Business growth & investment
A defined expansion project, new operating capacity or other identifiable investment in the business.
BUSINESS LOANS / ESTABLISHED UK COMPANIESBusiness loans for
Business loans for
established companies.
Growth, working capital and planned refinancing for established companies with a defined commercial purpose. Focus: £200k+ requirements.
Discuss your requirement
BUSINESS GROWTH / WORKING CAPITAL / REFINANCING
BUSINESS LOANS / AT A GLANCE
A business loan provides borrowing that the company repays under agreed terms. The amount, cost, repayment schedule, security and any guarantees depend on the business and provider assessment.
For a defined investment, working-capital requirement or planned change to existing borrowing.
WHAT WILL THE BORROWING SUPPORT?Start with the purpose.
Start with the purpose.
Build the repayment case.
A substantial loan needs a commercial objective and a credible explanation of how repayments will be met.
Working capital
A planned cash requirement supported by the trading cycle and a clear source of repayment.
Existing debt refinance
An evidenced reason to replace borrowing after allowing for settlement costs, new fees and terms.
SECURED & UNSECURED BUSINESS LOANSWhat security
What security
might be required?
Secured borrowing
- Read
- Charges and collateral
- Also check
- Guarantees, priority and covenants
Unsecured borrowing
- Read
- The actual agreement
- Still check
- Personal guarantees and director obligations
Secured borrowing uses agreed collateral. Unsecured borrowing does not necessarily mean no personal guarantee or no obligations for directors. The particular documents and terms need to be checked.
| Question | What to establish |
|---|---|
| Company security | Any proposed charge over assets and interaction with existing finance. |
| Personal guarantees | Who would give a guarantee, its scope and the circumstances in which it may be called. |
| Provider conditions | Financial covenants, reporting, consent requirements and permitted use of funds. |
Do not assume a structure is available because the business wants a particular amount. Provider appetite, financial strength and existing commitments shape the options. Obtain legal advice on security and guarantees where appropriate.
COMPARE NET PROCEEDS AND TOTAL REPAYMENTWhat does the business receive,
What does the business receive,
and what does it repay?
Compare the cash received after fees and settlements with the full repayment schedule. A headline interest rate or a smaller monthly payment does not describe the entire commitment.
01
Cash available for the business purpose
Deduct arrangement fees, existing debt settlements and any retained sums from the gross advance.
02
Repayment profile and term
Establish capital repayments, interest basis, total repayment and any final payment. Check whether the rate is fixed or variable.
03
Affordability under cautious assumptions
Consider seasonality, existing commitments and a less favourable trading scenario alongside the base forecast.
04
Early repayment and future flexibility
Check settlement terms, fees and any restrictions before assuming the borrowing can be refinanced or repaid cheaply.
WHAT DOES A USEFUL LOAN BRIEF INCLUDE?The amount and purpose.
The amount and purpose.
The evidence behind repayment.
Start with the company’s trading history, approximate turnover, use of funds, timing and existing borrowing. Explain the expected source of repayment.
The £200k+ focus is not a fixed approval threshold or a promise of unsecured borrowing. Larger and smaller cases depend on individual assessment.
Discuss a business loanEvidence that may be requested later
- Latest accounts and recent management information
- Relevant cash-flow forecasts and business bank information
- Existing finance balances and repayment commitments
- Evidence supporting the investment or funding purpose
- Details of available security, where relevant
An initial enquiry does not require document uploads. A suitable route and purpose should be agreed first.
LARGE BUSINESS LOAN QUESTIONSConsider the terms.
Consider the terms.
Check the assumptions.
Can an established company borrow £500,000 or more?
Requirements at that level can be discussed, but no amount is assured. The company’s cash generation, existing debt, purpose, financial information, security and provider appetite determine what may be supportable.
Can a substantial business loan be unsecured?
Potentially, depending on provider appetite and the business. Unsecured does not mean that a personal guarantee will not be requested. Check the exact proposed obligations.
Does a longer term make the loan cheaper?
A longer term may reduce periodic payments while increasing the total interest paid. Compare the complete schedule and total repayment on consistent assumptions.
Can borrowing be used to refinance existing business debt?
A refinance can be considered where there is a clear commercial purpose. Existing settlements, new charges, security changes and future repayments must be assessed together.
How long does a large business-loan decision take?
There is no universal turnaround promised here. Documentation, underwriting, security and transaction complexity affect timing. State any deadline early so dependencies can be identified.
When might another funding structure fit better?
Receivables-led working capital may suit invoice finance. A specific equipment or fleet purchase may suit asset finance. Compare the relevant structures against the purpose rather than assuming a loan is always preferable.
FURTHER READING / INDEPENDENT PRODUCT INFORMATIONBritish Business Bank: business loans
General guidance does not establish NBS lender access, capacity or terms for your business.
TAKE THE DECISION FURTHERThe relevant
The relevant
next question.
The next step is a conversationBring us the requirement.
Bring us the requirement.
Let’s consider the possibilities.
Discuss your funding
No documents needed to start.
No obligation to proceed.