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(Moratorium) Payment Holiday/Extension Request & New Deal Information: FAQs

16/07/2020

We understand that many of our customers have been impacted due to this unprecedented and testing Covid event and where appropriate we have supported Moratorium requests (payment holidays) and continue to consider requests which may include an initial payment holiday request, an extension of an existing payment holiday or a part payment of rentals.

We would like to reassure you that we are here to support you and have provided guidance below of the actions you should take depending on the nature of the query you may have. We also include details of additional information required for New Deal proposals:

FAQ’s

Q1. Are you still offering initial payment holidays?

Yes, we will consider payment holidays of up to 3 months on a case by case basis subject to receipt of information listed in Q2. below

Q2. I have already had a payment holiday can I extend this holiday past the initial 3 month period, or request part payment of rentals, is this offered to all customers?

We will consider offering additional 3-month payment holiday extensions or part payment of rental (e.g. 50%, 25% of rental due) options to customers.

Whilst we will look at all such requests sympathetically, each decision will be considered on a case by case basis according to the information submitted and sector analysis. Requests may not be accepted, or we may offer part payment alternatives for the 3-month period.

To assist us, please would you supply  the latest versions (*ref Q2a) of the following information (If you have used a finance broker and you have already provided this information to your finance broker as part of an extension request that they have submitted on your behalf, you do not need to send it again):

  1. Details of any assistance you have requested / applied for / received under Government Initiatives, and moratoria granted by other creditors e.g. landlord, bank, finance companies etc. Government guidance to employers and business about Covid-19 can be found at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
  2. Numbers and % of staff currently furloughed and other cost savings initiatives that you have taken
  3. Copies of bank statements going back 3 months and confirmation of current available overdraft and loan facilities (with current drawdown level)
  4. List of monies owed to you, including outstanding invoices and how long they have been outstanding for.
  5. List of creditors due to be paid over the course of the next 6 months, including payments due under lease, hire purchase and loan agreements.
  6. Confirmation of whether you are currently using, or intend to use within the next 3 months, the assets subject to the agreement for which you are requesting a further deferral as well as their current locations. SGEF may at its discretion wish to carry out an asset inspection.
     

This information should be sent by email to Covid@sgef.co.uk. Please include your company name in the subject matter line and your agreement reference(s) in the response.

Please ensure you provide this information at least 3 days prior to the payment due date so the direct debit can be suspended in time, or no later than 7 days after the request for a payment holiday.

* Q2a. I have supplied this information with my initial request do I need to send it again?

We understand that you may have sent similar information with your original request, but it is important we are aware of any changes to your situation over the last 3 months when assessing your new request.

Q3. What do I have to do to organise a payment holiday extension on my agreement?

The best way to contact our team so we can keep track of your request is to email to Covid@sgef.co.uk. Please include your company name in the subject matter line and your agreement reference(s) in the response.

Please ensure you include the following information or provide this information at least 3 days prior to the payment due date in order to prevent any payment issues.

  1. Details of any assistance you have requested / applied for / received under Government Initiatives, and moratoria granted by other creditors e.g. landlord, bank, finance companies etc. Government guidance to employers and business about Covid-19 can be found at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
  2. Numbers and % of staff currently furloughed and other cost savings initiatives that you have taken.
  3. Copies of bank statements going back 3 months and confirmation of current available overdraft and loan facilities (with current drawdown level).
  4. List of monies owed to you, including outstanding invoices and how long they have been outstanding for.
  5. List of creditors due to be paid over the course of the next 6 months, including payments due under lease, hire purchase and loan agreements.
  6. Confirmation of whether you are currently using, or intend to use within the next 3 months, the assets subject to the agreement for which you are requesting a further deferral as well as their current locations. SGEF may at its discretion wish to carry out an asset inspection. 

We would kindly ask that you provide this additional information within 7 days of requesting the additional payment holiday, otherwise, we will assume you no longer require the payment holiday and your Agreement will proceed on the previous terms.

Q4. If I have already been approved for an initial 3 month payment holiday, and wish to extend the payment holiday, what are the options?

We will consider a further payment holiday extension of up to 3 months subject to review of the information listed in Q3. If you wish to pay a proportion of the rentals or request a shorter extension period, this will also be considered and should be included in your email request.

Q5. How long will it take to get an answer on the payment holiday extension?

