Growth Finance

3rd June 2015

Santander: Now offering specialist growth finance for TechCo’s
Santander have signalled their appetite to lend to the Technology sector by establishing a dedicated £200m growth capital fund, marketed under their ‘Breakthrough’ banner. This is specifically designated to bridge the funding gap faced by fast growing SME’s. Funds borrowed from this source must be used to finance growth, eg:

  • Establishing a new production line,
  • Securing top talent,
  • Expansion into international markets,
  • Marketing and advertising initiatives.

The obvious advantages of this mezzanine funding source are that it avoids the need to dilute equity and it can be structured without personal guarantees. Other key features:

  • Loans are typically available from £0.5 million to £5 million and can work alongside additional senior debt facilities
  • Growth Capital loans are paid back over 2 to 5 years
  • The interest margin is 10% of which 5 per cent above LIBOR is paid quarterly and the remaining 5 per cent is rolled up and capitalised, but may be higher subject to risk analysis
  • The capital is repaid at the end of the term or refinanced.
  • Security: Second ranking security for the subordinated loan
  • The arrangement fee is 3% of the loan amount


 
Other items in Blogs
 
Hannah Wisbey
17th October 2017 Actors: IR35 tax rules will probably apply.

  In a recent tax tribunal test case, relating to the well-known actor Robert Glenister, HMRC were challenged as to whether the IR35 intermediary tax rules should apply to an actor earning his living through a personal service company.   As is typical with individuals providing their personal services through an intermediary company, Mr Glenister…

Read More »

Donna Gidney
17th October 2017 Start-Ups: Choosing a Business Name

  What’s in a Name? Having decided to start out in business, you will need to choose an operating name.  This is an important decision as it is the first thing that customers notice about you.   There are several factors to consider, including:   Relevance & Personalisation You may want to refer to your…

Read More »

Neil Groom
12th October 2017 Trust Registration Service

  HMRC has released guidance for trustees and their agents for the new online Trust Registration Service (TRS) which has been operating since the middle of July. The new service replaces the old form 41G, as well as a section of the trust tax return used to report changes in trustee contact details.   Trusts…

Read More »

Mark Burrows
11th October 2017 Making Tax Digital – will free software be available?

  When Making Tax Digital (MTD) was first announced, HM Revenue & Customs said that free software would be available for the most straightforward small businesses.  Under MTD records of business income and expenses will be required to be kept digitally using a software product or app.   HMRC have since provided clarification on which…

Read More »

Thomas Carter
11th October 2017 Xerocon London 2017

Two fantastic days at Xerocon London on 4th and 5th October as 2000 attendees from 24 countries descended on the ExCel, the annual event for Xero Partners. Over the two days, four of our staff: Tom Carter, Dan Coleman, Steph Tinkler and Chip Moore attended the event. It was an opportunity to learn about new…

Read More »

Philip Peters
5th October 2017 HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

Read More »