Growth Capital Loan

SantanderCB Growth Capital Loan

If your business needs finance without equity-loss, take advantage of the £200 million fund Santander has committed to fast-growth SMEs.

One of the pillars of our SME Breakthrough programme is Growth Capital. Santander UK has committed £200 million of 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 equity in your business. You also don’t have to put your personal assets at risk. It is flexible, too – you can use it to support your development or to fund capital expenditure.

Any business that qualifies for Breakthrough Growth Capital will find the due diligence process to be quicker and less expensive than for equity funding. What’s more, it comes with ongoing support in the form of Breakthrough’s training, mentoring and seminar programme.

Companies that apply must demonstrate a compelling growth story – a combination of increased turnover, profits and employee numbers. They will 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 or other research and development
  • Marketing and advertising initiatives or roll-out strategies.

Our Growth Capital loan is 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.

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
  • Growth Capital loans are paid back over two to five years
  • The interest margin is 10% of which 5 per cent above LIBOR is paid quarterly and the remaining 5 per cent is rolled up and capitalised, but may be higher subject to risk analysis
  • The capital is repaid at the end of the term or refinanced. 
  • Security: Second ranking security for the subordinated loan

N.B.  The arrangement fee is 3% of the loan amount. 

Where Next?

Suitable for

Growth businesses with annual turnovers up to £25 million with, ideally, a three-year trading history, demonstrable growth in sales, profits and/or employee numbers, a strong management team, plus a track record of sustainable cash generation and profitability.

Client Stories