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Unsecured borrowing for business expansion

Are you looking to expand your business? Perhaps you are looking to purchase a new premises, or you need funds for refurbishment. Andy Elley, Head of Commercial Mortgages, explains how we can help business owners achieve unsecured loans up to £10m.

Need access to some cash, but don’t want to take out another secured loan? We can help.

First up, for those of you who are unsure of the difference between the two:

A secured loan: Lenders will require a fixed asset as security in case you cannot repay the loan. E.g. when you take out a mortgage, the property may be repossessed by the lender if you fail to repay the loan. Secured loans are favoured by lenders, as they pose less of a risk.

An unsecured loan: Lenders do not take security over a fixed asset. Instead, they may take a debenture over a company and its floating assets or get you to simply agree to making the regular payments. You may incur additional charges or run the risk of being taken to court if you fail to make the payments as agreed.

We have access to lenders which are looking to support UK based small and medium-sized enterprises (SMEs) wanting to expand their business, offering loans from £250k to £10m on flexible terms. Instead of using a fixed asset as security, these lenders will take a debenture over the company and set an agreement which offers them security over the floating assets – stock, cash , fixture and fittings etc.

Funds can be used for the following purposes:

  • Purchase of a new business premises or new sites
  • Refurbishment of an existing premises
  • Purchase of new business equipment
  • Extra cashflow for a business project
  • Restructuring costs
  • Management buy-outs

To get started, you will need to be able to provide us with:

  • 3 years’ full accounts for the business – this allows the lender to undertake a cash flow analysis
  • Assets and liabilities statement
  • 6 months’ business bank statements

To give some examples, I recently helped the owner of an independent school secure a loan of £2.4m to assist with expansion plans. I have also helped chartered accountants raise £264k to repay existing loans which were deferred consideration within the business.

Need finance to help your business grow and aren’t getting the support you need? Give us a call on 0345 345 6788 or send us an email.



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