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Commercial Business Loans
Do you need a Loan to fund the large-scale growth of your SME and are based in the South West? If so, our Commercial Business Loan could help you.
What are Commercial Business Loans?
Commercial Business Loans offer medium-term finance solutions for small businesses that need funding for large expenditures. Expansion and acquisition of assets can be a big hurdle for a lot of SMEs as they lack the financial equity needed for growth.
Commercial Loans help reduce these barriers to growth for SMEs by allowing them to gain access to large amounts of capital which they can then spread the repayment period over many years.
Typically, commercial business loans are available to SMEs that have been trading for over two years.
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 Commercial Business Loans be used for?
Oftentimes, when small businesses are presented with growth opportunities, they lack the upfront cash needed to progress. Commercial business loans are a great solution to enable your business to take advantage of its growth opportunities.
Commercial business loans are available for a variety of purposes, including working capital and cashflow, business acquisitions and deposits for commercial properties, operational needs, such as purchasing new equipment or machinery, and recruitment, including covering salaries for new starters.
How are Commercial Business Loans repaid?
Agreeing on repayment terms within a fixed timeframe helps the borrower to plan and budget. Repayment terms are agreed upon at the outset and are usually offered for up to 60 months.
Early repayment of the loan is often available, but some lenders may charge a penalty.
What security is needed for Commercial Lending?
Commercial business loans are unsecured and do not require tangible security, such as a charge over a property.
However, unsupported Personal Guarantees are typically required as well as a debenture from the company, which ranks behind existing charge holders.
Read more about Unsecured Business Loans
What are Personal Guarantees and Debentures?
Personal Guarantees are required so that in the instance that the business cannot repay the loan, the Borrower will become personally liable for the repayment of the loan.
Loans can 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 floating assets of a limited 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 rank behind existing charge holders.
The debenture will be registered at Companies House.
What are Personal Guarantees and Debentures?
Personal Guarantees are provided by the Borrower so that in the instance that the business cannot repay the loan, the Borrower will become personally liable for the repayment of the loan.
Loans can 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 floating assets of a limited 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 rank behind existing charge holders.
The debenture will be registered at Companies House.
What are the benefits of SWIG Finance Commercial Business Loans?
- Offers a medium-term finance solution
- Tangible security not necessarily required
- Borrow £25,001 up to £250,000
- Repayment terms up to 60 months
- We can lend by looking at the bigger picture – what is the business planning to do, who is behind it as well as what the business has done
- An assigned local business manager to support your loan application – they will spend time talking to the business owner to really understand what their plans are and how they hope 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.
We have Start Up Loans for businesses trading less than 3 years
Is my business eligible for a SWIG Finance Commercial Business Loan?
SWIG Finance provides Commercial Business Loans for South-West-based Limited Companies that have been trading for over two years. We can often lend to those businesses that can demonstrate how they will use large-scale commercial finance to grow their business.
What documents do we require for a Commercial Busines Loan?
- 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 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 for Commercial Lending?
SWIG Finance offers Commercial Business 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 Banks Recovery Loans 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 Commercial Business Loan?
To apply for a Commercial Business 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.
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