The interest rate (or profit share ratio for profit share loans) is always fixed when a borrower is applying for a loan from Trine. The interest rate of a loan is negotiated between Trine and the borrower before the loan becomes available for investors. Below we will explain this further and what kind of fees a borrower is charged when receiving debt financing from Trine.
Management fee
Trine charges a management fee on the outstanding amount for each loan. This is deducted before a loan offer is presented towards investors and works on the same basis, meaning that Trine gets repayments when, and only if, the investors get repaid. Depending on negotiations and the borrower’s credit score, it can vary but has historically been around 3-4%.
Arranger fee
This is the fee that the borrower pays once a loan has become fully funded. It is a one-time fee for each loan funded on Trine’s site. Depending on negotiations, it can vary between 2-4% of the total loan amount.
Late fee
If a repayment from a borrower is delayed for more than 7 days, a late fee will be charged, and this amount will be solely distributed among investors, meaning that Trine does not receive any late fees from borrowers at all.
Administrative fees
Trine will charge a penalty to the borrower if they add administrative costs to Trine due to changes outside of the original agreement. These fees are retained by Trine and stipulated in the loan facility agreement. Typically they are:
Early repayment fee: charged when a borrower repays the entire loan before its term ends
Restructuring fee: charged when a borrower requests for a loan restructuring
Debt recovery fee: charged when a borrower defaults and it's based on the collected amount
Late reporting fee: charged if a borrower submits its quarterly reports over 7 days late.
If you have any questions or concerns, we are here to help. Reach out to us at hello@trine.com.