Your main options
| Option | Typical size | Best for |
|---|---|---|
| Unsecured term loan | £500k to £2m | Profitable businesses that want speed and no property security |
| Secured term loan | £500k to £5m | Larger amounts or longer terms, secured on property or business assets |
| Growth Guarantee Scheme loan | Up to £2m per group | Viable businesses with limited security; a 70% government guarantee to the lender |
| Revolving credit facility | £500k to £5m | Working capital you draw, repay and redraw, with interest only on what you use |
| Invoice finance | From £500k of funding | Businesses with a sizeable debtor book, releasing up to 90% of eligible invoices |
Who lends at this size
| Lender type | Typical approach |
|---|---|
| Challenger banks | Term loans, RCFs and Growth Guarantee Scheme lending for established SMEs, often quicker than the high street |
| High street bank business teams | Secured lending for long-standing, profitable customers |
| Specialist SME lenders | Faster decisions, more flexible criteria, unsecured lending up to around £2m |
| Invoice finance and ABL providers | Funding secured on debtors and stock, growing with sales |
Typical terms
| Term | Typical range |
|---|---|
| Pricing | From 6.5% a year, or 2.5% over Bank Rate on secured and revolving facilities |
| Size against earnings | Often 2x to 3x EBITDA, and up to 4x for strong, established businesses |
| Unsecured lending | Up to £2m |
| Growth Guarantee Scheme | Up to £2m per group, term loans up to 6 years |
| Term | 1 to 10 years for term loans; revolving facilities typically 3 to 5 years |
| Personal guarantees | Common on unsecured and smaller loans, often limited to part of the loan; less common where there is strong security |
What lenders look for
- At least two years of trading and filed accounts, with up-to-date management accounts
- Profits or cash flow that comfortably cover the new repayments
- A clear use of funds: growth, stock, a contract, an acquisition or refinancing
- Clean credit history for the business and its directors, or a good explanation for any issues
How long it takes
Unsecured and Growth Guarantee Scheme loans can fund in 1 to 4 weeks. Secured loans and revolving facilities typically take 4 to 8 weeks, including valuations and legal documents.
How GBF finds the right option
We review the business and what the money is for, show you the realistic options side by side, and approach only the lenders most likely to approve, so you avoid unnecessary declines on your credit file. We then manage the application, lender questions and completion.