Appendix F Quality-Cost Based Tender Evaluation Criteria Appointment of Loan Fund Manager

Transcription

1 Appendix F Quality-Cost Based Tender Evaluation Criteria Appointment of Loan Fund Manager Criteria Weighting Quality 1 Company Status 1.1 Location of Headquarters Legal Status for Lending Activities Financial Standing Track record in managing and delivering loans to businesses, particularly SMEs, in the last 5 years Project Management structure Project Team structure incl. staff resourcing levels anticipated for this project Team expertise and experience in: 5.1 Managing Loans to SMEs Working with public sector clients Clarity of Proposal Understanding of objectives Appropriateness of approach / methodology Expected quality of output 1.0 Cost 10 Submitted Loan Administration and Management Cost (Lowest cost will score max points) Projected Fixed Interest Rate to be charged (Lowest rate will score max points) 2.0

2 Final score will be based on a 70/30 Quality/Cost ratio. Scoring, on a 1-10 scale, using the following criteria: Unacceptable 1 Marginal, unacceptable pending further review 2 Acceptable with significant reservations 3 Reasonable, acceptable with noteworthy reservations 5 Good, acceptable with few/minor reservations 7 Very good, acceptable with no reservations 9 Excellent with no reservations 10

3 Appendix G SAMPLE PROCEDURE FOR PATHFINDER LOAN FUND 1. PURPOSE The purpose of this procedure is to ensure that the appropriate members of the organisation understand and can carry out the requirements of this service, in order to comply with the Consumer Credit Act and Data Protection Act. 2. RESPONSIBILITY Head of Major Contracts and Head of Finance and Contracts have accountability over the project. The Pathfinder Loan Team has responsibility to monitor the project. 3. QUALITY SYSTEM RECORDS/WORKING DOCUMENTS Loan Application Form (QF 116), Loan Application Unsuccessful (QF 118), Loan Offer Letter (QF 119a), Affordability Declaration for Start Ups (QF 119b), Affordability Declaration for Existing Businesses (QF 119c), Credit Agreement (QF 120a), Arrangement Fee Confirmation (QF 120b), Defaults and Early Settlement Info Sheet (QF 120c), Loan Offer Letter for Ltd Companies (QF 121), Personal Guarantee (QF 122), Receipt of Documentation Letter (QF 123), Welcome Letter (QF 124), Loan Repayment Schedule (QF 125), 1 st Non-Payment Advice Letter (QF 126a), 2 nd Non Payment Advice Letter (QF126B), Default Notice Letter (QF 127), Formal Demand Letter (QF 128), Loan Rescheduled Letter (QF 129), Loan Re- Profiled Letter (QF 130), New Loan Letter (QF 131), Thank You Without Offer Letter (QF 132), Thank You With Offer Letter (QF 133), Client File Check Sheet (QF 160), Letter of Claim Ltd (QF 211), Letter of Claim ST/PT (QF 212), Site Visit (QF 213), Annual Statement (QF 214), Settlement Fee (QF 216). 4. PROCEDURE Follow procedure as attached and ensure all relevant paperwork and databases are kept up to date at all times. 5. HANDLING AND PRESERVATION OF FILES/DOCUMENTATION Any records/files/equipment taken out of the office to be signed out, on returning items to the office to be signed in. All records to be kept on live file at least 3 years from the date of the final loan repayment, then archived for a period of 3 years, unless stated otherwise in project contracts. Before deciding to destroy by any means, confirmation from the C.E is sought. Details will be entered on the Archive and/or Disposal forms, QF08 & QF09. RECORDS MAY BE KEPT IN THE LIVE FILES LONGER IF LEGISLATION DICTATES. Particular care should be taken with regard to legal/health & safety, accounts documentation and contracts, as records should be kept for a certain number of years.

