Compare ^{Private Debt Finance} Options For £600,000 Funding

Direct lending involves profitable businesses with at least two years’ trading history and strong financials borrowing between £500,000 and £5 million. Applications require full financials and go through detailed due diligence, credit assessment, and lender approval. Sectors such as manufacturing, technology, and retail commonly use direct lending to boost cash flow or fund new projects, benefitting from terms between 12 and 60 months and rates from 6% to 12% per annum.

Mezzanine finance targets businesses with strong track records and profitability, allowing them to borrow between £1 million and £10 million on terms from 24 to 84 months. Processes involve submitting business plans, financial analysis, and contract negotiation before capital is provided. Sectors like construction and healthcare use mezzanine funding for strategic initiatives, with rates typically from 8% to 15% per annum and approvals within 4 to 6 weeks.

Venture debt is suitable for high-growth businesses with solid revenues, including tech startups and SaaS firms. Loans range from £250,000 to £2 million, with terms of 12 to 36 months and interest rates from 7% to 20% per annum. The process involves financial review and negotiation, often including warrants, with decisions in 3 to 5 weeks. It enables fast-growing companies to secure funding without diluting equity prematurely.