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Growth Capital
Do you need a loan to expand your Small or Medium Size Enterprise and are based in the South West? If so, our Growth Capital could help you.
What is Growth Capital?
Growth Capital is a form of medium-term debt finance available to growth-orientated businesses that are looking to expand their operations. When a company experiences periods of growth, greater expenditure is often needed beforehand to facilitate an increase in revenues. At this stage, many businesses find that cash injections are required to support cashflow.
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 does Growth Capital differ from Venture Capital?
Growth Capital is aimed at more mature businesses that are experiencing growth. This type of funding is facilitated through loans and is a form of debt finance. The business, therefore, retains its equity.
Venture Capital is a form of equity finance and is aimed at early-stage businesses. Venture Capital investors will be looking for a return on their investment and typically they will lend in return for an equity stake in the business.
Where can you access Growth Capital?
Businesses that are experiencing growth may find that traditional lenders, such as banks, may not be able to support their capital growth investment. It’s frequently reported that growing businesses do not tick all of the boxes for traditional lending, and many may find that their funding options are limited.
Traditional lenders typically judge businesses on historical performance which, for growing businesses, is far from where the business is now or where it’s heading.
Those SMEs who are experiencing growth may need to opt for a lender who can base their decisions on projection-led assumptions. Because CDFIs, like SWIG Finance, base their lending decisions on the bigger picture, they can lend to projection-led businesses. SWIG Finance specifically aims to support SMEs who cannot access the funding they need from mainstream lenders.
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. Personal guarantees provided to SWIG Finance exclude the Borrower’s principal private residence.
Debentures are charged against floating assets. The debenture will be registered at Companies House and the Borrower agrees that they will pay the registration costs associated with the creation of this security. Debentures taken by SWIG Finance will typically rank behind existing charge holders.
What are the benefits of SWIG Finance Growth Capital?
- Offers a medium-term finance solution
- No tangible assets are required for security
- Loans from £25,001 up to £250,000 are available
- Repayment terms up to 60 months
- We can lend to projection-led businesses
- An assigned local business manager to support your loan application
- Ongoing support for the duration of the loan
What can Growth Capital be used for?
Business expansion can take many different forms and growth capital can be used for a number of purposes:
- Some of these purposes include:
- Restructuring of Operations
- Growing your team or upskilling your existing team
- Technology Investments
- Product Development
- Launching into New Markets
- Purchasing Equipment
- New Customer Acquisitions
- Purchasing Existing Businesses
If your business is growing and your cash flow indicates a clear need for funding, you will have a good case for Growth Capital finance.
Have you been trading for less than 3 years?
You could be eligible for a Start Up Loan; get in touch today!
Is my business eligible for a SWIG Finance Growth Capital?
Growth funding is typically available to South-West-based Limited Companies that have been trading for over two years. We can also support business acquisition where there is evidence of a growth trajectory.
What documents do we require for Growth Capital?
- Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
- Management accounts for the period since 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
- Credit Report for all directors
- Business plan / executive summary overview
- Details of any agreed outputs e.g. number of jobs safeguarded or created
- ✓ 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?
SWIG Finance offers Growth Capital Loans to SMEs through its own ethically sourced capital and lends through a sustainable lending framework. Loans are made to incorporated businesses only.
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 business acquisitions, SWIG Finance can explore a finance package that combines more than one loan product, where this is in the best interest of the customer
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 Growth Capital?
To apply for an Unsecured 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.
Apply for a business loan now
Please complete the below enquiry form and a member of the team will be in touch.
Growing Nursery Receives Further Funding
Dorset-based Twynham House Nursery School has received further growth funding of £200k through SWIG Finance. The business began trading in 2021 at the start of the COVID pandemic and, despite a challenging start, has gone from strength to strength. SWIG Finance first supported Twynham House in its early stages with a CBILS-backed loan. The latest cash injection will help establish a second new nursery site.