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SME Loans
Do you need funding to grow your Small or Medium Size Enterprise and are based in the South West? If so, our SME loans could help you.
What are SME Loans?
SME loans are a form of debt finance and are specifically designed to help small and medium-sized businesses access the funding they need to grow and expand. These loans can be used for a variety of purposes, including working capital, equipment purchases, operational expenses, and more.
Our decisions are made by people, not computers, which means that we lend by looking at the bigger picture.
Our business managers provide support and guidance throughout the application process, and for the duration of the loan, to give our customers the best chance for success.
What can an SME Loan be used for?
SME Business Loans can be used for a range of purposes, including;
Growth Capital
Some of these purposes include:
- restructuring of operations
- technology investments
- product development
- launching into new markets
- new customer acquisitions
If your business is growing and your cashflow indicates a clear need for funding, you will have a good case for Growth Capital finance.
More Information on Growth Capital Loans
Operational Expenses
SME Loans can support operational expenses such as purchasing stock and materials, marketing for new product launches, working capital, and investment into green technologies.
Business Acquisition
An SME Loan can also be used for purchasing an existing business.
More Information on Business Acquisition
Recruitment or Staff Costs
SME Loans can help fund recruitment for new job creations, as well as upskilling for existing employees.
Purchasing Equipment
SME Loans can be used for purchasing new equipment or machinery that will help the business to grow.
More information on Business Equipment Loans
Net Zero Investment
SME Loans can be used for investing in making their business processes more sustainable or reducing their carbon footprint.
More information on Net Zero Business Loans
We have Start Up Loans for businesses trading less than 3 years
Is my business eligible for an SME loan?
SWIG Finance serves SMEs in the South West, therefore any businesses that are located outside of the South West region will not be eligible.
Only incorporated businesses can apply for a business loan. No public limited companies will be considered for this loan.
- ✓ You must be 18 or over.
- ✓ Limited companies only can apply.
- ✓ You must be a business with a clear plan for the purpose of the loan.
- ✓ The business must be able to demonstrate viability and growth potential.
- ✓ The business must be based in the South West of England.
- ✓ Applicant businesses will typically have been trading for more than 2 years.
How much can an SME borrow from SWIG Finance?
SME Loans from £25,001 up to £250,000 are available.
What are the interest rates and fees?
For a business loan of £25,001 to £250,000 repayable up to 5 years, the interest rate is 12% ABR.
There is a 5% arrangement fee at outset, which can be added to the loan. If any payments are missed or late there may be additional fees.
“We chose to work with SWIG Finance because, unlike other lenders, at SWIG you can talk to a person. Ultimately, SWIG Finance were able to support our business by looking at the bigger picture – something which other lenders are not willing to do.”
Customer Testimonial, SME Business Owner
What is the difference between an SME loan and a Start Up Loan?
SME loans are aimed at businesses that have typically been trading for over two years. These loans are unsecured but require an unsupported personal guarantee.
Start Up Loans are personal loans to be used for business purposes. The loans are designed for new and early-stage businesses that have been trading for less than three years.
How to apply for an SME loan?
To apply for an SME loan, you will need to complete our online application form.
Information we will need to assess your loan request:
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since the most recent year-end to date
- Cashflow forecast for a minimum of 12 months, identifying the loan requirement and showing spending
- Agreement to Open Banking
- Credit Report for all directors
- Business Plan
- Details of any agreed outputs e.g. number of jobs created or safeguarded
Apply now to take the next step in securing the funding your business needs.
Do you need to borrow less than £25k?
We have Start Up Loans available for businesses that have been trading for less than 3 years.
Apply for a business loan now
Please complete the below enquiry form and a member of the team will be in touch.
What can an SME Loan be used for?
See below the answers to our most frequently asked questions about SME Loans.
Is your business a small to medium-sized enterprise?
Businesses with up to 250 employees are considered small or medium-sized.
What are SME Loans?
Can I get an SME loan with bad credit?
We understand that there may be instances where your credit score might be less than perfect. For example, you may have had a CCJ in the past.
At SWIG Finance we take a personal approach to lending and base our decisions by looking at the bigger picture. So even if your credit rating has experienced historical issues, we still welcome your application, providing there are no outstanding liabilities affecting your business.
I have been rejected by the bank for funding, can I still apply for an SME loan?
Yes – 9 out of 10 of our SME customers have been rejected for bank funding.
Because our decisions are made by people, not computers, we are able to base our lending decisions by looking at the bigger picture.
Consequently, we don’t use automated credit-scoring methods to assess our applications and each business is judged on its own merit.
What other funding is available?
For businesses that have been trading for less than 36 months, we have Start Up Loans available as part of the government-backed Start Up Loans Scheme. Find out more here.
SWIG Finance is an accredited lender under the Recovery Loan Scheme (RLS). Find out more about RLS here.
How to apply for an SME loan?
Funding Boost for The Boys Who Sew
Case Study, SME
Gloucestershire-based curtain makers, The Boys Who Sew, is the latest business to be supported by SWIG Finance. The £36k loan, which was backed by the British Business Bank’s Recovery Loan Scheme (RLS), will be used to fit-out the new premises and invest in green technology, such as the installation of solar panels and an electric vehicle, in support of their Net Zero journey.