All GRID Products operate at a fixed discount cost and are priced on risk so may vary slightly depending on the output of the underwriting assessment. For more details please check our FAQ “What are the GRID product types and information requirements?”.
 
There are no hidden fees on a GRID Flexible Finance business facility. The cost of your funding advance is made up of two items. 

The first item is the GRID Arrangement Fee, this is fixed at €5 per €100, for instance, a €10,000 facility would translate to a GRID Arrangement Fee of €500 (excl. VAT at 23% which you can reclaim if VAT registered (€615 incl VAT)). This is only charged when you activate the facility and we will incorporate this into your facility so you receive the full €10,000 you have requested  

The second item is the Discounting cost, In taking a GRID Finance Flexible Facility you are selling GRID your future sales until the advance is fully redeemed. The Discounting cost is determined by the estimated term and amount of the funding.

With the above example with an estimated term of a 12 month advance for €10,000.00 + €615.00 Arrangement fee Incl VAT would cost €1,401.18. The facility cost is simply added at the outset of your activation and redeemed over the estimated term of your facility. The facility operates on a “Discounting basis” as you are selling your “Receivables / Future Sales” rather than a traditional “Loan” from a Bank. For display purposes only this discounting rate works out as 11.66% . This is based off of the discounting cost/ future sales required to redeem the Advance i.e. €1,401.18/(€10,615+€1,401.18). Your discounting Cost and % will be clearly contained in your facility letter.

With the above example but over an estimated term of a 6 month advance for €10,000.00 + €615.00 Arrangement fee Incl VAT would cost €700.59. The discounting rate is 6.19% and is worked out by €700.59/ (10,615+ €700.59). Your discounting Cost and % will be clearly contained in your facility