Beechbrook capital business loan review: Key stats

Beechbrook Capital is a specialist private debt investment manager founded in 2008, with a focus on the “lower mid-market” in the UK and Europe. Its core business is providing debt financing to small and medium sized enterprises (SMEs) and lower mid-market companies.

The company operates out of offices in Birmingham, London and Manchester. This review takes a closer look at the different finance options available.

An overview of Beechbrook Capital business loans

Beechbrook Capital offers a range of financing solutions for the following:

Private equity buyouts

If you’re a private equity (PE) firm looking to acquire another company, Beechbrook Capital can help you fund the deal. This is typically done through a loan that’s repaid over a fixed term, but you can discuss your options in full with one of Beechbrook Capital’s investment experts.

Management buyouts

Beechbrook Capital can also help fund management buyouts, where an existing management team buys part or all of the business. This can be done by taking out a business loan, where you make regular repayments over a fixed term, or mezzanine finance is also available. This is a hybrid of debt and equity financing and lets you bridge the gap between the funds you’ve raised and the company’s purchase price.

Equity release

With equity release you, as the business owner, can unlock some of the value tied up in your company’s assets, such as property or equipment. This enables you to raise cash without selling the business outright. You might do this to free up working capital, fund expansion, or reduce debt. There are several ways to do this, but you’ll need to discuss your options with Beechbrook Capital.

Buy and build strategies

A buy-and-build strategy is a common approach used by PE firms and sometimes by companies themselves to accelerate growth through acquisitions rather than relying purely on organic expansion. Beechbrook Capital can help fund your plans.

Refinancings

Beechbrook Capital also helps companies optimise balance sheets with more appropriate long-term debt facilities. With this option, you may be able to secure a more favourable interest rate or better terms due to improved credit or market conditions. You might also be able to combine multiple loans into one or extend repayment terms to ease cash flow.

Growth capital

Beechbrook Capital can provide funding to profitable, mature businesses to help them expand and accelerate their growth plans, whether that’s acquiring other companies or entering new markets.

What is Beechbrook Capital’s typical interest rate?

Beechbrook Capital doesn’t advertise typical interest rates as the rate you pay will ultimately depend on which type of financing you’ve applied for, as well as factors such as your business type, trading history, credit rating and financial standing.

You’re more likely to qualify for lower rates if you have a solid credit history and a strong financial record.

How much can I borrow with an Beechbrook Capital business loan?

Depending on the type of finance you require and factors such as your company’s financial health and creditworthiness, you can typically borrow between £5 million and £20 million with Beechbrook Capital.

You’re likely to be able to borrow larger sums if you can show your company is in a strong financial position and has an excellent trading and credit history.

What is the acceptance rate for an Beechbrook Capital business loan?

Beechbrook Capital doesn’t advertise its acceptance rates. However, you are more likely to qualify if you meet the eligibility criteria, have a good credit record and can prove that your company is financially stable.

Eligibility criteria and whether you qualify

To qualify for finance from Beechbrook Capital you will need a typical EBITDA of £2 million to £10 million, and a typical enterprise value (EV) of £10 million to £150 million.

Other factors that may affect whether you qualify include your business’s credit history and financial health. However, as Beechbrook Capital is sector agnostic, it shouldn’t matter too much which specific business sector you’re in.

Additional information

When applying for finance with Beechbrook Capital, it’s important to check the small print of your agreement carefully. When doing so, think about the following:

Early repayment fees

If you decide to pay back your loan before the end of the agreed term, you may have to pay an early repayment charge. Make sure you understand how much this would be and exactly when it applies. Typically, these fees are charged as a percentage of the amount outstanding.

How long does it take to get approved?

Getting approved for finance can take anywhere from a few days to a few weeks, depending on the type of finance you’re applying for and the complexity of the situation. You’ll help speed up the process if you can provide the necessary information and documentation quickly. If you’re applying for a secured loan, keep in mind the value of your collateral will need to be assessed.

Estimated time to receive funds

Likewise, the time it takes to receive funds will also depend on the type of funding and the type of business you run. It’s likely to take longer if your application is more complicated.

Can a loan be repaid early?

It may be possible to repay your loan early, but it’s best to check the terms of your agreement. Also watch out for early repayment charges as these can be expensive.

Is security required?

Whether security is required will depend on the type of financing you require from Beechbrook Capital. However, many options, including refinancing deals and equity release, will likely be secured loans. This means if you fail to keep up with your repayments, the asset used as security could be at risk, with the lender reselling it to recover its money.

What documentation is required

You’ll need to provide the necessary documentation and information when applying for a loan with Beechbrook Capital.

Business information

Beechbrook Capital doesn’t state exactly what information you’ll need to provide. However, common requirements include details about your business, including its registered company number, business name and company address.

You may also need to provide a business plan, as well as certain financial documents such as your bank statements, cash flow forecasts and balance sheets.

Business owner information

You must usually provide full details of all business owners, including their names, addresses and contact details.

Funding requirement

You will likely be asked how much you wish to borrow and the purpose of your loan.

How to apply for an Beechbrook Capital business loan

You won’t be able to apply for a loan with Beechbrook Capital directly through the website. Instead, you will need to fill in the online contact form or email info@beechbrookcapital.com so that your requirements can be discussed in full.

Is the application process different to other lenders?

High street lenders often let you complete the business loan application process through their website. However, with Beechbrook Capital, you can only make an initial enquiry online before discussing your requirements in full with one of its team of experts. The advantage of this is that funding can be tailored towards your business needs.

How to improve your chances of getting funded

You’re more likely to get accepted for funding if you meet the eligibility requirements and fill in the application form accurately. You also have a better chance of getting funding if you provide the relevant documentation quickly and can show that your business is in a strong financial position.

Pros & cons of an Beechbrook Capital business loan

Pros

Supports SMEs and lower mid-market companies with debt financing
Sector agnostic, so you don’t need to be in a particular sector to qualify
Offers bespoke services to help you find the right funding option

Cons

Fees may apply
Can’t apply directly online
If you apply for secured financing, your assets could be at risk

Alternative funding options for different lenders

If the funding options available from Beechbrook Capital aren’t right for your company, you can explore a range of alternative options from other lenders. These include:

Why use a finance broker?

A finance broker can simplify the process of finding and applying for business loans. With access to a broad network of lenders and loan products, they can help you target the lenders most likely to approve your application. This support is particularly valuable if your business is new, has a limited credit history, or has previously faced financial difficulties.

A competent broker will also clarify any fees and manage the application process for you. Keep in mind, however, that some brokers charge for their service – either a flat fee or a percentage of the loan – so it’s important to confirm costs upfront.

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Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Beechbrook Capital business loan review: Interest rates, eligibility, and the application process