4 Pathfinder Loan Procedure Contents: Stage Summary of contents: Who it applies to: 1 Initial Enquiry PL*, Admin and BA* 2 Business Plan Development BA and PL 3 Loan Application PL 4 Panel of Appraisers PL 5&6 Loan Rejection/Offer PL 7 Loan Disbursement Monitoring Process/Managing the Loan 8 Portfolio PL and Finance Department PL and BA * BA Business Advisor * PL Pathfinder Loan Team

5 Pathfinder Loan Procedure Stage 1 If an enquiry comes in: The administration team will take the clients details and log them onto the Database System. If the client is a new business that is currently not seeking business advice or training through the Business Advice Project, the administrator will arrange a meeting with an appropriate advisor. If the client has a Business Plan they will be asked to forward this on for review before the meeting takes place. The above is the same for an enquiry that comes into the Pathfinder Loan Team. If an existing business then Pathfinder Loan Team will deal with the client directly (unless already dealing with an Advisor). At a Pathfinder Loan Meeting Eligibility of the client will be assessed o Been refused mainstream credit o Based within the Pathfinder area If the client has submitted a Business Plan before the meeting the Advisor will give feedback on this and advice on what else needs to be done in order to get the client to the application stage. If the client has no Business Plan they will be advised on what needs to be done in order for an application to be taken. At this meeting the Pathfinder Loan Team can assess the clients ability to produce a Business Plan. If the client is a start-up business it can be recommended that they attend a Business Planning course and advice sessions with the appropriate agency in order to produce a plan. If an existing business it may be appropriate for the client to work with either a designated Business Advisor or the Pathfinder Loan Team if deemed necessary. Informed security will be taken where possible (mainly in the form of assets). If already a Pathfinder Business Advice project client: When the client shows an interest in Pathfinder Loan there are two options: o If their Business Advisor (BA) feels it is necessary they will have the client booked into a meeting with the Pathfinder Loan Team. This enables the client to receive feedback on their plan and what else needs to be done in order to be able to apply. o Or carry on assisting the client with their Business Plan Development and pass on to the Pathfinder Loan team when complete. Other: It may not be appropriate for an Advisor or the Pathfinder Loan team to deal with a client face to face (mainly due to geographical reasons). Meetings and feedback can take place via phone or .

6 Pathfinder Loan Procedure Stage 2 Pathfinder Loan offers three different loan products; each loan applicant must produce a Business Plan and supporting documents in order to be eligible to apply for these. The following is applicable to all three products: A complete Business Plan must include: o Business Summary o Full and extensive research and analysis o Loan attributes, including loan amount, loan term, what it is required for and when the loan will be required (straight away or sometime in the future if a start-up) o An up-to-date cash flow forecast (incorporating the proposed Pathfinder Loan repayments) o Profit and loss forecast o CV/Personal Profile o Evidence that they cannot access mainstream finance o Asset register (if applicable). If the client is a new business (or trading less than a year) they must also provide: 6 months worth of personal bank statements no more than 4 unpaid items to be present If the client is an existing business, they must provide: 2 years worth of trading accounts Interim figures if deemed necessary It must be noted that Pathfinder Loan can ask the client to provide any supporting documents that they deem essential, such as management accounts, business bank statements, copy of leases etc.

7 Pathfinder Loan Procedure Stage 3 Once the Business Plan has been reviewed and agreed it is fit for purpose by the Pathfinder Loan team a meeting will be booked in order for an Application Form (QF 116) to be completed. For both the Start Up Business Loan and Business Loan this will be a straight forward meeting with the client where the Application Form will be completed by the client. At this meeting the client will need to produce Proof of Identification and Address, copies of which will be taken. In some circumstances it may be more appropriate for a postal application to be done. The client will complete an Application Form and post this along with Proof of Identification and Address to the Pathfinder Loan Team. Once received copies of the Identification an Address will be taken and then the originals sent back to the client. For a client who wants to apply for a Business Development Loan the application process differs to above. Once a Business Plan is complete a site visit will be arranged to visit the business premises. At least one member of the Advance team must be present at this meeting. At the site visit: o A report will be produce on the business QF 213 Site Visit o Questioning of the key business owners to be undertaken o Application Form (QF 116) to be taken o Copies of Proof of Identification and Address to be taken However it may be impractical for a meeting to take place (geographical reasons), therefore a postal application can be done. The client will need to post the signed Application Form (QF 116) along with original copies of Proof of Identification and Address, once received copies will be taken and originals sent back to client. If a postal application is taken the QF 213 Site Visit. Once the above is done Pathfinder Loan will open a client file. It must have a Check Sheet for Client File (QF 160) at the front and be completed fully and in correct order (all of the above documentation will go into it). Once Pathfinder Loan has received an application and all the documentation they will get back to the client within 21 working days with a decision. Client/Application details to be entered onto the Application Stage on the Database System. Pathfinder Loan team will carry out a Credit Check on the customer using Equifax (to go into file). This is to ensure that all information on the client and contained within the loan application is correct.

