Growth capital loan

An innovative and flexible form of finance designed to help UK businesses grow, without giving away control or significant equity.

Available to

  • Businesses with annual turnovers up to £50 million with, ideally, a three-year trading history
  • Businesses demonstrating growth in sales, profits and/or employee numbers and a strong management team
  • Businesses with a track record of sustainable cash generation and profitability

Key features:

  • Santander Growth Capital loans are mezzanine loans typically available from £0.5 million to £5 million, and can work alongside additional senior debt facilities
  • The loans are paid back over two to five years
  • The interest margin is 10% of which 5% above LIBOR is paid quarterly and the remaining 5% is rolled up and capitalised, but may occasionally be higher to facilitate higher risk debt structures
  • The capital is repaid at the end of the term or refinanced
  • Second ranking security for the subordinated loan.
Growth capital loan - Key features

The arrangement fee is 3% of the loan amount.

We’ve committed £200 million of mezzanine funding to support high-growth SMEs that have advanced comfortably beyond start-up stage.

Growth Capital is debt finance, which means you won’t have to sacrifice control or significant equity in your business. It’s flexible too, so you can use it to support your development or to fund capital expenditure.

Any business that qualifies for Growth Capital will find the due diligence process to be quicker and less expensive than for equity funding.

Companies that apply must demonstrate a compelling growth story – a combination of increased turnover, profits and employee numbers. They’ll also need to show that the funding they require is linked clearly to growth. Projects that would be viewed favourably might include:

  • Investing in a new production line
  • Implementing new technology
  • Recruiting directors or other key personnel
  • Exploring overseas markets
  • Marketing and advertising initiatives or roll-out strategies
  • New product development and research and development.

Our Growth Capital loans are an innovative way for you to obtain funding to invest in the growth of your business without the need to dilute your ownership, as would be the case with equity finance providers.

Celebrating Growth Capital success

Fast growth businesses are the lifeblood of the UK economy. Through entrepreneurial spirit, innovation, determination and sheer hard work, they offer products and services that either create a real disruption in their markets or place the bar so high that they become the undisputed leaders in their fields. 

We brought together clients from across the UK to a reception at the National Gallery to celebrate the success of our Growth Capital loans in helping businesses to prosper.

growth capital loan

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR LOAN REPAYMENTS. All lending is subject to status and our lending criteria. The right to decline any application is reserved.

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