Business Capital
Raise capital for any business purpose through the most appropriate funding route. Secured against property, asset-backed or unsecured. UK limited companies, LLPs and individual investors. Adverse credit directors considered alongside the security and business case.
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No upfront fees · Business enquiries only · Min. £25,000
What is Business Capital?
Business capital is the broad category of funding that enables a UK business to operate, grow, acquire, restructure or resolve a financial challenge. Unlike consumer lending, business capital is unregulated and assessed on the commercial merits of the borrowing rather than standardised affordability calculations. This means that lenders can consider each case on its individual circumstances: the purpose, the security available, the exit strategy, the trading history and the broader business context. At Archangel, we source business capital through three primary routes: secured lending against property equity, asset-backed finance against business assets, and unsecured lending assessed on trading performance. The right route depends on what the business needs, how quickly it needs it and what security or trading history it can demonstrate.
- Secured: first or second charge against UK property equity
- Asset-backed: hire purchase, finance lease, sale and leaseback against business assets
- Unsecured: assessed on trading performance and bank statement history
- Any legitimate business purpose accepted
- UK limited companies, LLPs, partnerships and individual investors
- Adverse credit directors considered across all routes
- Start-ups considered for secured and asset-backed routes
- Whole-of-market access: we compare across specialist lenders to find the best terms
How Does Business Capital Work?
Define the capital requirement
The starting point is always the purpose: what is the capital for, how much is needed and over what timeframe will it be repaid? Growth capital for a new contract has a different profile to emergency capital to resolve a tax demand. Each purpose influences which lenders are most appropriate and what terms are achievable.
Identify the most appropriate route
Secured capital against property offers the widest availability and the lowest rates, but requires property equity. Asset-backed capital requires business assets to finance or leverage. Unsecured capital is the most flexible but requires demonstrated trading performance. In some situations, a combination of routes is the most efficient solution.
Lender assessment
Each route has a different assessment focus. Secured lenders focus on the property equity and the exit strategy. Asset finance lenders focus on the asset quality and the business ability to service the payments. Unsecured lenders focus on bank statement cash flow, trading accounts and the purpose of the capital. Adverse credit is addressed at each stage rather than treated as an automatic barrier.
Terms, legal process and drawdown
Once indicative terms are agreed and a formal application submitted, the legal and valuation process completes the transaction. Unsecured facilities can draw within 24 to 72 hours. Asset finance draws within three to five working days. Secured facilities draw within two to three weeks. We manage the process from enquiry to drawdown.
How is Business Capital Secured?
The security structure depends on the funding route chosen. Secured business capital is protected by a first or second legal charge registered at HM Land Registry over UK property. Asset-backed capital is secured by a registered interest over the financed or leaseback asset. Unsecured capital carries no fixed charge but is typically supported by director personal guarantees. In all cases, the lender\'s primary recovery mechanism is clearly defined at the outset.
Exit Strategy
All lenders require a credible exit strategy before funds are released. Common exit routes include:
- Repayment from business trading cash flow over the facility term
- Revenue generated by the specific activity the capital was raised to fund
- Sale of a business asset, property or the business itself
- Refinance to a longer-term facility on more favourable terms
- Investment, sale of shares or capital injection by new or existing investors
Is Business Capital a Good Idea?
Advantages
- The right business capital enables growth that would otherwise be impossible
- Multiple routes mean there is usually a viable option regardless of credit history
- Non-bank specialist lenders assess commercial merit rather than applying rigid scoring
- Speed of access is far greater than bank lending in almost all scenarios
- Adverse credit directors are considered across all major routes
- No obligation to use the capital for a single defined purpose in most cases
Considerations
- The cost of specialist business capital is higher than bank lending
- Secured routes put the underlying property at risk if the facility is not repaid
- Director personal guarantees are standard: personal assets may be at risk in default
- Business capital does not resolve underlying trading problems: it provides time and resource
- Over-leveraging a business with capital it cannot service is a risk to consider carefully
How to Secure Business Capital
Define the purpose and amount
Be specific about what the capital is for and how much is needed. Lenders respond better to a clear, credible business purpose than to a vague request for general funds. Preparation here materially improves the terms available.
Identify available security or trading evidence
For secured capital: confirm the property, its estimated value and any existing charge. For asset-backed: identify the asset to be financed or leveraged. For unsecured: gather six to twelve months of business bank statements and the most recent set of accounts or management accounts.
Submit an enquiry with context
Provide a brief overview of the business, the capital requirement and the proposed repayment route. We assess the situation, identify the most appropriate lenders and return indicative terms typically within 24 hours. There is no cost and no obligation at enquiry stage.
How Much Can I Borrow?
The available amount is determined by the funding route and the quality of the security or trading evidence.
- Secured against residential investment property: up to 75% LTV
- Secured against commercial property: up to 65% LTV
- Asset-backed: up to 90% of new asset value; up to 80% of used asset value
- Unsecured: typically £10,000 to £500,000 based on average monthly revenue
- Minimum facility: £10,000 for unsecured; £25,000 for secured
- No upper limit on secured facilities subject to available equity
What Are the Costs?
How Quickly Can I Get a Loan?
Speed varies by route. Unsecured business capital draws in 24 to 72 hours for businesses with strong trading evidence. Asset finance draws in three to five working days. Secured facilities draw in two to three weeks. Emergency timelines apply for winding up petition scenarios.
Eligibility Criteria & How to Apply
- UK limited company, LLP, partnership, sole trader or individual investor
- Any legitimate business purpose
- Minimum loan £10,000 (unsecured); £25,000 (secured)
- Director adverse credit considered across all routes on individual merit
- Start-ups eligible for secured and asset-backed routes
- Personal guarantees typically required from all directors or principals
- Secured route: UK property with available equity above any existing charge
- Unsecured route: minimum six months trading history with demonstrable bank statement revenue
9 Example Uses of Business Capital
New contract funding
A civil engineering business wins a £3m public sector contract requiring an immediate £400,000 mobilisation cost. A combination of secured working capital against commercial premises and invoice finance on the first contract invoices provides the required capital.
Business acquisition
A management team identifies a competitor for acquisition at £1.5m. A secured facility against the acquiring company's freehold premises provides £750,000, with the balance structured as vendor finance and a shareholder loan.
Emergency working capital
A distributor's main lender withdraws its overdraft facility at three months notice. A secured working capital facility against the director's investment portfolio replaces the overdraft within two weeks, preventing a trading disruption.
Capital for growth investment
A technology business wants to hire ten engineers to deliver a new product. Revenue will follow in 12 months but the salary cost begins immediately. An unsecured working capital facility bridges the investment period.
Debt restructuring
A business carrying four separate high-cost short-term facilities consolidates into a single secured facility at a materially lower rate, reducing monthly outgoings by £12,000 and simplifying its balance sheet.
Refurbishment of business premises
A restaurant group refurbishes two sites at a total cost of £350,000. Asset finance funds the kitchen equipment; a secured working capital facility funds the building works and fit-out.
Tax obligation
A business faces a £280,000 Corporation Tax bill following a strong trading year. Rather than disrupt working capital, a secured facility against investment property settles the liability and is repaid from subsequent trading profits.
Adverse credit business owner
A business owner with a historical bankruptcy (discharged three years ago) has rebuilt a profitable business and owns a commercial unit with significant equity. A secured business capital facility is arranged on the strength of the property position and the current trading performance.
Export market development
A manufacturing business wins its first export orders from three European distributors. Trade finance and an unsecured working capital facility together fund the production run and the receivables gap while the business establishes its export cash flow cycle.
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