8 Pathfinder Loan Procedure Stage 4 Decision Panel for Quick Start Business Loan and Business Loan: Decision on whether a loan will be granted or not will be made by the NWES Advance team and any other appropriate persons if applicable. There is an option via the Database System that allows for members to be chosen manually. The Pathfinder Loan Panel will register their decision via the Database System. Majority decision rules. Decision Panel for Business Development Loans: The Panel of Appraisers for this loan product will be: o Made up of both Pathfinder Loan staff and a least one other (this could be a member of Management or an external professional). o Made up of at least 3 people o Generated through the Database System and electronically sent the appraisal o The Pathfinder Loan Panel will register their decision via the Database System. o Majority decision rules. The panel will be ed the financials for the applicant along with any other appropriate supporting documents. The panel can insist on meeting the applicant if the feel it is necessary. General Decision Process: If any of them have any questions or queries they will refer back to Pathfinder Loan team. They are initially given 5 working days from receiving the application in which to make a decision. This decision must come in the form of a definite YES or a definite NO. If no majority decision is reached within this time a prompt will be sent to those Appraisers who have not yet responded. If their decision is NO they must give reasons, then it is down to the discretion of Pathfinder Loan Team to whether or not this can be resolved. If they believe so then they will contact the client to try to rectify the problem. Once this has been done the application will be sent back to the Appraiser/Appraisers that said NO to see if their decision will be different. Once they have reached their decision they will detail this at the bottom of the Business Appraisal on the Database System. The decision on whether or not to award a loan will be based purely on a majority vote. The decision page from the Database System must be printed out and placed in the client file. The panel can decide to grant a loan with conditions attached; these will be detailed in the Loan Offer Letter to be sent to the client.

9

10 Pathfinder Loan Procedure Stage 5 and 6 On the Database System all of this section is done under the Documentation stage. Loan Rejection: If the panel has declined the loan application then Pathfinder Loan will send the applicant a Loan Application Unsuccessful Letter (QF 118), with the reasons why explained (a copy will also go into file). Loan Offer: If the application has been successful then the applicant is notified through a Loan Offer Letter (QF 119a or QF 121 if they are a Limit Company) (a copy to go into file). With the offer letter the client will also receive: A letter for them to sign confirming they can afford the loan (either QF 119b Affordability Declaration for Start Ups or QF 119c Affordability Declaration for Existing Businesses). Two copies of their Credit Agreement (QF 120) (one of which is to be signed and sent back to NWES Advance and the other they keep). An Arrangement Fee Confirmation (QF 120b) for them to sign (this is done so they do not receive interest on the arrangement fee and gives Pathfinder Loan team permission to take the amount). Defaults and Early Settlement Info Sheet (QF 120c). A Direct Debit Instruction to sign and send back. If they are a limited company they must also sign and return a Personal Guarantee (QF 122) (to go into file) (each director of the company will need to complete one). If they choose not to do this the loan will not be granted. Not all of the Directors have to sign a Personal Guarantee. The Directors that are not named on the loan must confirm in writing that they agree to the loan and the relevant Directors acting as guarantor.

