Supporting the next stage of business growth
A growing food and drink retailer secured a £220,000 Funding Circle loan through SME Finance Hub.
The six-year unsecured business loan is helping the company build its next phase of growth.
The funding will support:
- Additional product ranges
- Website improvements
- A larger marketing budget
- Signing up more retail customers
- Stock purchases
- Working capital for expansion
The client has traded successfully since 2011.
It now generates approximately £3.8 million in annual turnover. The business continues to grow and needed a larger pot of funding to support its plans.
SME Finance Hub Director Simon Emmerson managed the application.
The result was a strong outcome for both Simon and the returning client.
An established retailer with ambitious plans
The client operates across online and wholesale food and drink retail.
Its established trading history provided a solid foundation. However, growth brings additional funding requirements.
Taking on new product ranges requires more upfront stock investment. Website improvements need development and content budgets. Marketing activity can require significant spending before new sales arrive.
Wholesale growth also brings higher working capital needs.
New retailers may expect stock availability, reliable fulfilment and a broad product range. The business therefore wanted sufficient funding to invest ahead of demand.
The directors were not looking to cover a short-term emergency.
They wanted to invest in future growth.
The £220,000 facility gave the business more flexibility to pursue those plans while supporting stock purchases and day-to-day cash flow.
A returning client with a proven relationship
This was not the client''s first application with SME Finance Hub.
The business previously worked with the team on a similar loan in 2024. That earlier experience gave the directors confidence in the specialist service provided.
The client was also returning to Funding Circle.
It had previously borrowed from the lender. This meant the application involved an existing relationship on both sides.
Returning clients can benefit from a more familiar process. The broker already understands the business background. The lender may also have previous experience with the company''s trading performance and repayment history.
However, each new application still requires a fresh assessment.
The lender reviews the current financial position, affordability and funding purpose. Previous borrowing does not guarantee approval.
In this case, the company''s long trading history, £3.8 million turnover and continued growth supported a suitable application.
The £220,000 Funding Circle loan
The final facility provided:
- Loan amount: £220,000
- Lender: Funding Circle
- Term: Six years
- Repayment period: 72 months
- Loan type: Unsecured business loan
- Security: No business assets pledged
- Personal guarantee: One personal guarantee from the company director
- Rate: Under 10% per year
- Lender fee: 5% upfront fee deducted from the loan amount
Funding Circle loans can come with fees ranging from 5% to 10%, depending on the application and agreed terms. The fee for this facility was 5%.
A 5% fee on a £220,000 loan equals £11,000. This was deducted from the loan amount rather than paid separately by the client.
That means the funds advanced after the deduction were approximately £209,000, before any other potential adjustments set out in the agreement.
The client did not need to pay the lender fee from its own bank account.
There was also no additional fee payable to SME Finance Hub.
How the funding will support expansion
The business has identified several areas for investment.
Expanding the product range
More product ranges can help an online and wholesale retailer reach new customers.
However, new stock usually needs to be purchased before sales are received. The loan gives the business a larger working capital pot for those purchases.
That can help the company respond to demand and build a wider offer.
Improving the website
For an online retailer, the website is an important sales channel.
The business plans to enhance its website and improve the customer experience. This could support easier browsing, stronger product presentation and a smoother purchasing journey.
Website investment can also help the business manage growth more effectively.
Increasing the marketing budget
Growth requires visibility.
The additional funding will provide a larger marketing budget. This can help the business promote its product ranges, reach new audiences and support customer acquisition.
Marketing spend often happens before the resulting revenue arrives. Additional working capital can help bridge that timing difference.
Signing up more retailers
The company also wants to work with more retail customers.
Wholesale expansion can create larger orders and stronger long-term relationships. It can also increase stock requirements and fulfilment costs.
The loan gives the business more capacity to support that expansion.
Supporting stock purchases
Stock is central to the company''s business model.
A larger pot of money can help the business purchase stock in line with its growth plans. It may also provide more flexibility when managing supplier payments, order volumes and product availability.
