Business loans for growth & expansion
Funding for established businesses ready to make their next move. Invest in people, increase capacity, launch new products, move into larger premises or enter new markets.
What the funding can be used for
- Recruitment
- Sales & marketing
- Launch a new product or service
- New or larger premises
- Expansion into new markets
How can a business loan support growth and expansion?
Growth and expansion finance gives established businesses access to capital to invest before the benefits of that investment are fully realised. A Mercia Business Loan can be used to recruit people, increase operational capacity, invest in sales and marketing, launch new products or services, move into larger premises or expand into new markets.
For businesses with a clear growth plan, debt funding can provide the capital needed to move forward while allowing existing shareholders to retain ownership of the business.
case studies
Who we've backed
See how businesses have used Mercia Business Loans funding to increase capacity, invest in premises and put their growth plans into action.
Play Padel Group
Mercia provided £1.2 million to Sheffield-based Play Padel Group to support the fit-out of new premises and provide working capital for growth.
Location:
Sheffield
Sector:
Lifestyle & leisure
Loan amount:
£1.2million
Reason:
Premises fit-out & working capital
Lazenby Group
Hull-based manufacturer Lazenby Group secured £650,000 from Mercia to support the expansion of its existing premises.
Location:
Hull
Sector:
Manufacturing
Loan amount:
£650,000
Reason:
Expansion of current premises
Fitness Worx
Fitness Worx has received £940,000 across three Mercia Business Loans to support the purchase of new premises in Rugby, Coventry and Solihull.
Location:
Rugby, Coventry & Solihull
Sector:
Lifestyle & leisure
Loan amount:
£940,000 (3 loans)
Reason:
Purchase of new premises
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 £2million, 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 - Growth & Expansion
Coventry
Fitness Worx
For Fitness Worx founder Jack Gibson, business loans have been a genuine growth enabler.
After traditional lenders said no, Jack secured funding from MEIF II and Frontier Development Capital to open its Cannon Park site.
Hear from Jack on his growth and investment journey with MEIF II and FDC.
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.
Growth & expansion FAQs
A growth business loan can be used to fund recruitment, sales and marketing, new products or services, additional capacity, new premises and expansion into new markets.
Business borrowing can be used to provide additional working capital where investment is required ahead of future revenue, subject to the purpose of the loan and lending criteria.
For some established businesses, debt finance can provide growth capital without issuing additional equity. The appropriate funding structure will depend on the circumstances of the business and its ability to service borrowing.