Ambitious businesses with the potential to expand rapidly often find it difficult to get the funding they need in order to grow.
Without tangible assets to borrow against, or a reluctance to give away control with private equity or venture capital, it can be hard to find a suitable solution.
This is our innovative and flexible form of finance that could help your business grow without giving away control or significant equity.
From investing in new people or sales & marketing initiatives to research & development plans or strategic acquisitions, we can help fund your growth with £200 million worth of growth capital loans, which are structured to minimise the impact on your cash flow.
We’re also making £100 million available to SME house builders through a combination of senior and mezzanine debt finance, providing the funds to help support business investment and job creation in this sector.
To qualify for a growth capital loan, your business must have a turnover of between £500,000 and £50 million per annum while posting annual growth of around 20% or more in a combination of turnover, profit or employment.
- Santander Growth Capital loans are mezzanine loans typically available from £0.5 million to £5 million and can work alongside additional senior debt facilities.
- Growth Capital loans are paid back after two to five years.
- The interest margin is typically 10% of which 5% above LIBOR is paid quarterly and the remaining 5% is rolled up and capitalised. An additional return, payable at maturity, can be structured to reflect higher risk lending.
- The capital is repaid at the end of the term or refinanced.
- Security: Second ranking security for the subordinated loan.
- The arrangement fee is 3% of the loan amount.
‘Santander’s holistic, detailed approach was unusual and refreshing. Now we are many months into the deal, it is the ongoing support that has been absolutely fantastic. It has not just been banking-related, but support for all facets of the business.’ Alex Trimnell, MD, Muc-Off
Supporting Charities and Social Enterprises
If you’re a charity or social enterprise you could benefit from the £30 million Third Sector Loan Fund, which is managed by social enterprise fund manager Social & Sustainable Capital (SASC).
To support investment in the sector, we’ve committed £13.5 million to help your social enterprise access the secured or unsecured borrowing you need to deliver scalable and sustainable solutions for your business.
The fund’s investments range from £250,000 to £3 million and to be eligible for a loan you must be a charity and/or regulated Social Enterprise based in the UK.
Lending is subject to status and lending criteria.