The Reserve Rate is the maximum average interest rate that a borrower has agreed to pay to lenders. All borrowers through FK are committed to draw down funds immediately following the close of an auction, provided the auction has been 100% filled and has reached its reserve rate. Prior to the start of an auction, the Borrower is required to agree a maximum average rate (known as the Reserve Rate), over which they would not be prepared to take the loan. The reserve rate varies from auction to auction and can be influenced by a number of factors including perceived risk, Shield Rating, external credit rating, trading history and projected future performance, loan term and by the borrower’s particular circumstances.