lets, HMOs, MUFBs and student lets.
• Properties in England, Wales, Scotland and Northern Ireland.
• States adverse credit is considered.

Mercantile Trust describes its process like this:

1. Submit an enquiry online or by phone.
2. Receive an initial lending decision after manual underwriting.
3. A property valuation is instructed.
4. Legal work is completed.
5. Funds are released.

Information it says it asks for:

• Two to three years of financial statements (profit and loss, balance sheet)
• Business and personal credit reports
• Collateral details
• Company legal documents (registration, articles)

Every application is subject to status and the lender’s own criteria at the time.

A secured business loan is borrowing backed by a charge over property or other assets. Security can mean a larger loan or a longer term than unsecured lending, but the asset is at risk if repayments are not kept up.

Lenders value the security and usually lend up to a set share of that value, so allow for valuation and legal work. Read how to compare business loan lenders before weighing a secured offer against an unsecured one.

Points Mercantile Trust publishes that are worth knowing:

• Loans are secured on property and the site warns it may be repossessed if repayments are missed.
• Homeowner business loan is a second charge behind the existing mortgage.
• Its loan products are stated as not regulated by the FCA.
• States it does not charge upfront fees.

Security and guarantees

Homeowner loans are secured as a second charge on a residential property that already has a mortgage. Buy to let loans are secured on the buy-to-let property, as a first or second charge. Mercantile says no early repayment charges apply to selected products, so check the product.

Mercantile Trust’s site states: “Mercantile Trust is registered in England No: 07023863. FCA reference number: 732016 Our loan products are not regulated by the Financial Conduct Authority. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of secured business loans with profiles here include Nationwide Finance, RAW Capital Partners and Time Finance. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.