Equity

Growth capital is suitable for companies that are looking to expand operations, enter new markets or finance an acquisition.

Have the facts before you apply

Equity is also called expansion capital or growth capital. It is a type of private equity investment, in companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition.

Businesses that seek growth capital will often do so to finance a key event in their business lifecycle. These companies are likely to be able to generate revenue and profit but unable to generate sufficient cash to fund major expansions, acquisitions or other investments.

Limited companies can sell shares in their business to an investor. The investor in turn will take a share of any profits or losses that the company makes. This can be a good way to fund growth, where you don’t have to make loan repayments and also add new skills and expertise into the business.

Access to growth capital can be key to pursue growth including for example facilitate expansion, sales and marketing initiatives, equipment purchases, and product development.

Funding
£10,000 to £5m or more
Repayment Terms
2 years to 5 years
Typical rates?

All interest rates quoted are indicative only as rates will only be confirmed based on the risk profile for each deal. Risk category associated with the deal. This is based on primarily debt survivability and security available for the loan

Advantages of Equity

    Access to business expertise. Aside from the financial backing, obtaining growth financing can provide a business with a valuable source of guidance and consultation


    Access to additional resources such as legal, tax and human resources


    Tapping into your financier’s connections could have tremendous benefits


    No need for loan repayments


Things to be aware of…

    Loss of control of your business as the size of the stake could determine how much say your investors have in shaping your company’s future direction


    Minority ownership status depending on the size of the investors’ stake in your company. which means you could be giving up majority control of your own business


    Equity finance is harder to find and a more complex form of financing


    You will be selling a stake in your business in exchange for an investment


    Detailed plans (a pitch deck) and financial forecasts will be required


Questions about Equity? We can help

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