What is included in my offer?
Your offer sets out the key terms of your Flexible Trade Account, including your approved credit limit, advance rate (also referred to as the prepayment percentage), fees and pricing, and any applicable conditions. It also includes the legal documentation required to activate the facility.
How is my credit limit decided?
Your credit limit is determined as part of the onboarding assessment. We look at information from your connected accounting software and bank account, along with other relevant business information, to understand your trading activity, cash flow, and overall financial position. This helps ensure the limit is appropriate for your business.
What is an advance rate / prepayment percentage and how does it work?
The advance rate (sometimes called the prepayment percentage) is the proportion of eligible invoices that support funding. The advance rate is used to ensure there is sufficient invoice value supporting the facility.
What fees or charges apply?
Your offer will clearly set out all fees and charges that apply to your Flexible Trade Account.
These typically include:
A service fee charged on a monthly basis for the account and payment services provided under Bourn’s Flexible Trade Account Service Terms.
A discount rate charged on the funds you use under the Working Capital Facility (Debt Purchase Agreement). The discount rate is linked to the Bank of England base rate, with an agreed margin applied.
All pricing is transparent and tailored to your facility, and full details are included in your offer.
When do fees start being charged?
Charges start to apply once your facility is activated and you begin using it.
Charges are applied monthly in arrears, on the first of the month, for usage during the previous month. All charges are shown clearly in your Flexible Trade Account and are debited from the account, rather than collected via a separate payment.
Do I pay if I don’t draw down any funds?
You only pay Discount Rate (the rate is linked to the Bank of England base rate, with an agreed margin applied) on the amount you have actually drawn down and are using.
Please note that a service fee charged on a monthly basis for the account and payment services provided under Bourn’s Flexible Trade Account Service Terms.
What security is required?
The Flexible Trade Account is supported by your business’s eligible invoices and typically includes standard security arrangements such as a debenture. Other indemnities or guarantees may apply where appropriate.
All required security is clearly set out in your offer documentation so you can review this in full before accepting.
How do I accept and sign the offer?
You’ll receive an email with your account and facility documents to be signed electronically via DocuSign, so there’s no need for printing or posting paperwork.
What happens after I accept the offer?
Once you’ve accepted and signed the account and facility documents, we complete final activation checks.
When these are complete, your Flexible Trade Account is activated and you’ll be able to see and access your available funding directly on the Flexible Trade Account portal.