Aperture has partnered with Asgard Financial Services Limited (trading as Sprout Loans) a regulated, unsecured, direct lender, specialising in providing early settlement loans for people who are currently in an IVA. The loan from “Sprout” is exclusively to make a settlement/exit offer to creditors typically after 3 years of the IVA.

If creditors accept the early settlement offer, you will pay off the IVA up to 2 years earlier than scheduled and receive your IVA completion certificate shortly thereafter. Your IVA payments will then be replaced with a fixed, monthly payment to “Sprout” for the agreed term of your loan.

Aperture will make eligible clients aware of this potential option once they have reached 3 years, at which point the early settlement loan from Sprout is available.

Strict criteria apply which means not all clients become eligible for application. To be considered eligible to apply, you must have shown a commitment to your IVA by making your agreed monthly payments on time.

Note: Minimum initial eligibility criteria* includes: your IVA is up to date, with no more than one missed payment in the last 12 months, or two missed payments in the last 24 months - with no current IVA arrears or council tax arrears. (*Subject to change)

Representative example: If you borrow £2,000 over 24 months at Representative 39.9% APR and an Interest rate of 39.9% p.a. (fixed) your monthly repayments will be £116.06 and Repayments will total £2,785.44.

Feedback from individuals who have opted for IVA early settlement can be viewed on the Sprout reviews site.

https://www.reviews.co.uk/company-reviews/store/sprout-loans

Disclaimer: Aperture is an Appointed Representative of Asgard Financial Services Ltd (trading as Sprout Loans) who is authorised and regulated by the Financial Conduct Authority. Aperture is a credit broker and not a lender. You pay no fees to Aperture in our capacity as a broker and we do not receive any payment from Sprout. Aperture cannot guarantee loan acceptance. Sprout will complete their own assessment of the loan application, in accordance with their lending criteria and the decision to lend rests solely with Sprout.

It is important that any decision you make is balanced, informed and right for your circumstances. A summary of the risks and benefits can be found on the Sprout Website (www.sproutloans.co.uk), but as a balanced overview:

Benefits would include:

  • A fixed monthly payment until the end of the term
  • No longer being subject to Income and Expenditure Reviews each year which you’d usually undertake within the IVA
  • The debt write-off agreed under your IVA would be legally formalised by your creditors, rather than waiting until the end of your IVA.
  • Any overtime/bonus/windfalls that you receive would remain yours after your IVA is fully closed (with the exception of certain financial mis-selling claims or amounts already due to the IVA)
  • Being able to obtain your IVA closure certificate early
  • The ability to sell a property without IVA restrictions
  • The ability to apply for a job which requires solvency

On the other hand, risks include:

  • Lack of flexibility that an IVA can offer if your circumstances change negatively and payment failure can have serious consequences for your financial health.
  • Depending on the term, you could end up paying more and for longer than you would if you remained in your IVA.
  • Some people may miss the IVA’s structure and security