Facility size · £1m – £5m
At £1 million the lender universe shifts. Clearing banks, challenger banks, debt funds and private credit all compete, and each will look at the same business through a different lens. The process resembles a small transaction: information memorandum, indicative term sheets, credit approval, due diligence and legals.
Lowest cost, tightest covenants, usually bank-provided.
Single blended facility, bullet repayment, faster and more flexible.
Receivables, stock, plant and property combined into one borrowing base.
Fills the gap between senior debt and equity in acquisitions.
Leverage is usually assessed against a maintainable EBITDA figure, adjusted for one-off items that you should identify and evidence yourself rather than leave the lender to find.
Diligence at this level typically includes a financial due diligence report, asset valuations for ABL, and management interviews. Budgeting time and cost for that from the outset avoids a stalled process.
Six to twelve weeks from mandate to drawdown in most cases.
Senior bank debt is the cheapest option where covenants can be met. Private credit prices several points higher but often lends more, faster, and with fewer amortisation constraints.
Not always, but audited or independently reviewed figures widen the lender pool significantly and usually improve pricing.
Often yes. Where a business is asset-rich, a borrowing base against receivables, stock and plant can release more than a cash-flow loan would.
Yes — security must be perfected in each jurisdiction, which adds legal time. We structure for that at the outset.
Tell us what the £1 million is for and where repayment comes from. We structure the request and approach the providers whose criteria fit. No upfront fees — all charges are due only once funding is in place.
Start a funding request