Term loans
You have a proven business model and a strong proposition
Now let’s accelerate your growth
If you are ready to fuel the next stage of your growth journey, a term loan could help realise your vision.
With the flexibility to use funds as you see fit – whether that be investment in R&D, M&A activity, expansion and many other growth initiatives – a term loan gives you access to significant capital without diluting equity.
Available to draw down in tranches throughout the term of the loan, a term loan is ideal for businesses with ambitious growth targets in a wide variety of sectors.
A great fit if you require:
Flexibility
Invest in a variety of growth initiatives including R&D, expansion, Capex and M&A, with tranching available to suit your needs.
Growth headroom
Typically up to 12 months interest-only period, with capital and interest amortising over the remaining term.
No loss of control
Covenant-lite funding that doesn’t dilute your equity.
Empowering a high-growth trajectory: Patients Know Best
Growth capital will enable the pioneer in innovative health software solutions to further scale its offering in the UK, as well as expanding internationally.
Read storyAccelerating the growth trajectory of Accountancy Cloud
Growth capital to enable the cloud-based accounting platform to expand the business across the UK, with new roles across finance, marketing, sales and product development.
Read storyA term loan looks like a good fit for my business:
What’s next?
The first step towards accelerating your growth is submitting a funding enquiry.
All enquiries submitted to Growth Lending are processed by people, not machines, so you can be certain that a member of our team will work to understand your unique requirements
To help us get things moving quickly, ensure you have key information ready such as your targets, how you plan to achieve them, your management team and your most important clients. As a responsible investor, we will also consider how your business aligns to our Environment, Social and Governance (ESG) principles.
Once we have all this information, we’ll be able to assess whether we’re a good fit for your needs and how much we’ll be able to lend. We can then have further discussions with your management team to tailor the loan to your specific goals.
When everyone is happy, we will issue a term sheet, summarising the details of the loan. The deal will then go through our due diligence process and when it has been approved, you will be eligible to draw down the funds and implement your growth plans.
Check your eligibility and get the process started below.
Get growth going
If you are ready to accelerate your growth plans, we are ready to support you.
Access more capital, at an earlier stage than what is offered by non-specialist lenders
Maintain control with a covenant-lite facility and minimal equity dilution
Partner with a high calibre team, experienced at lending to high growth businesses
FAQs
View all FAQsA term loan is a type of growth capital that is designed to accelerate the growth of a business. It is usually structured in the form of a loan that is repaid over a set “term” – hence the name.
Growth Lending term loans range from £2m to £10m and can be drawn down in tranches throughout the term of the loan – usually three to five years. This makes term loans a flexible option that can be used for a variety of growth initiatives including M&A, investment in R&D, expansion and refinancing.
This type of capital is non-dilutive and is ideal for companies with ambitious targets for growth (whether organic or acquisitive) and can be used to support firms operating in a variety of sectors.
The term “growth loan” covers a wide variety of financial instruments that are used to support a business’ growth.
There are many types of growth loans, but at Growth Lending, we structure these in the form of a term loan because the debt is drawn down and repaid over a set term (usually three to five years).
You can find more information about the different types of growth loans here.
A term loan can be used for a variety of things, but a Growth Lending term loan focuses on supporting strategies for accelerating growth.
Popular reasons to borrow include:
- M&A
- Investment in R&D
- Growing sales and marketing functions
- Fulfilling a new contract
- National or international expansion
- Refinancing an existing loan
To secure a term loan from Growth Lending you must have a proven business model with revenues of more than £3m. Your business must be registered in the UK, have a trading history of more than 12 months and operate a B2B business model.
Our term loans are most suitable for businesses that are growing quickly and while most sectors will be considered, we have a strong track record of working with technology, media and telecommunications (TMT) businesses, as well as those in the healthcare / health tech and professional services sectors.
Profitability is not essential, but you should be able to demonstrate how your business will get there.
Usually, a personal guarantee is not required for a term loan from Growth Lending. Instead, we secure our term loans via a debenture, enabling your business to access capital without providing collateral or diluting equity.