11 Pathfinder Loan Procdure Stage 7 All documents need to be audited to make sure everything is correct and legal. The signed credit agreement along with the personal guarantee, if applicable, signed arrangement fee and signed declaration of affordability will go into the client s file. Once all documentation has been returned and checked the Database System can be moved onto the Loan Stage and a Receipt of Documents Letter (QF 123) will be sent to the client. A copy of signed documentation must be scanned and saved onto the system in the following location in the network hard drive. A copy with also be kept on a memory stick at the offices. The signed Direct Debit Instruction will be placed in the file. The Direct Debit Instruction will be lodged with the client s bank using the BACS System. Once the ten working days cooling off period has elapsed Pathfinder Loan team will arrange for the loan to be disbursed into the client s bank account (or wait until the date that the loan is required from is reached). This will be done through the Finance Department, who will disburse the loan through a bank transfer. A Welcome Letter (QF 124) stating this, along with details of the Loan Repayment Schedule (QF 125), will be sent to the client. The client does have the right to waive the ten day cooling off period, if they wish to do so they must inform Pathfinder Loan in writing (the letter must be kept on file). If they chose to waive the right the loan monies will be transferred as soon as all the documents have been audited. On the system the loan will then appear active. The payment scheme takes effect once the loan has been disbursed.

12 Pathfinder Loan Procedure Stage 8 Monitoring Process/Managing the Loan Portfolio. Loan Repayments: During this stage the department manages the portfolio; this includes doing a Direct Debit/BACS Call via the Database System and Direct IP. This is where a report will be generated to send via remote access to client s bank, in order to instruct them to pay the Direct Debit to Pathfinder Loan. This will be done twice a month, three days before the actual repayment day (1 st and 15 th, this depends on Bank Holidays and weekends) as it take this long to process the batch. Payments can be made on other dates if specifically requested with genuine reasoning. The department must then monitor the payments that are received and missed. The batch is then reconciled on Database System, detailing all repayments received and missed, these are then transferred over to the clients account. The client can make extra manual payments of they can afford to and these will be logged onto Database System. Missed Repayments: If a payment is missed, without the client informing Pathfinder Loan, the client will be sent a Non Payment Advice Letter (QF 126a). Pathfinder Loan will inform the client that they will endeavour to represent the returned Direct Debit 14 days after the original repayment date, so the client must make sure the funds are available. If the client s repayment date is the 1 st Pathfinder Loan will represent the Direct Debit in the next batch on the 15 th. The client will also be informed that due to the returned Direct Debit they have incurred a 25 fee and this fee will be taken on their next scheduled repayment date along with their normal repayment amount. If the represented Direct Debit fails they will be sent a second Non Payment Advice Letter (QF 126b), this will include a paying in slip for the client to make a manual payment at a bank. They will have fourteen day from the date of the letter to make a manual payment before further action is taken. Pathfinder Loan will also endeavour to inform the clients BA of this so a meeting can be arrange to assess the situation. At this meeting the BA should try to establish why the client is experiencing problems and how they can be assisted to overcome these. Regardless of whether or not they make the missed payment the next due payment will still be taken as normal. If however they still fail to make up the missed repayment or contact Pathfinder Loan team, a Default Notice Letter (QF 127) will be sent to the client. The timescale for this will vary from client to client dependant on the amount of contact the client has had with us regarding their situation. This will state that if they still fail to make arrangements to pay outstanding amounts court action will be taken out against them.

13 If they still fail to contact Pathfinder Loan team a Formal Demand Letter (QF 128) will be sent out to them, stating the above has happened. Again the timescale for this will be dependant on the client. If they do not settle outstanding amounts it will then be out of Pathfinder Loan s hands and in those of the court. Pathfinder Loan team will endeavour to keep the client s BA informed of all missed payments/default dates. The client can make extra manual payments if they can afford to and these will be logged onto the Database System. Rescheduling and Re-profiling the Loan: The client does have the option to reschedule their loan once, if they are having difficulties in making their payments. If this is agreed a Loan Rescheduled Letter (QF 129) will be sent to the client for reference. If a client is in recovery, or we are attempting to agree a payment arrangement, their account can be put on hold. This will prevent any further attempts to take payment via the BACS system. A client who is making all payments on time can, if they so wish to help their business, reschedule their loan (in this case called re-profiling). We will do this if they can provide evidence that it would assist their business. If this is agreed a Loan Re-Profiled Letter (QF 130) will be sent to the client for reference. They also have the option of increasing their loan to assist them; this will be seen as a new loan as it will pay off the old one. If this is agreed, the client will be sent a New Loan Letter (QF 131). Pursuing Outstanding Debts: If there has been no positive contact from the clients the next step is to proceed with court action. Letter of Claim: A Letter of Claim (QF 211 or QF 212) will be issued. This will detail a breakdown of capital, interest, arrangement fees and accumulative fee outstanding on the loan. The claim form will give the client 7 days to make either contact with the Pathfinder Loan team or a payment towards the arrears on their loan. It will state that if no response is received Pathfinder Loan team will enforce their right to pursue all Personal Guarantors in recovering the outstanding amount owed. Court Action: Claim Form: If no positive response is received from the client. Court proceedings to recover the outstanding amount will progress. The Pathfinder Loan team will need to complete a claim form. This is available on the HM Court website ( Form N1. This must be sent to the County Court in the client s area along with the

