Momenta Finance: products, terms and eligibility

Momenta Finance is a UK provider of unsecured business loans. The legal entity named on its site is Merchant Money Limited (trading as Momenta Finance), company number 04504897. It is based in London. It gives its founding year as 2013.

Momenta Finance launched in 2013 and trades as Merchant Money Limited (04504897), with a registered office at 3rd Floor, 86-90 Paul Street, London EC2A 4NE. It says it has widened its range to unsecured and secured business finance, bridging loans and development finance. It is authorised and regulated by the Financial Conduct Authority (firm reference 722951) and says it is accredited by the British Business Bank.

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

Momenta Finance publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.

• Unsecured business loan: No fees for early or over repayments.
• Secured business loan: No fees for early or over repayments.

Unsecured business loan

Loans of £50,000 to £350,000 (standard tier) and £350,000 to £500,000 (enhanced tier) over 6 to 84 months, with no collateral required. Standard loans need a personal guarantee from one UK homeowner and enhanced loans from two. Repayments can be made by direct debit, bank transfer, debit card or PayPal, and the lender says overpayments and early settlement carry no penalties.

Secured business loan

Loans of £50,000 to £1,500,000 over 6 to 84 months, secured on collateral such as commercial property or business assets. A personal guarantee is required and at least one director or shareholder must be a UK property owner. Repayments can be made by direct debit, bank transfer, debit card or PayPal, with no penalties stated for early or over-repayment.

Momenta Finance says its finance is used for:

• Working capital
• Business expansion
• Refinancing
• Property or land acquisition
• Asset or machinery purchase
• Staffing and marketing

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

• UK-registered limited company, or LLP with at least one partner that is a limited company.
• Majority (over 50%) of income from trading activities.
• Minimum annual turnover of £350k on latest filed accounts.
• Minimum trading history of 2 years.
• At least one director or shareholder is a UK property owner aged over 18.
• Any CCJs settled or in the process of being settled.

Momenta Finance describes its process like this:

1. Complete the online application form.
2. The team contacts the applicant to gather information.
3. Credit checks are run.
4. The application goes through underwriting.
5. Required documents are uploaded online.

Information it says it asks for:

• P&L and balance sheet (enhanced unsecured loans)
• Recent management accounts (enhanced unsecured loans)
• Statement of personal assets and liabilities (enhanced unsecured loans)
• Consolidated group accounts where applicable

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

An unsecured business loan is a fixed sum repaid in instalments over an agreed term, without a charge over a specific asset. Most lenders still ask the directors for a personal guarantee, which makes them personally liable if the company cannot repay.

Lenders price each loan on the business’s trading history, turnover and credit profile, so the offer you receive can differ from the published range. Compare the total cost in pounds and the repayment pattern, not only the headline rate: our guide on how to compare business loan lenders shows how.

Points Momenta Finance publishes that are worth knowing:

• Unsecured loans need no security but a personal guarantee: 1 homeowner (standard) or 2 homeowners (enhanced).
• Enhanced unsecured loans (£350,000 to £500,000) need recent management information, guarantor statements and borrower calls.
• Secured loans need security (a charge over property or assets) and a personal guarantee.
• Says there is no fee for early or over repayment.
• Lending to limited companies and partnerships is not regulated by the FCA.

Security and guarantees

Unsecured loans need no collateral but require personal guarantees from UK homeowners. Secured loans are backed by collateral such as commercial property or business assets, plus a personal guarantee. The lender says early repayment and overpayment carry no penalties.

Momenta Finance’s site states: “Merchant Money Limited, Trading as Momenta Finance, is authorised and regulated by the FCA in respect of our consumer credit activity. Our lending to limited companies, incorporated partnerships, and unincorporated partnerships of three or more is not regulated by the FCA. Registered in England (Co. No. 04504897) with registered office at 3rd Floor 86-90 Paul Street, London, England, EC2A 4NE.”

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 unsecured business loans with profiles here include Playter, SimplyFunded and STAX. 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.