CAPEX Term Loan

What is a CapEx Term Loan?

A CapEx Term loan is a business loan designed to help you spread the cost of capital equipment investment, whether that’s physical equipment or intangible assets like software and technology.

Instead of securing the loan on the business assets like a typical asset finance loan, we’ll lend based on the company’s ability to repay the loan. This can be a useful solution where the assets purchased don’t have a resale value.

Because the loan isn’t secured on assets, we ask for a personal guarantee from individuals with 25% or more shareholding.
We’ll also ask for evidence of how the funds are used.

Key Features

We have combined the best of digital processes with human ingenuity, to be able to give you the quick lending decision you need to grow your business.

Fixed interest rate
Loans from £25k - £150k
Terms from 1 year to 5 years
£200 acceptance fee (payable together with the first loan repayment)
Fixed monthly repayments for the term of the loan
Overpayment and early repayments accepted subject to terms
Same day pay-outs*

*Once approved, if Loan Agreement and Personal Guarantee is provided by 12pm and pass our checks

Broker? We’ve got you covered

If you're a new or existing Commercial Finance Broker, head to our dedicated site where you'll find everything you need on how we can work with you to grow your business.

Visit our dedicated broker site

We can support

We can support a broad range of projects. If you are not sure whether your project qualifies, take a look at our CapEx Term Loan Fact Sheet or get in touch with our team.

They won’t be able to provide financial advice but will be able to confirm if we can lend for those assets. Some of the projects we can consider are:

Fit outs or refurbishments of
Offices, warehouses, commercial buildings

Tangible assets
Furniture, equipment and bespoke or specialist assets

Technology
IT hardware, software licenses, installation costs, training fees etc.

Intangible costs
Architecture fees, consultancy (must be associated with an asset purchase)

Sustainability
Solar panels, charging points etc.

We’re unable to support:

Physical retail stores
Pubs, bars, clubs, restaurants
Scaffolding (unless exclusively for your own use)

How it works

Who can apply?

Your business needs to:

Be a Great Britain based incorporated business
Be a Limited Company or LLP
For loans up to £100k, have 3 years trading history and the last 2 years filed accounts
For loans over £100k, have 5 years trading history and the last 4 years filed accounts
Provide a personal guarantee from all individuals with 25% or more shareholding. For loans over £75k, at least one individual must be a homeowner

What you'll need to apply

ID
Details of all individuals with 25% or more shareholding, including date of birth and home address
Details of how the funds will be spent

Personal Guarantees

We’ll ask for a personal guarantee from individuals with 25% or more shareholding. If none have at least 25% we’ll ask for a personal guarantee from all shareholders.

What is a personal guarantee?

In the context of a loan, a Guarantee is a contract under which the person providing the guarantee to the lender promises to be responsible for the debt of the borrower.

The guarantor may, therefore, become personally liable for repaying that debt if the borrower defaults under the loan (e.g. if they default on their repayments or become insolvent).

Why does Shawbrook need a personal guarantee?

The provision of guarantees to support a loan can be a useful way for business owners to access finance if there are no business assets that can be used as security for the debt.

If the business defaults under the loan and they are unable to repay us, we will be able to make a demand under the guarantee and seek repayment from the guarantors. However, if a guarantor is unable to make payment, we may seek to recover the outstanding debt through the courts. If we obtain a court judgment against the guarantor, we may then be entitled to enforce against the guarantor’s assets to seek recovery of that judgment debt (e.g. a charging order on their home).

You should get independent legal advice before you proceed it is vital you understand both the advantages and disadvantages of agreeing to provide a personal guarantee and you should be fully informed and understand the terms you are agreeing to.

You may wish to consider alternative funding options which might not require a personal guarantee and instead are secured on business assets.