The funding purpose is therefore closely connected to revenue generation.
Why an unsecured business loan suited the client
The facility was unsecured.
The lender did not take security over business assets. This can be useful for established companies that want to access growth funding without pledging property, equipment or other assets.
An unsecured loan does not mean there are no responsibilities.
The director provided one personal guarantee as part of the agreement. A personal guarantee can make the individual responsible for repayment if the company cannot meet its obligations.
Directors should understand the risks before signing one. The terms and conditions should be reviewed carefully, including affordability, repayment commitments and any consequences of default.
The six-year term also gave the business a longer repayment period.
This can help spread repayments over 72 months. A longer term may support cash flow planning, although it can increase the total cost of borrowing.
With Funding Circle, the client also has the option to settle the loan early and save on the remaining interest. That means the six-year term provides flexibility rather than forcing the business to keep the borrowing for the full 72 months.
The right structure depends on the company''s circumstances and objectives.
Simon Emmerson''s specialist broker support
Simon Emmerson managed the application from SME Finance Hub.
His role involved understanding the client''s plans and presenting the application to a suitable lender. This included considering the company''s:
- Long trading history
- £3.8 million turnover
- Continued growth
- Previous borrowing experience
- Online and wholesale business model
- Stock funding requirements
- Website and marketing plans
- Requirement for a larger growth budget
The value of a broker is not limited to submitting an application.
A specialist broker can help identify a suitable route, explain the proposed structure and guide the client through the process.
SME Finance Hub uses a specialist lender panel to help UK businesses explore appropriate funding options. The team works with companies across different sectors, trading histories and funding requirements.
Not every lender takes the same approach.
One lender may view a business differently from another. A broker can help make the search more focused, reducing the need for business owners to approach multiple lenders separately.
A strong result for the client
This application delivered a substantial growth facility for an established and expanding business.
The £220,000 Funding Circle loan will support investment across several areas. It will help the company take on more products, improve its website, increase marketing activity and sign up more retailers.
It will also provide additional support for stock purchases.
The client already knew SME Finance Hub from its previous 2024 application. It also had an existing borrowing relationship with Funding Circle.
That combination of returning relationships and strong business fundamentals helped create a positive outcome.
For Simon Emmerson, it was another successful result for a client he had supported previously.
For the business, it provided a larger funding pot for its next stage of growth.
Could business growth funding support your plans?
SME Finance Hub helps UK limited companies explore funding from £5,000 to £500,000+.
Funding may be suitable for:
- Stock purchases
- Website development
- Marketing investment
- Wholesale expansion
- New product ranges
- Recruitment
- Equipment
- Working capital
- Business growth
You can learn more about business growth loans, unsecured business loans and stock funding.
The usual baseline criteria are:
- A UK registered limited company
- At least six months'' trading
- £10,000 or more in monthly turnover
- At least one UK resident director
Each application is assessed individually. Approval, rates, fees and repayment terms depend on the lender and the business circumstances.
SME Finance Hub provides specialist broker support from the initial enquiry through to funding. The broker is paid by lenders, so there is no upfront broker fee for the client to pay.
Any lender fee is explained before completion. Where applicable, it may be deducted from the loan amount instead of being paid separately by the business.
SME Finance Hub is the consumer-facing brand of Capital Business Loans Limited, an FCA-authorised UK business finance broker.
Speak to SME Finance Hub
If your business is planning expansion, a larger funding facility could help turn those plans into action.
Speak to the SME Finance Hub team about your requirements.
You can apply online, check your eligibility or call 01244 906505.
You can also email hello@smefinancehub.co.uk or visit www.smefinancehub.co.uk.
This client success story has been anonymised to protect client confidentiality. The case study reflects the information provided and the agreed funding structure. All finance is subject to lender approval, affordability assessment and individual circumstances. A personal guarantee carries risks and should be considered carefully before entering into an agreement.