Enterprise Loans

Enterprise Loans can provide an alternative source of finance for both start-up and established businesses across South Yorkshire, the North Midlands, Lincolnshire and The Humber who are unable to secure all their funding requirements from the banks and/or other mainstream sources.

Ranging from £1,000 to £150,000 Enterprise loans can be used for a variety of purposes which include additional capital or headroom in cash flow where additional bank support is unavailable and/or to provide gap funding for growth and development projects as part of a syndicated package.

If you are based outside of our area please go to www.findingfinance.org.uk to find a CDFI in your area.

Loan characteristics:

  • For early stage and established businesses, typically with a minimum of 3 employees.
  • New/start-up business considered if viability can be demonstrated.
  • Sole traders, partnerships or limited companies may apply.
  • Can be used for any legitimate and legal business purpose including:
    • Working capital
    • Purchase of equipment or machinery
    • Business expansion
  • Business assets considered as security if available.
  • Enterprise Finance Guarantee Scheme will usually be considered.
  • Personal guarantees from the director(s) (unsupported) are usually required for limited company lending.
  • Maximum loan value £150,000.
  • Interest rate parameters 9.5% – 14.5% over Bank of England base rate, calculated on reducing balance.
  • Arrangement fee 3%
  • Term of loans:
    • 3 year repayment for loans up to £25,000
    • Longer term considered for higher values (subject to maximum 5 years).

Application process:

  • A completed Enterprise Loan Application Form should be accompanied by a Client Declaration form.
  • Applications must be supported by a business plan (an extended Executive Summary might be considered acceptable for established businesses): financial forecasts should be included.
  • Annual accounts for established businesses will be required along with Management Accounts for the current year.
  • An initial enquiry with a Finance For Enterprise Investment Manager is welcomed to help verify viability.