How much does it cost for Lenders ?
October is entirely free for Lenders. There is no entry cost, no exit cost, not management fees.
How much does it cost for Borrowers ?
A financing request is completely free of charge, including the analysis phase by the October credit team. Only after the financing terms are agreed by both parties and the loan is funded, will the borrower be charged the fees described underneath. All the details of the financing and its fees will be listed in the final offer in a totally transparent way.
The fees are composed of:
a project set-up fee (3%): Upon crediting of the funds, October charges a project set-up fee equal to 3% of the amount borrowed. This commission is deducted directly from the amount paid into the borrower’s bank account. As an example, if you borrow 100,000€, the project set-up fee will be 3% of €100,000 =€3,000. Your bank account will be credited with €97,000.
a monthly fee (0.04%): October debits a monthly fee representing 0.04% of the amount borrowed. This fee is included in the the monthly repayment composed of the capital and interests. This monthly fee aligns October’s financial interest with those of the lenders and borrowers throughout the term of the loan. As an example, if you borrow €100,000, the monthly fee will be 0.04% of €100,000 = €40/month.
These costs represent financial expenses that will be recognized as such in your company’s income statement, thus reducing taxable income.