Funding questions, answered

As a guide, facilities range from £100,000 to £10 million. These are indicative amounts rather than fixed limits: each proposal is assessed individually.

Typically, we request cashflow forecasts covering at least the next 12 months; financial statements and bank statements for the last three months; details of existing borrowing; supporting documents for receivables and other security; any available investor presentation and intellectual property valuations; and company, ownership and identity documents for our due diligence checks. We will explain the specific requirements for your proposed facility.

Funding can be arranged in a matter of weeks where the required information is provided promptly and due diligence is completed satisfactorily. Timing depends on the structure and complexity of the transaction.

Primary security typically consists of R&D or creative industry tax credits, grant income or high-quality contracted commercial receivables. We also consider qualifying revenue-based structures. Depending on the maturity and credit quality of the receivable, lending is typically equivalent to 65–80% of its assessed value.

We normally require additional corporate security, often including intellectual property, through fixed and floating charges. We assess its value independently on a forced-sale basis. We generally require first-ranking security and prefer to be the business’s only secured lender.

We very rarely require or accept personal guarantees, relying instead on corporate assets and receivables.

Loan terms are up to 12 months. Rates start from 2% per month. We do not charge arrangement or exit fees, although expenses are payable upfront. Your proposed facility will set out the applicable rate, expenses, security and repayment terms.

There is no fixed minimum trading history, turnover or profitability requirement. We need credible cashflow forecasts showing that your business can remain solvent for at least the next 12 months, together with a clear source of repayment.

Contact our team with a brief description of your business, the amount required, your timing and the expected source of repayment. We will discuss whether a FactorTech facility could suit your needs.

We primarily lend to UK businesses and consider other jurisdictions with comparable legal and tax credit systems.

We support innovative SMEs and scaleups, particularly businesses with valuable intellectual property. Our experience spans games, media, fintech, biotech, climate technology and other technology sectors.

Each proposal is assessed individually. We review the business’s cashflows and credit history, the background of key personnel, the expected source of repayment and the quality of the available security.