Term loans: funding that helps your firm to grow faster

Accelerate your growth with £2m to £10m, tailored to your needs. Our term loans provide innovative businesses with capital to support ambitious plans for growth, from funding an acquisition to investing in research and development. We support UK SMEs where traditional lenders struggle to: we can help loss-making, early-stage firms in exciting sectors that are ready to scale.

How it works

A term loan is a fixed sum that can be drawn down in up to four tranches throughout the term of the loan, which is usually three to five years.

Term loans are designed to help your firm grow, by providing flexible funds that can be used in the way you choose. For example, you may wish to fund mergers and acquisitions (M&A) or research and development (R&D), strengthen your working capital position, invest in expansion or refinance an existing loan.

Term loans are ideal for companies with ambitious targets for growth (whether organic or acquisitive) and can be used to support businesses operating in a variety of sectors. At BOOST&Co, we don’t require a seat on your board, so our term loans also enable you to stay in the driver’s seat.

How can a term loan support your business?

Term loans can provide funding for a range of business needs, such as consolidation of existing debt, to purchase assets to enable growth, or to execute an acquisition.

They offer a flexible repayment structure so you can match repayments to your cash flow and are available with a choice of terms. Here at BOOST&Co, each of our term loans are tailored to your business needs.

What we need

The application process for our term loans is smooth and swift, with firms funded in as little as six weeks, but submitting a comprehensive application will speed things along.

We want to know about your targets and how you plan to achieve them, your management team, and your most important clients – all the key details about your story so far.

We are comfortable lending to businesses that are pre-profit, but we need you to demonstrate clearly that you are on track to reach profitability.

What you can expect from us

Every application for a loan from BOOST&Co is processed by people, not machines.

After you have applied, our experts will quickly gain a thorough understanding of your business, which helps us to assess how much we can lend. We will then tailor your loan after further discussions with you.

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. When it has been approved, you will be eligible to draw down the funds.

The essentials

  • Are you eligible?

  • Proven business model
  • Revenues of £2m+
  • Positive growth profile
  • At or near profitability
  • All sectors considered
  • May or may not be equity sponsored
  • Our terms

  • 1%-3% upfront fee
  • 8%-12% interest rate
  • 12 months interest-only
  • 24-48 months capital repayment
  • Debenture security
  • No covenants or equity
  • Customise your loan

  • Varied permitted use of funds
  • £2m-£10m loan amount
  • Tranches to suit your needs
  • Three to five-year term
  • Cost depends on overall risk profile

Frequently asked questions

1. What is a term loan? Click to expand answer

A term loan is a loan with a specified repayment schedule and a fixed or floating interest rate. It provides borrowers with a lump sum of cash up front, in exchange for specific borrowing terms.

2. Will I need a personal guarantee? Click to expand answer

Term loans are usually unsecured, which means they aren’t secured against your business assets. Because of this, some lenders could ask you to sign a personal guarantee when you apply for a loan.

At BOOST&Co we usually do not require a personal guarantee.

3. Why do businesses get term loans? Click to expand answer

A term loan can be used for anything from equipment, real estate or working capital.

At BOOST&Co, our term loans usually focus on strategies for accelerating growth including investment in R&D, expansion into new markets, acquisitions and refinancing.

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