Which benchmark?
Identify the exact reference rate, observation period and calculation convention. Overnight SOFR, Term SOFR and a compounded rate are not interchangeable labels.
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Prepare. Compare. Verify.Better information.
Better financing conversations.
A practical preparation checklist, a guide to reading financing terms and direct links to the institutions that publish benchmark information.
A more useful first conversation
Build your financing brief.
Explain how much you need, why you need it and how the facility would be repaid. Requirements vary by lender, jurisdiction and structure.
Start with Sigma’s four core documents: three years of financial statements, current management accounts, a short business description, and amount and use of proceeds. The additional items below help develop the credit case.
Send a financing request ↗Preparation guidance: British Business Bank ↗. A completed checklist does not imply credit approval.
0 of 7 items ready
Use this list to prepare. No documents are uploaded here.
Download the preparation checklist ↓Beyond the headline spread
Read the whole offer.
Benchmark plus margin describes part of the pricing. Fees, repayment mechanics and contractual protections also matter when comparing offers.
Margin & floor.
Check the agreed margin and how any interest-rate floor is applied. Read the contract’s interest calculation and day-count convention.
Fees & prepayment.
Compare arrangement fees, ongoing charges and early-repayment terms, alongside the amount and timing of each principal repayment.
Sources: Sterling RFR Working Group — GBP loans guide ↗ · British Business Bank — business loans ↗. The sterling guide is specific to GBP conventions; terms vary by contract.
A shared vocabulary
Know what you are comparing.
- SOFR
- An overnight US-dollar benchmark based on borrowing secured by US Treasury securities. Published by the Federal Reserve Bank of New York.
- SONIA
- A transaction-based benchmark for overnight sterling borrowing. The Bank of England also publishes a SONIA Compounded Index.
- Policy rate
- A rate or target set by a central bank to implement monetary policy. It is distinct from the rate agreed in a commercial loan.
- Selic target & effective rate
- Brazil’s Copom sets the target. Effective Selic reflects overnight transactions backed by federal government securities.
- Security & guarantees
- A secured facility is backed by pledged assets. A lender may also request guarantees. Review those obligations with the repayment terms.
- Reference exchange rate
- A published reference for information and comparison. The ECB discourages using its reference rates for transaction purposes.
Go to the primary source
Reference library.
These sources explain the benchmarks and preparation guidance used here. For a current value, check the publication date at the source.
New York Fed
SOFR definition, methodology and published observations.
Secured Overnight Financing Rate ↗Bank of England
Federal Reserve
The FOMC’s federal funds target range and its role in monetary policy.
Policy rate ↗Banco Central do Brasil
Copom decisions and the distinction between the Selic target and effective rate.
Interest-rate decisions ↗European Central Bank
Reference exchange rates. The facility filter uses a dated snapshot, not a live transaction quote.
Reference exchange rates ↗British Business Bank
Preparing accounts, forecasts and supporting information for a business-loan application.
How to apply for a business loan ↗Sterling RFR Working Group
Interest conventions, margins and floors in sterling risk-free-rate lending.
Best practice guide for GBP loans (PDF) ↗Reference review: 31 October 2026. Educational information; lender requirements and contract terms vary. Sigma’s service descriptions, indicative facility ranges and entity information are supplied by the firm. External references do not imply an endorsement of Sigma.
Make your next conversation count.
Start with the amount, purpose and business context. We will discuss the information needed to assess your financing request.