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Business Equipment Loans
Do you need a loan to expand your Small or Medium Size Enterprise and are based in the South West? If so, our Business Equipment Loans
could help you.
What is Business Equipment Loan?
Business equipment loans are a medium-term finance solution for businesses that need to purchase new equipment or machinery. A Borrower will typically use this type of finance to help accelerate business growth.
Once the term loan has been agreed upon, the repayments are made within a specified timeframe.
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.
How can Business Equipment Loans be used?
There are multiple reasons why you might need a Business Equipment Loan. For example, you may have secured new contracts which require new equipment. You might want to invest in new technology. Or you might find that your machinery is outdated, and you need more efficient infrastructure to help with your Net Zero plans.
These scenarios can be expensive, and oftentimes, business owners find that they do not have enough ‘spare’ working capital to cover the investment internally. SWIG Finance can often lend where there is a clear need for new equipment to help the business to prosper and grow.
How are Business Equipment Loans Repaid?
Repayment terms are offered for up to 5 years and the term is agreed upon with the Borrower at the outset. Fixed repayment terms are useful for allowing the Borrower to budget.
Typically, personal guarantees and a company debenture are required.
What are Personal Guarantees and Debentures for Business Equipment Loans?
Personal Guarantees are provided by the Borrower so that in the instance that the business cannot repay the unsecured loan, the Borrower will become personally liable for the repayment of the loan.
Loans may be settled in full or by way of an arrangement to repay the loan over an agreed period of time. The Borrowers’ principal private residence is excluded from Personal Guarantees given to SWIG Finance. Debentures are a charge against the fixed and floating assets of a company.
A debenture gives the lender some rights over these assets and also the ability to step in and run the company if necessary. Debentures given to SWIG Finance will typically rank behind existing charge holders.
The debenture will be registered at Companies House.
What are the benefits of a SWIG Finance Business Equipment Loan?
- Offers a medium-term finance solution
- No tangible assets are required as security
- Borrow £25,001 up to £250,000
- Repayment terms up to 60 months
- We can lend by looking at the bigger picture – what the business is planning to do and who is behind it, as well as what it has done
- An assigned local business manager to support your loan application – they will spend time talking to the business owner to understand their plans are and how they aim to achieve them.
- Ongoing relationship support for the duration of the loan – our Business Managers are there to talk to if the business owner needs some help and guidance
Is my business eligible for a SWIG Finance Business Equipment Loan?
SWIG Finance provides Business Equipment Loans for South-West-based Limited Companies that have been typically trading for over two years. If your business needs finance for business equipment, you need to demonstrate that these new assets will help improve efficiency and/or enhance productivity.
What documents do we require for Business Equipment Loans?
- 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 Report
- Business plan / executive summary overview
- Details of any agreed outputs e.g. number of jobs created or safeguarded
- ✓ 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 have Start Up Loans for businesses trading less than 3 years
“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 funding sources are available?
SWIG Finance offers Business Equipment Loans to SMEs through its own ethically sourced capital and lends through a sustainable lending framework.
SWIG Finance is also an accredited delivery partner for the British Business Bank’s Recovery Loan Scheme, which means we will lend where tangible security isn’t available.
For businesses that have been trading for under three years, SWIG Finance also offers Start Up Loans through the government-backed Start Up Loans Scheme. Loans range from £500 up to £25,000. These are personal loans for business use.
How to apply for a Business Equipment Loan?
To apply for a Business Equipment 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 requirement for the business loan 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.
Growth Funding for Mobility Business
Case Study, SME
A Chard business that provides mobility scooter and wheelchair accessories has received a £50k business loan to boost its growth plans. Vinyl Value, which was established 40 years ago, was acquired by David Evans in 2021. Since then, the business has developed new product lines and streamlined its manufacturing processes. Backed by the British Business Bank’s Recovery Loan Scheme, the new funding will support their ambitions to grow their market share through investing in new staff, machinery and marketing.