⚠️ A maximum of one request can be made every three months and only if you have submitted at least 5 new cases since you last approved request (these must be 5 different clients). Lastly, the maximum you can owe is £1000 at any giving time. ⚠️
TERMS OF THE AGREEMENT
1. Loan Amount
1.1. The Company agrees to lend the Advisor the sum of £[Loan Amount] (the "Principal").
2. Eligibility and Conditions
2.1. The Advisor warrants that this loan will not cause their total outstanding loan balance with the Company to exceed £1,000.
2.2. A minimum of three (3) months must have passed since the date of the Advisor's last loan agreement with the Company.
2.3. The Advisor must have submitted a minimum of five (5) new insurance policies since the date of their last loan agreement.
2.4. The granting of any loan is subject to the final discretion of the Company.
3. Repayment
3.1. Standard Repayment: While the Advisor is actively submitting business, the loan shall be repaid via a deduction of 20% from the first-year commission payment of each new insurance policy submitted ("Standard Deduction").
3.2. Mandatory Repayment on Inactivity: If the Advisor fails to submit any new business for a period of three (3) consecutive months, the Standard Deduction method will be paused. The Advisor must then commence monthly repayments of 20% of the initial loan amount via bank transfer, due on the 1st of each month. The Company will provide a formal notification when this mandatory repayment schedule is activated. This schedule will continue until the loan is settled in full or the Advisor resumes submitting business regularly, at which point the Standard Repayment method in Clause 2.1 will recommence.
4. Interest
4.1. This loan shall be interest-free, provided the Advisor adheres to the repayment terms.
4.2. A "Missed Payment" is defined as a failure by the Advisor to make a mandatory monthly repayment as required under Clause 3.2.
4.3. Should the Advisor accrue three (3) Missed Payments, interest shall be applied. The interest will be calculated at the prevailing Bank of England Base Rate plus 4%, and it will be applied retroactively to the outstanding balance from the date of the first Missed Payment. Interest will continue to accrue until the loan is settled in full.
5. Acceleration Clause
5.1. Notwithstanding any other clause, the full outstanding balance of the loan, including any accrued interest, will become immediately due and payable upon the termination of the Advisor's contract with the Company for any reason.
6. Right to Offset
6.1. The Advisor irrevocably authorises the Company to deduct and offset any outstanding loan balance from any and all monies owed to the Advisor by the Company. This includes, but is not limited to, final commission payments, bonuses, and any funds held in the Advisor's clawback reserve pot at the time of their contract termination.
7. Default
7.1. If the Advisor accrues six (6) Missed Payments as defined in Clause 4.2, the loan will be considered in formal default.
7.2. Upon a formal default, the full outstanding balance, including all accrued interest, becomes immediately due and payable.
8. Consequences of Default
8.1. In the event of a formal default, the Company will pass the entire outstanding debt to a third-party debt collection agency. A 15% administration fee of the total outstanding amount will be added to the balance to cover collection costs.
9. Acknowledgement
9.1. The Advisor confirms that they have read, understood, and agree to be bound by the terms of this legally binding agreement. The Advisor acknowledges that they have been given the opportunity to seek independent legal advice before signing.