Enterprise Loans can provide an alternative source of finance for both start-up and established businesses across Yorkshire and The Humber, Lincolnshire and East Midlands, who are unable to secure all their funding requirements from the banks and/or other mainstream sources.
Ranging from £25,001 to £250,000 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.
- 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.
- Charities and Social Enterprises may also 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 £250,000.
- Interest rate parameters 9% – 15% 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 7 years).
- 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 Lending Manager is welcomed to help verify viability.