Enterprise Loans

Enterprise Loans support viable businesses and projects considered too high risk or early stage for mainstream sources of finance. They can be used to provide 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.

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 10% – 15% 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.