14 Particulars of Claim, copies of all paperwork regarding the loan and the payment for the court fee. The Particulars of Claim are a detailed history of the contact the client has had with the Pathfinder Loan team. This must then be signed by the Head of Large Contracts or Head of Finance. This document will be used to support Pathfinder Loan s claim against the client in court. One copy of each document must be sent to the court with the Particulars of Claim and Claim Form and include and one for each defendant. One copy must be kept in the client file. The client will have the opportunity to admit or contest the amount outstanding. If the client admits the claim they will be asked to make an offer of payment. Pathfinder Loan team can then decide to accept or refuse the proposal. If the client does not respond, a Notice of Issue, form N205A will need to be completed to enforce the Judgment. Non Payment Following an Offer of Payment: When Pathfinder Loan accept an offer of payment we will receive a Judgment for Claimant (acceptance) the client must then pay us directly. If no payment is received, the Judgment can then be entered. This is done by filling in the Notice of Issue form which will enforce the Judgment. After a Judgment is Entered: After a Judgment is entered the client is still required to make payments towards the outstanding debt. If no payment is received Pathfinder Loan team can take either of the following action to recover an outstanding amount: Order to Attend Court for Questioning Warrant of Execution Third Party Debt Order Attachment of Earnings High Court (for amounts exceeding 5000) Loan Completion: Once a loan repayment schedule has been completed the client will be sent a Thank You Letter. There are two types of this letter: The first is for those who have had difficulty in repaying their loan; it is just a straightforward thank you (QF 132). The second is to those who have been successful, or who have had a reasonable amount of success, in sticking to their repayments. This thank you letter will include an offer of further funds (QF 133).

15 Appendix H List of CDFIs in the UK Acorn Fund ART (Aston Reinvestment Trust) BBV Bees Knees Big Issue Invest Black Country Reinvestment Society (BCRS) Bridges Ventures Bristol Enterprise Development Fund (BEDF) Business Enterprise Fund Business Finance Solutions Capitalise Business Support Charity Bank Co-operative and Community Finance Coventry and Warwickshire Reinvestment Trust Croydon Enterprise Cumbria Asset Reinvestment Trust Donbac DSL Business Finance East Lancs Moneyline (North West) East London Small Business Centre ELM (Staffordshire) ELM (Wales) Enterprise Northern Ireland Loan Fund First Enterprise Business Agency Five Lamps Society Foundation East Fredericks Foundation Fredericks Gloucestershire Fredericks Wessex GLE onelondon Goole Development Trust Hastings Trust HBV Enterprise Impetus Isle of Wight Lottery Key Fund Yorkshire Lancashire Community Finance Leicester Moneyline London Rebuilding Society MCF Merseyside Special Investment Fund Moneyline Greater Manchester Moneyline Yorkshire North London Community Finance NWES Project North East (PNE) Robert Owen Community Banking Fund Rootstock Scotcash

16 Sirius Social Investment Scotland South Coast Moneyline South West Investment Group (SWIG) South Yorkshire Investment Fund (SYIF) Spirit of Enterprise Street North East Street UK The PRIME Initiative Triodos TSELF (East Midlands) TSELF (North East) TSELF (North West) TSELF (South East) TSELF (West Midlands) Ulster Community Investment Trust WEETU Source: Community Development Finance Association website (