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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 business loan?
The CBILS Scheme closed with effect from 31 March 2021. Learn more here.
Business Loan characteristics
- ✓ Loan value from £25,001 – £250,000
- ✓ Finance for working capital or growth (e.g. equipment)
- ✓ Tangible security is not required
- ✓ We are an accredited Growth Guarantee Scheme lender
- Terms & Conditions Apply
Security
- Fixed & floating debenture taken (ranking behind existing charge holders, if appropriate)
- Unsupported personal guarantees are typically required for business loans
Information required to apply for a business loan:
– Last 2 years' full accounts (if available)
– Most recent management accounts
– Cashflow forecast for a minimum of 12 months
– Last 6 months business bank statements
– Credit Report for all directors
Amount & Term
£25,001 – £250,000 repayable up to 60 months
Interest Charge
Charged at 12% ABR
Fees Arrangement
Fee of 5% charged at outset
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 Loans to small businesses 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 Growth Guarantee 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 funding?
To apply for a Business Loan, you will need to complete our online application form.
Information we will need to assess your loan request:
- Last 2 years’ full accounts (if available)
- Most recent management accounts
- Cashflow forecast for a minimum of 12 months
- Last 6 months business bank statements
- Credit Report for all directors
Apply now to take the next step in securing the funding your business needs.
Our Application Process
We assess each business on its own merit. To apply, please complete our online enquiry form below. Initial enquiries welcomed to establish suitability. Once we have received all the information we need to consider your application, the decision will be made as soon as possible.
Apply Now
If you’re ready to take the next steps, apply now!
Tips & How-To Guides
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Got a question?
Give us a call today and we will answer any question you may have.
Is my Business eligible for a Business Loan?
Business Loan characteristics
✓ Loan value from £25,001 – £250,000
✓ Finance for working capital or growth (e.g. equipment)
✓ Tangible security is not required
✓ We are an accredited Growth Guarantee Scheme lender
Terms & Conditions Apply
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.
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.