Terms and conditions for SME lending under the Consumer Credit Act 1974

If we are making the loan to all of you, jointly, we can require any of you to repay it, even if your relationship ends.

How can you use this loan?

  1. You can only use this loan for the purpose of your business.

How and when will we give you the loan?

  1. When you have signed and returned the agreement, we will sign it. The agreement will start on that day and will end when you have repaid everything you owe us.
  2. We will pay the loan into the current account you gave in your application. This will usually be no more than 5 working days after the start date or the specific date you asked for. If the loan is to repay any other business borrowings from us, the amount in your current account will be what is left over (if anything) after we have taken away the amount needed to repay those borrowings.
  3. If you repay more than the total amount payable, we will close the account and return the amount you overpaid to another account you hold with us or by sending you a cheque.

What is the cost of the loan?

  1. We charge a fixed amount of interest which we add to the loan when we open the loan account and an arrangement fee. The total amount payable by you is the sum of the arrangement fee, interest and the loan. Although it is added upfront, we work out interest (and the APR) as if the loan amount was reduced by each projected repayment, using the interest rate, the number of monthly repayments and the period of the loan. For these purposes, we assume we provide the loan one month (or, if you have an initial payment holiday, three months) before the first repayment date.

How must you repay the loan?

  1. You must pay the arrangement fee when the account is opened and make the monthly repayments. If a repayment date is a non-working day you must make the repayment (or we will collect it) on the next working day.
    If the first repayment date would be less than one month after we give you the loan we will move it to the next month. All repayments will be due on the same date each month.
  2. After you have made your first repayment, you can change the monthly repayment date if you ask us. We will not be able to change your next repayment date but we will change all subsequent repayment dates. You can only change the date twice in any 12 month period. Changing the repayment date will not affect the amount of interest on the loan.

What should you do if your details change?

  1. If you change your name, address, telephone number or email address you must tell us in writing or by calling us. We will use the most recent details you have given us to send information and contact you.

Can you repay the loan early?

  1. You can repay all, or part, of the loan early by giving us notice in writing or by telephone. If you give us notice, we will tell you the amount needed to repay the loan in full within the next 28 days (or on a later date you tell us).
  2. If you repay part of the loan early, your monthly repayment will stay the same but you may repay the loan more quickly. If you repay the loan in full, the formula in the regulations we use to work out the reduced amount of interest we can charge, works as if we charged interest at the rate that applies to the loan from the date we gave you the loan to the date which is 28 days after you give us notice, plus an additional month if your loan is repayable over a period of more than 12 months. For example, if the loan is for 36 months and you give us notice on 1 September that you want to repay the loan on 14 September, the amount required to repay the loan will include interest up to 29 October.

What are our rights if you miss a repayment or we have other concerns?

  1. There may be severe consequences if:
    1. you do not make repayments on time;
    2. we find that any information you provided as part of your loan application was materially incorrect or misleading or that you have used the loan for a non-business purpose;
    3. you or anyone else take action which is, or could directly result in, a formal step being taken for the bankruptcy, receivership, administration, liquidation, dissolution or similar proceedings against you or any of your assets;
    4. you enter into or propose any composition, voluntary arrangement or scheme of arrangement with your creditors;
    5. we reasonably suspect any fraud or other criminal activity in connection with this agreement and/or any other facility or account that you have with us;
    6. you fail to repay or meet in full any debt or liability when it is due to us or anyone else;
    7. you cease, transfer or assign the whole or a substantial part of your business or your interest or control in it or we become aware that you are about to do any of these things.

In any of these cases, we can:

  • demand immediate repayment of the loan;
  • disclose information about you and the conduct of your loan to licensed credit reference agencies (which may make it more difficult for you to borrow in future);
  • restrict access to credit on other accounts you have with us (such as an overdraft or credit card);
  • bring legal action to recover the loan (which could include asking a court to order that, if a property you own is sold for any reason, some of the sale proceeds are used to repay this loan); and
  • require you to pay our reasonable costs and expenses for taking action to obtain payment, including legal costs;

but we will give you advance notice and (unless the problem cannot be fixed) the opportunity to fix the problem before taking any of these steps.

  1. If we choose not to enforce our rights under this agreement at any time, we may enforce them at a later date instead.

Can we use any other funds to repay the loan?

  1. If we hold any money for you on another account (for example if you have money in a current or savings account), we can use it to reduce or repay any sums you fail to pay under this agreement but only after we have checked that you have enough left in your accounts to cover essential living costs. We will give you advance notice and the opportunity to fix the problem first.
  2. If you have provided security for any other borrowing from us, it will not apply to the loan.

Can we transfer our rights under this agreement?

  1. We may transfer our rights and our obligations under this agreement to a third party, including information about you and how you have managed the loan which the third party needs to know.

What law governs this agreement?

  1. This agreement, and everything that happens in relation to this agreement before it is made, are governed by the laws, and subject to the non-exclusive jurisdiction of the courts, of England and Wales. We will communicate with you at all times in English.
  2. From time to time we may require you to give us financial or other information that we need for the purpose of monitoring this loan and your ability to make repayments.

Information we need from you and when we can disclose information about you

If we make a reasonable request for information, you must give it to us as soon as possible. It’s up to you to make sure the information you give us is accurate and up to date and you must tell us if anything changes, within 30 days.

