SME Capital Ltd is a UK non-bank lender established in 2016, specialising in structured, cash-flow backed loans for established small and medium-sized enterprises. It offers funding typically ranging from £500,000 to £5 million, targeting businesses with at least three years of profitable trading and a positive EBITDA. The lender operates under FCA regulation and is accredited under the British Business Bank's Recovery Loan Scheme. Suitable for companies seeking medium to large-scale funding for growth, acquisition, or refinancing, SME Capital provides personalised loan structures beyond traditional bank offerings. For further exploration of business loan options, see our business loans overview and term loans details.
Key Features of SME Capital
SME Capital offers loan products with features that help manage cash flow and complement existing finance. Borrowers receive direct support from dedicated teams and can access government-backed schemes.
- Large loan sizes from £500,000 to £5 million, suitable for acquisitions and refinancing, see business loans.
- Flexible loan structures combining amortising and bullet repayments designed for cash-flow management, related to amortisation.
- Loans can be layered with existing senior or asset-based lending, linked to asset-based lending.
- Access to the government's Recovery Loan Scheme with 70% guarantee to support weaker security situations.
- Dedicated relationship managers guide clients through underwriting and loan life, aligned with the lenders directory detailing support approaches.
Funding Eligibility
SME Capital primarily works with UK-registered limited companies or LLPs with a minimum of three years’ profitable trading and at least £1 million turnover. Eligibility is limited to sectors excluding property development, financial services, and certain others. Personal guarantees are generally required from majority shareholders. To assess if your business meets criteria, review our guide on loan eligibility requirements and see info on personal guarantee requirements.
Loan Options
SME Capital offers two main structured loan types for established SMEs needing £0.5 million or more. Both include terms of several years and fixed or capped interest margins, tailored to business cash flow.
- Structured Business Loan (Secured Cash-Flow Loan): Loan amounts from £500,000 to £5,000,000 with terms of 3 to 7 years. Interest rates generally range from about 6.0% to 12.0% per annum fixed margin. The loans require personal guarantees and full debenture security. Further details on structured term loans and business loans overview.
- Recovery Loan Scheme Structured Loan: Government-guaranteed loans between £250,000 and £2,000,000 with 3 to 6 year terms. Interest rates usually range from 6.0% to 14.0% capped by scheme rules. Personal guarantees are capped or waived under certain thresholds. More about government-backed finance can be found in our business loans and loan refinancing options.
How to Apply
Applications start digitally with an online enquiry form where executive summaries and financials can be uploaded. SME Capital undertakes detailed due diligence, so borrowers should prepare financial statements and projections. Decisions take a few weeks, with funds drawn weeks later.
- Submit an online enquiry through SME Capital's digital portal, supported by our funding enquiry resources and application process guide.
- Provide required documentation such as 3 years of filed accounts, management accounts, financial projections, and shareholder details, in line with loan document checklists.
- Review of credit and financial due diligence follows with an indicative heads of terms usually within 5 working days. Final approval and funds typically take 4 to 8 weeks.
Funding Agent's Review of SME Capital Ltd
SME Capital caters to profitable mid-market UK SMEs needing structured, medium to large loan amounts for growth and refinancing. Their cash-flow oriented, flexible amortisation structure suits businesses that require more flexible finance than traditional banks offer but can provide security and solid financials. Prospective borrowers should consider the higher costs and extensive documentation compared to fintech loans. For an overview of business loans, use our eligibility checker and compare options on term loans and loan refinancing.
