FAQs

  • Who is behind BS&L?

    BS&L was created and is managed by David Fishwick, a local entrepreneur and businessman. The chief executive officer is David Henshaw, who has over 40 years experience in banking and finance. The branch manager is Chris Woods. The assistant branch manager is Rachel Cowan.

  • When was BS&L established?

    BS&L officially opened its doors in September 2011.

  • What is BS&L?

    BS&L acts as a link between savers and borrows. It has created and innovative peer-to-peer lending scheme that enables people who have struggled to obtain finance from high street banks to obtain affordable loans and offers a good rate of return on repayments of that loan.

  • Is BS&L regulated?

    BS&L holds a consumer credit licence with the Financial Conduct Authority (Licence No. 646136).

    BS&L is regulated by the Financial Conduct Authority as its activities now fall within the regulatory framework for a peer-to-peer lender from 1st April 2014.

  • Are there any requirements for borrowing/lending?

    On application to become a member of our lenders club, you will need to provide us with proof of signature, for example, a driver’s licence or passport, and proof of address, for example, a utility bill, and proof of income, a recent payslip if employed or Bank statement if self-employed.

  • How do I sign up?

    Lenders can sign up in our office or via post. Lenders who attend our office are required to complete a contact detail sheet and provide original proofs at time of appointment.

    If the lending occurs via post, we will post the contact detail sheet to the lender prior to their appointment and they will return it completed along with their original proofs (certified copies will not be accepted).

  • How does BS&L benefit from providing this service?

    BS&L charge an administration fee equal to the difference between the lending rate and the borrowing rate – currently borrowers pay a flat rate of 7.9% (typical 15.4% APR) or a flat rate of 18.9% (typical 37.1% APR), and lenders receive a good return.

  • What happens if BS&L goes out of business?

    The loan agreements are between the borrower and the lender, so in the event that BS&L went out of business, these agreements would continue.

  • How can I contact BS&L?

    You can visit it at our offices, which are at 30 Keirby Walk, Burnley BB11 2DE. Alternatively, you can contact us via e-mail on info@burnleysavingsandloans.co.uk, by phone on 01282 454744 or by fax on 01282 416969.

Lending

  • You can become a member of the BS&L Lending Club.

    This works via the peer-to-peer certificate document.

  • How much can I lend?

    You can lend between £1000 and £30,000. (Maximum £2,000.00 in cash)

  • How long can I lend the money for?

    There are two products currently available; a lending term of 2 years, and a maximum lending term of 5 years.

  • What returns can I expect?

    3% AER for the 2 year product, and 5% AER for the 5 year product.

  • How do I lend my money?

    Following your appointment, you will enter into an agreement with BS&L relating to the membership of the BS&L Lending circle on our standard terms and conditions. This will include details of the amount of money you want to lend and the term over which you would like to lend it. We will then match you with a suitable member of our Borrowers’ Club.

  • Will I know who borrows my money?

    No.

  • How long will it take to lend my money out?

    Lenders will be required to join a waiting list, and will be contacted at the first available opportunity.

  • Once my money has been lent out, when can I get it back?

    You will receive your money after your lending period is over. However, if a lender requires their funds returning either partially or in full prior to the expiry date, they can request the return at any point. However, there will be a charge due on any funds returned prior to expiry. The charges will be 2% for early return on the 5 year option, and 1% on the 2 year.

  • Do I have to pay for you to lend?

    What you pay is the difference between the lending and borrowing rates.

  • Where is my money held?

    Until it is lent out we put your money in a bank account in BS&L’s name with HSBC. This is a normal business clients current account.

  • How safe is my money?

    The principal of all loans are personally guaranteed by David Fishwick so if your borrower defaults BS&L can recover from the borrower but David will personally ensure you get your money back.

  • What happens if a borrower misses a repayment?

    We have an arrears procedure in place and if unresolved will be passed to a debt collection & recovery company for collection.

  • What happens if a payment is late?

    There is no effect on you.

  • What happens in the event of the borrower’s death?

    The loan agreement still stands. Once BS&L have received a confirmation of the borrower’s death and a certified copy of the death certificate, we will give the details of the loan and a settlement fee to the Executor of the borrower’s estate. The debt then becomes part of the estate and payable by it.

  • What happens in the event that I die?

    We will continue to recover repayments and interest earned until we receive a certified copy of the Grant of Probate/Letters of Administrations and await instructions from the appointed personal representatives. Loan Agreements remain in place and all funds would accrue to your estate and be distributed as instructed by the personal representative in accordance with your Will.

  • Do I have to pay tax on the money I earn?

    Returns from lending through BS&L are paid without any tax being deducted. You should declare any interest on gains to HMRC on a self-assessment tax form or inform your local Tax Office.

  • Can a borrower repay early?

    Yes, the borrower is entitled to repay the loan in part or full prior to the stated repayment date. However, the borrower will have to pay a settlement figure based on an actuarial calculation.

Borrowing

  • How much can I borrow?

    Personal loan – minimum £250, maximum £500. Business / Hire purchase – minimum £1000, maximum £10,000.

  • How long can I borrow it for?

    Personal loan – maximum 1 years.
    Business loan – maximum 3 years.
    Hire purchase – maximum 4 years.

  • Can I repay my loan early?

    Yes, you can repay your loan in part or full early. The settlement figure will be calculated on an actuarial basis and you will receive a rebate of interest dependant on the date the loan is settled in full.

  • What rate can I expect to pay?

    Loans are offered with competitive rates of interest from 7.9% flat (typical 15.4% APR) to 18.9% flat (typical 37.1% APR) depending on credit status.

  • I have a bad credit history, can I still become a member of the BS&L borrowing circle?

    Yes. We will need to understand how you will repay the loan. Not repaying the loan means we cannot help others like you.

  • How is the APR calculated?

    APR stands for annual percentage rate. It takes into account the interest and charges payable on a loan and so shows the actual cost of the loan.

  • How are repayments calculated?

    The interest is calculated on a fixed rate per annum between 8.9% flat rate per year (typical APR 17.4%) and 14.9% flat rate per year (typical APR 29%).

  • Will lenders be given any personal information about me?

    Not unless you agree in writing.

  • What happens if I am having financial difficulties and cannot pay?

    If you are worried that you will be unable to make a repayment you must contact us immediately and inform us of the steps of only being taken to remedy the situation. We will try to work out a plan with you to enable you to afford the repayments.

  • What happens if I die?

    The loan agreement will still stand. We will continue to recover repayments and interest earned until we receive a certified copy of the Grant of Probate/Letters of Administrations and await instructions from the appointed personal representatives. Loan Agreements remain in place and all funds would accrue to your estate and be distributed as instructed by the personal representative in accordance with your Will.

  • What happens if the lender dies?

    The loan agreement still stands. Once BS&L have received a confirmation of the borrower’s death and a certified copy of the death certificate, we will give the details of the loan and a settlement fee to the Executor of the borrower’s estate. The debt then becomes part of the estate and payable by it.

  • When will my repayments start?

    Your repayments will usually start one month after the loan is taken out.

  • Do you credit score?

    No, we manually underwrite every application. You obtain a decision from a person, not a computer.