Business loans for assets & equipment
Funding to help established businesses invest in the premises, machinery, equipment and technology they need to operate, increase capacity and grow.
What the funding can be used for
- Machinery & equipment
- Fit-out of new premises
- Systems & technology
- Specialist or regulated equipment
Can a business loan be used to buy equipment or improve premises?
Yes. Business loans can be used to fund investment in the physical assets and infrastructure a business needs to grow or improve productivity. This can include new machinery and equipment, specialist or regulated equipment, technology and systems, the fit-out of new premises or investment associated with moving to a larger site.
Mercia Business Loans supports established businesses making strategic investments that can increase capacity, improve efficiency or enable the next stage of growth.
case studies
Who we've backed
See how businesses have used Mercia funding to invest in premises, equipment, automation and additional capacity.
Land of Furniture
Wakefield retailer Land of Furniture used Mercia funding to support its move into larger premises.
Location:
Wakefield
Sector:
Retail
Reason:
New larger premises
GW Power
Hull-based engineering and renewables business GW Power secured a £500,000 Mercia Business Loan to support its move into larger premises.
Location:
Hull
Sector:
Engineering & renewables
Loan amount:
£500,000
Reason:
New larger premises
Geometric Manufacturing
Geometric Manufacturing secured £1 million from Mercia to invest in enhanced factory automation at its South Midlands manufacturing operation.
Location:
South Midlands
Sector:
Defence manufacturing
Loan amount:
£1million
Reason:
Enhance factory automation
Businesses making their next move
Latest news
Stories, insights and the latest from businesses we back.
Our business loans
How we can help further
If you are looking for funding that’s not between £100,000 and £2 million, don’t worry. Our investment team is able to point you in the right direction, either to another Mercia fund or external collaborative partners.
UNCOMPLICATED PROCESS
From hello to funded
Every deal is different. We don’t set artificial timelines. We’ll move as quickly as the deal, and you, allow.
1
Conversation
Today
Tell us about your business, where you’re going and what you need. We’ll quickly work out whether there’s a potential fit.
2
Indicative
1 week
We’ll set out what we believe we can offer and the likely terms, so that you know what you’re working with.
3
Diligence
2-5 weeks
We get into the detail of the business, the numbers, the plan and the information we need to understand the deal properly.
4
Approval
8 weeks
We bring everything together and take the deal through our approval process.
5
Go
Documents signed. Funds released. You make your move.
You set the pace.
Your move
Give us the right information at the right time and we’ll move as quickly as you can.
Are we right for you?
We’re direct about the fit.
Mercia Business Loans isn't for everyone and we won't pretend otherwise. Here's exactly who we lend
to, and who we point elsewhere.
You’ll likely qualify if:
- You’re an established SME with strong trading
Ideally supported by audited accounts. - You have a clear purpose for the funding
Growth and expansion, assets and equipment, or a transaction. - Your business can support the borrowing
Your plan and financials demonstrate a clear ability to meet repayments. - You have a strong management team
People who understand the business, know the numbers and can answer the hard questions.
...or we will suggest other options
- Pre-revenue or seed-stage businesses
Mercia Ventures may be a better fit. - Sole traders or unincorporated businesses
- Businesses in active distress or insolvency proceedings
- Loan requirements below £100k
We have partners who specialise.
Case Study - Assets & Equipment
Hull
GW Power
Dan Haley set up his own building services business, GW Power, after being made redundant at the age of 25. In February 2025, he secured a £500,000 loan from the Northern Powerhouse Investment Fund II (NPIF II), to support the next phase of its growth.
He now employs 46 staff in addition to on-site contractors and has a turnover exceeding £12million. Founded in 2014, the Hull-based company has expanded into renewables and energy and has recently moved to larger premises that will act as a showcase for its work.
Frequently Asked Questions
Mercia Business Loans supports growing and established SMEs across the North and Midlands with a focus on the Yorkshire and the Humber and the West Midlands with funding from £100,000 to £2million, helping ambitious management teams with their growth plans.
Frontier Development Capital is part of Mercia Asset Management PLC and deploys the Midlands Engine Investment Fund II (MEIF II) to established SME businesses, offering business loans between £100,000 and £2million.
Mercia Business Loans deploys across the North and Midlands with a focus on the Yorkshire and the Humber and the West Midlands regions via the Northern Powerhouse Investment Fund (NPIF II) and the Midlands Engine Investment Fund II (MEIF II) funds respectively.
Businesses can borrow from £100,000 to £2million.
Typically, our loans will be over a 12–60-month term. We can occasionally accommodate a short capital repayment holiday if required.
The fund is largely sector agnostic, meaning we can lend to most businesses.
The funding can be used in a variety of different ways including working capital, recruiting new teams, launching a new product or service, new larger premises, purchasing new machinery and equipment, acquisitions, and supporting share transactions such as management buyouts and management buy-ins (the latter by exception).
Don’t worry, our investment team are able to point you in the right direction, either to another Mercia fund or external collaborative partners.
An initial conversation with our investment team is the first step where you can set out your funding needs and where you want to take the business.
At Mercia Business Loans we know every business is different. Depending on the complexity of the business, your Investment Manager will outline what information is required to progress your application. Common financials which we would require include financial accounts, management accounts and budgets.
Assets & equipment FAQs
Yes. Business finance can be used to purchase machinery, production equipment, technology and other assets where the investment supports the operation or growth of the business and meets the lender’s criteria.
Business loans can support costs associated with moving to, fitting out or investing in new or larger premises, subject to the structure and purpose of the funding.
Potentially. Funding may be available for specialist or regulated equipment where the business can demonstrate a clear requirement for the asset and a sustainable ability to repay the borrowing.