Defining Growth Capital

BOOST&Co does things a little differently. That’s especially true of how we provide growth capital. For businesses that are ready to scale, BOOST&Co offers capital of £2 million to £10 million in just one to four months. We offer solutions that require no equity dilution, so that you don’t need to sacrifice control of your company or your equity.

Interested? To secure growth capital from BOOST&Co, you need to have a fully formed management team, a functioning product, and proven routes to market that are already delivering revenues.

When you are exploring your funding options, it is important to know what is out there, and to note that growth capital structured as a loan is different to growth equity finance for a number of reasons. For more on the differences between a growth capital loan and equity finance, you can have a look at our handy infographic.

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Growth Capital Loan

Growth Capital 101

A growth capital loan is a form of funding that provides capital for growth – it’s as simple as that. These loans are available to companies with an established business model and great growth prospects. They are structured as debt, and involve little to no equity dilution.

What you need, is to have an established business model, a revenue run rate of at least £5 million, and to be profitable or within a few months of profitability.

Because we look at your company’s future growth potential, BOOST&Co is able to provide funding earlier, and in larger amounts than traditional banks. The interest rates of growth capital loans reflect this higher risk profile, but require no covenants.

Customised Loans

Each of BOOST&Co’s loans is individually tailored to the specific company and its situation. Each loan is unique. Just like your business, management team, and situation. While every loan is different, our standard terms are as follows:

  • Size: £1 million to £10 million, funded in one go or in instalments to make the amount relevant to the funding needs
  • Duration: Three to five years
  • Repayment profile: sometimes includes an interest-only period of 12-18 months, and then monthly amortisation of  capital and interest
  • Covenants: typically, none

Growth capital loans are made up of three basic documents: a loan agreement, a debenture and an equity kicker.

Talking Terms

So this funding option would be perfect for your business, and now you want to talk terms. Growth capital loan terms vary as widely as the companies that receive them, because they are designed specifically for each company. Essentially, the price of the financing depends on the amount required, and the use of the loan. In all cases, growth capital loans consist of a combination of:

  • Fee: 1 to 2% of the loan amount
  • Interest rate: 9 to 12% of the capital outstanding
  • Equity kicker: 5 to 15% of the amount lent, in warrant shares.

For more information, you could have a look at our infographic detailing typical terms, or download a sample loan term sheet.

You Are Not Alone

From working capital, to site roll-outs, and M&A/MBI/MBO; BOOST&Co has helped dozens of companies to expand their operations:

Reach Out

We’re always looking for fast-growing businesses to invest in. Our investment process is fast, and therefore less time consuming for your management team. BOOST&Co can typically provide a term sheet in just two to three weeks following initial meeting. Thereafter, the due diligence process takes two to four weeks, after which your funding will become available. You can find more information on BOOST&Co’s fast and simple investment process here.

If your business meets our basic investment criteria and is ready to enjoy the benefits of a growth capital loan, you can apply now. Just click on the button. You know you want to.

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