We will endeavour to respond to you within 14 days of the receipt of the supplementary information, but please note that the impact of Covid-19 upon our business and staffing levels may mean on occasion correspondence will take longer than usual to arrive. Rest assured, the first action we take when we receive the full supplementary information is to suspend the Direct Debit in the interim period while we consider the request.  We aim to suspend all direct debits within 72 hours of receipt, but in many cases we will do this sooner. Unless we receive the full supplementary information, the direct debit will remain open.

We understand that this is a difficult and stressful time for many businesses so would like to reassure you that our customer service and sales account management teams are available to assist you should you wish to discuss with us further.

Q6. I am concerned my next payment will be taken before you have processed the new request what should I do?

Rest assured, the first action we take when we receive the full supplementary information is to suspend the Direct Debit in the interim period while we consider the request.  We aim to suspend all direct debits within 72 hours of receipt, but in many cases we will do this sooner.

As such,  we would ask that you email your supplementary information at least 3 days prior to the payment due date to Covid@sgef.co.uk.

If your payment due date is within 3 days, please mark your request as RED URGENT in the email header and copy in your account manager and we will do our best to accommodate your request.

We would also kindly ask that any additional information is provided within 7 days of requesting the payment holiday extension, otherwise, we will assume you no longer require the payment holiday and your Agreement will proceed as normal.

Q6a. Should I cancel the Direct Debit myself

We would ask that you do not cancel your direct debit.  If you cancel your direct debit rather than allowing us to suspend it this could create issues when any payment holiday period comes to an end.  It will also create significant extra processing for SGEF at a time of unprecedented demand and business disruption.

Please note: It is a condition of your agreement to have an active direct debit in place with us. 

Q7. How will the payment holiday extension (2nd moratorium) period work, will you just extend my agreement by the payment holiday period?

Where the agreement has greater than 6 months to run, we will spread any payments (or part payments) missed over the remaining life of the agreement. Where the agreement has less than 6 months to run, we will look to extend the term by 3 months

Interest treatment for second moratorium holiday (non FCA regulated agreement)

The interest cost of deferring the payments during the second moratorium is charged at the rate in the Agreement and will be added to the first payment when the second moratorium period expires.

(Please note this differs from the interest treatment for the first payment holiday where the interest was charged at SGEF cost of funds with no margin (max 2% p.a.) and added to either the final payment OR split equally over the final 3 payments.)

Q8. If the payment holiday request is declined or a part rental agreed, when is my next payment due?

If a payment has been missed in the intervening period, we will collect this payment immediately by direct debit. Otherwise, we will automatically resume collecting direct debits at the same frequency as before.  The next payment date will be stated in the letter you receive communicating our decision.

Q9. Will the payment holiday extension affect my credit record?

If you have requested a payment holiday in advance of a payment being due, the fact that rentals have been deferred as a result of Covid-19 will not affect your credit record.  If you have arrears that have arisen outside of the payment holiday period, or if you have cancelled your direct debit payment without first requesting a payment holiday this may affect your credit record. If you believe that your credit record has been affected as a result of the Covid-19 rental deferral, please contact SGEF at  Covid@sgef.co.uk

Q10. What information do you require for New Deals?

In respect of new deals SGEF UK remains open for business and is continuing to support our partners by reviewing new proposals for equipment finance. Given recent events we now require some additional information to support any new proposals. In order to give you the best service we would appreciate if your new proposals could also include answers to as many of the questions detailed below as possible:

  • When was the asset placed on order?  
  • What was the original investment rational?
  • How will the asset be deployed within the business?
  • Why is the asset still required in the current climate?
  • How will the asset help to generate cash flow?
  • Details of won/lost/delayed contracts/jobs as a result of COVID-19.
  • Details of any assistance requested / applied for / received under Government schemes.
  • Schedule of all HP / lease / loan repayments due in the next 12 months – would typically ask for anyway on larger deals.
  • Cash position including headroom on any banking facilities – would typically ask for anyway on larger deals.

 

General Information

  • General enquiry? If you have a general enquiry about your agreement please in the first instance contact our Customer Services Team on customer.services@sgef.co.uk and they’ll do their very best to help and reply to all enquiries.
  • Specific agreement request? If you have a specific request on an agreement, please email your request attaching any relevant information to customer.services@sgef.co.uk
  • If you are experiencing payment difficulties, the FCA (Financial Conduct Authority)  provides important information including free debt advice which can be found by clicking here.