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Worked Example

A client has a requirement for a Schneider loan. The client has not yet reached first appointment and therefore requires funding throughout the process.

The client’s solicitor estimates the costs to be:

  • £20,000 to get to first appointment
  • Another £50,000 to then get through to financial dispute resolution and
  • A further £80,000 should the case go to final hearing

The total requirement therefore should the case conclude at final hearing would be £150,000.

The client is unable to provide any security for the loan, and so is eligible for the standard interest rate of 2% per month (fixed).

Having satisfied Schneider’s lending criteria a loan agreement is provided for the full £150,000, divided into three tranches. The arrangement fee is 1% of the loan, or £1,500, which is not payable until settlement. The arrangement fee does not accrue interest throughout the loan term.

Having completed the loan agreement and cooling off period, the first tranche of £20,000 is activated to pay the legal expenses. Four months later first appointment is reached and the second tranche is requested and, subject to approval, activated and a further five months later the final tranche is requested and, subject to approval, activated in order to take the client all the way through to final hearing, six months later. The Court then finalises a settlement and imposes a settlement implementation date of 3 months. The loan is repaid at the settlement implementation date. The entire process has therefore taken 18 months.

The costs of the loan are:

Costs table
Representative Example
Total amount of credit: £150,000                    Annual rate of interest: 24% (fixed)
Arrangement fee: £1,500                               Duration of the agreement: 18 months
Representative APR: 24.8%                          Total amount payable: £187,100
Paid in a single payment after settlement

Schneider Financial Solutions Limited is incorporated in England and Wales with company number 8668384.

The registered office address is The Penthouse, Salisbury House, 29 Finsbury Circus, London EC2M 7AQ.

Schneider Financial Solutions Limited is authorised and regulated by the Financial Conduct Authority (FRN 724278).