Why we don’t charge interest for CAP funding

For a limited time, until interest rates come back down, we don’t need to charge interest at all for CAP funding. We don’t want to make loans at our customary SONIA + 2.5% variable APR rate because it isn’t as good for clients.
The client benefits from this equity-only participation by our funding partners:
• Equity funding for up to 100% of the amount required
• Funders participation is conditional on a minority shareholding with the balance of the funding being provided as non-voting, common or redeemable preference shares.
• The common share distributions or preference share redemption come from the project Operation’s free cash flows
• No fixed repayment terms
• No interest on the funding
• Binding terms will be agreed between parties during the negotiations.