Self-funded commercial lenders, such as Onyx, operate in a manner similar to high street banks in terms of their lending processes, terms, and risk appetite. The key distinction, however, lies in the fact that they lend from their own capital reserves. This independence shields them from market rate fluctuations, such as changes in SONIA or the Bank of England base rate. As a result, they have the flexibility to set their own terms and charges, which are then passed on to their customers.

The UK lending market encompasses a wide range of lender types, from high street banks to alternative financing providers. First-tier lenders typically include traditional high street banks. Second-tier lenders are often merchant banks and building societies that function outside the scope of institutional lending. Third-tier lenders, like Onyx Money, are specialist providers that can include both regulated and unregulated entities. Fourth-tier lenders consist of private lenders with smaller commercial operations, while the fifth and final tier comprises private investors, such as High Net Worth (HNW) individuals. Explore a more detailed breakdown of these various financial lender categories.

Regulated loans, monitored by the Financial Conduct Authority (FCA), are typically utilised for residential mortgages and smaller, consumer-oriented property investments. These loans provide a high degree of consumer protection, enforce strict lending criteria, and ensure transparency in terms. Conversely, unregulated loans are not bound by the stringent rules of the FCA. They are often used for commercial real estate, large-scale property developments, or investment purposes, offering greater flexibility but with less regulatory oversight. Learn more about Regulated and Unregulated Borrowing.

The Bank of England Base Rate, often referred to as the Bank Rate, is designed to influence market interest rates and maintain low and stable inflation.

The Monetary Policy Committee (MPC) meets regularly to evaluate the state of the economy and take necessary monetary policy actions to achieve the government’s inflation target, set at approximately 2%.

This can result in changes in the base rate, whether an increase or decrease, which has a direct impact on the interest rates offered by high street banks and other lenders. Discover more about the Bank of England Base Rate explained.

Development finance offers the capital needed to fund expenses related to land acquisition, construction, materials, labor, and other costs involved in developing or renovating residential and commercial properties such as houses and flats. The amount of funding available depends on the lender. For instance, Onyx provides loans of up to 75% of the gross development value, which can be used to cover both purchase and construction costs. Learn more about what property development finance can be used for.

Bridging loans are short-term funding solutions designed to cover the gap between purchasing or renovating a property and either selling it or securing long-term financing, such as a mortgage. These loans are usually secured against the property, giving lenders added security while providing borrowers with the flexibility they require. Find out how a bridging loan works.

Asset finance is a loan typically used to acquire high-value items, such as equipment, that a business needs to expand but cannot afford to purchase outright. Even businesses with the capital to buy assets may use asset finance to spread costs over time.

Depending on the arrangement, businesses can use their own assets—such as machinery, vehicles, or equipment—as security for the loan. Once the asset is purchased, the business repays the financer through regular payments over an agreed term. Ownership of the asset may transfer to the business either gradually or at the end of the agreement, depending on the scheme. Asset Finance with Onyx Money.

In essence, any resource or object that holds value and can be converted into cash qualifies as an asset. Assets can be owned by governments, organisations, businesses, or individuals, helping them enhance their operations or generate income. Explore a detailed breakdown of the different type of Asset Finance

Corporate loan due diligence is a thorough process aimed at evaluating the risks linked to a loan application. It involves a series of checks to confirm the legitimacy, financial stability, and project viability of the borrowing entity as well as the individuals involved.