We may disclose information to other HSBC Group companies as set out in the Privacy Notice, as set out below.  We may also give information to others if we’re compelled to do so by law, we’ve a public duty to disclose it, we need to disclose it to protect our own interests (for example in any legal proceedings), where it is in our legitimate interest or that of a third party, or if we have your specific agreement.

Tax compliance

It’s up to you to meet your tax responsibilities in the UK and any other countries where this arises. This relates to the opening and use of accounts and services provided by members of the HSBC Group. Some countries’ tax laws may apply to you even if you don’t live there or aren’t a citizen of that country. Connected persons are responsible for their own tax obligations. As you’re responsible for your own tax obligations (and Connected Persons, for theirs), no HSBC Group member is responsible for this nor provides tax advice. It is your choice if you seek independent legal and tax advice.

Actions we make take in order to prevent Financial Crime

Members of the HSBC Group, are required, and may take any action to meet Compliance Obligations relating to or in connection with the detection, investigation and prevention of Financial Crime (“Financial Crime Risk Management Activity”). Such action may include, but is not limited to:

  1. screening, intercepting and investigating any instruction or communication sent to or by you or a Connected Person, or on your or their behalf;
  2. investigating the source of or intended recipient of funds;
  3. combining Customer Information with other related information in the possession of any member of the HSBC Group: and/or
  4. making further enquiries as to the status of a person or entity, whether they are subject to a sanctions regime, or confirming their identity and status.

Exceptionally, our Financial Crime Risk Management Activity may lead to us:

  1. delaying or refusing to either process a payment or your instructions;
  2. being unable to provide all or part of the Services to you and ending our entire relationship with you;
  3. taking necessary steps for any member of the HSBC Group to meet the Compliance Obligations; and/or
  4. blocking or closing your account(s) or products(s) (although not any of your mortgage account(s)).

To the extent permissible by law, no member of HSBC Group shall be liable to you or any third party in respect of any loss (however it arose) that was suffered or incurred by you or a third party, caused in whole or in part in connection with the undertaking of Financial Crime Risk Management Activity.

Right to withdraw

You can withdraw from the agreement (without giving any reason) by sending written notice or calling us within 14 days, starting the day after we confirm that we have signed the agreement. To tell us that you want to withdraw, please use the details under Important Information below.

You must repay the loan, without delay, within 30 days, starting the day after you tell us that you want to withdraw, with interest for each day until you repay. We won't charge any interest if you repay the loan in full within 14 days starting the day we provide the loan. You can repay by calling us or by visiting one of our branches.

If the loan is to repay any other borrowing from us, withdrawing from this agreement will not reinstate your existing agreements. These will end when we sign this agreement and apply this loan to repay everything you owe under those agreements.

Privacy Notice

Your privacy is important to HSBC

Our Privacy Notice explains how we collect, use, disclose, transfer, and store your information and sets out your rights to your information. You can find this at http://www.business.hsbc.uk/en-gb/gb/generic/legal-information or you can ask for a copy in branch.

You must ensure that every connected person whose information you (or anyone else on your behalf) provided, or will provide, to us or a member of the HSBC Group has been notified of, and has agreed to, the processing, disclosure and transfer of their information as set out in our Privacy Notice. You must at the same time advise individuals that they have rights of access to, and correction of, their personal data.

What’s a ’connected person‘?

A ‘connected person’ is a person or legal entity whose information (including personal data or tax information) you provide, or which is provided on your behalf, to any member of the HSBC Group or which is otherwise received by any member of the HSBC Group in connection with this agreement.

A connected person could be any guarantor, a director or officer of a company, partners or members of a partnership, any substantial owner, controlling person, or beneficial owner, trustee, settlor or protector of a trust, account holder of a designated account, recipient of a designated payment, your representative, agent or nominee, or any other persons or entities with whom you have a relationship that’s relevant to your relationship with the HSBC Group.

How to contact us

If you need to contact us e.g. to update your contact details, ask for information about early repayment, tell us that you want to withdraw from the agreement or make a complaint please:

  • write to

    Customer Relations
    Business & Corporate Banking
    HSBC Bank Plc
    PO Box 6125
    Coventry
    CV3 9GW
  • Or call 03457 60606 (All lines are open 8am to 10pm every day. Calls may be monitored or recorded for quality and training purposes)

How can you keep track of what you owe?

You may ask us at any time for a statement of account. This statement will be in the form of a table setting out:

  • details (including the amounts) of the repayments you still owe,
  • the dates on which each repayment is due, and
  • a breakdown of each repayment showing how much comprises capital, interest and, if applicable, other charges.

We will not charge for the statement.

How can you make a complaint?

If we do not give the standard of service you expect, or if you think we have made a mistake, please let us know so we can investigate, put matters right and take steps to prevent it happening again.

If you are not happy with the way that we deal with your complaint, you may be able to refer your complaint to the Financial Ombudsman Service by writing to Financial Ombudsman Service, Exchange Tower, London E14 9SR, calling 0800 023 4 567 or 0300 123 9 123 or sending an email to complaint.info@financial-ombudsman.org.uk.

How we are authorised

HSBC Bank plc is established and has its registered office at 8 Canada Square, London E14 5HQ. We are a financial services organisation and banking institution authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our reference number is 114216. You can check this on the Financial Services Register by visiting the Financial Conduct Authority website www.fca.org.uk or by contacting the Financial Conduct Authority on 0800 111 6768. The Financial Conduct Authority is the supervisory authority under the Consumer Credit Act 1974. Its address is 25 The North Colonnade, Canary Wharf, London, E14 5HS.

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