FSE Group business loan review: Rates & eligibility

Established in 2002, FSE Group provides funding to high growth businesses. It works alongside partners including the British Business Bank, Funding London and Local Enterprise Partnerships to deliver regional investment programmes.

An overview of FSE Group business loans

FSE Group provides business loans and equity investment to high growth businesses across England and Scotland that want to expand their operations. It currently offers funding in the following regions:

South East

Businesses based in Berkshire can apply for the Thames Valley Berkshire Funding Escalator that offers funding of up to £500,000. It consists of an expansion loan scheme and short-term trade loan scheme to provide companies with funding for activities that will deliver high growth and employment opportunities in the area.

Businesses based in qualifying parts of East Surrey and West Sussex can apply for the Coast to Capital Funding Escalator. This comprises an expansion loan scheme and an equity growth fund and provides funding of up to £500,000.

Businesses based in qualifying parts of Surrey and Hampshire could previously apply for the Enterprise M3 Funding Escalator, which also provided companies with funding of up to £500,000. However, this has now reached capacity.

London

Businesses located in London can apply for up to £1.5 million in funding through the Greater London Investment Fund. This is a £100 million initiative by the Mayor of London to help support high growth SMEs.

South West

FSE Group manages funds on behalf of the British Business Bank across the south west. These funds are currently the SWIF Equity Fund and SWIF Debt Finance. A brief overview of each one is below:

SWIF Equity Finance: Provides finance of up to £5 million to support new and innovative companies.
SWIF Debt Finance: Provides finance of up to £2 million to help businesses grow, hire new teams, launch products or buy new equipment.

East of England

The Regional Growth Loan Scheme is accredited with the Growth Guarantee Scheme and provides business loans of between £50,000 and £500,000 to businesses in Essex, Suffolk, Hertfordshire, Cambridgeshire and Bedfordshire.

The Cambridge and Peterborough Combined Authority Business Growth and Social Impact Investment fund, meanwhile, provides debt and equity finance of up to £500,000 to support businesses in the green tech and low carbon sectors.

Midlands (at end of investment period)

The Midlands Engine Investment Fund was a £250 million initiative to help address the SME finance gap in the Midlands. However, it has now come to the end of its investment period.

Yorkshire and Humber

The Finance Yorkshire Investment Fund consists of a business loan and microloan fund that provides companies with funding for activities that will deliver high growth and employment opportunities across Yorkshire and the Humber. Businesses can borrow up to £250,000.

Scotland

IFS Debt Finance provides funding of up to £2 million to help business grow.

In addition to the above options, FSE Group operates a business angel network. This could help your business get investment from high-net-worth individuals, who typically each invest between £10,000 and £50,000 in each company.

What is FSE Group’s typical interest rate?

The amount of interest you pay depends on several factors such as the type of funding you’ve applied for, the location and size of your business, and your business’s trading and credit history.

Businesses that have been trading for longer and have a solid credit record may qualify for better interest rates than a new business with a limited credit history.

How much can I borrow with a FSE Group business loan?

The amount you can borrow with FSE Group depends on where in the country your business is based and which scheme you qualify for. In general, you can get funding of between £25,000 and £5 million but some schemes only offer funding of up to £500,000, so you’ll need of compare options carefully.

What is the acceptance rate for a FSE Group business loan?

FSE Group doesn’t publish its acceptance rates. But in general, you’re more likely to succeed if you meet the eligibility criteria, can demonstrate how the funding will help your business grow and, in the case of business loans, can prove you can comfortably afford the repayments.

Eligibility criteria and whether you qualify

Eligibility criteria can vary significantly depending on the funding scheme you’re applying for. Different schemes are available to businesses located in different regions, so it’s crucial to read through the criteria carefully.

In some cases, your business will need to operate in a particular sector and in many cases, you will need to demonstrate your business has high growth potential. Your business may also need to meet minimum trading and turnover requirements. However, in general, FSE Group says it’s more interested in your company forecasts that past trading history.

Additional information

When considering applying for funding through FSE Group, it’s important to read the terms and conditions of your agreement carefully and consider the following:

Early repayment fees

Some business loans charge fees if you repay the loan early, so make sure you check how much this could be. It’s often a percentage of the outstanding loan amount.

How long does it take to get approved?

FSE Group says it aims to deal with all applications within 48 hours.

Estimated time to receive funds

Once you have been approved, you could receive your funds within 24 hours, but this will depend on the type of funding. In some cases, it may take longer to receive the money.

Can a loan be repaid early?

That depends on the type of loan. It’s best to check your agreement terms or contact FSE Group to find out. Just watch out for early repayment charges.

Is security required?

In most cases you won’t need to provide assets such as property as security for your loan. However, you may be asked to sign a personal guarantee that makes you personally liable for repaying the loan if your business can’t.

Keep in mind that with equity finance, you’re required to give up shares in your company in return for investment.

What documentation is required

You’ll need to supply certain documentation and information when applying for finance with FSE Group. Exact requirements depend on the type of finance, but usually include the following:

Business information

You’ll need to supply details about your business, including its name, address and registered company number. You’ll also be asked to provide the number of employees and the business’s annual turnover, as well as your business plan or pitch deck.

Business owner information

You will need to provide the personal details of all business owners, including their names, addresses and contact details.

Funding requirement

You’ll be asked to state how much funding you require, the type of funding you’re looking for, and what you plan to use the funds for.

How to apply for a FSE Group business loan

To start the application process, you must first fill in the short enquiry form online. Someone will then get back to you to discuss your requirements. You’ll be given a dedicated investment manager who will help you secure the funds you need by ensuring your proposal is the best it can be before being reviewed by independent experts.

Is the application process different to other lenders?

Unlike some lenders, you won’t be able to apply for finance directly online with FSE Group. Instead, you must make an initial enquiry before discussing your options in detail with an investment manager.

How to improve your chances of getting funded

Your investment manager will work with you to help get your funding over the line. However, you can improve your chances by ensuring you qualify for the type of funding you want to apply for before making an enquiry and completing the application form honestly and accurately.

Pros & cons of a FSE Group business loan

Be sure to weigh up the pros and cons of applying for finance with FSE Group before you proceed.

Pros

Dedicated investment manager to support you
Range of funding options available
You may be able to borrow a large lump sum
No security usually required

Cons

Access to funds depends on where your business is based
Not all regions are covered
You may have to sign a personal guarantee
It may take a few days to get approved and receive funds

Alternative funding options for different lenders

If you’re not sure whether applying for funding with FSE Group is the right option for your business, there are alternative options available from a range of lenders. These include:

Why use a finance broker?

A finance broker can simplify the process of comparing and applying for business loans. With access to a range of lenders and products, they can help pinpoint options that best match your circumstances. This can be helpful if you haven’t been trading for long and don’t have much of a credit history, or if you’ve had problems with debt in the past.

A reputable broker will explain any fees upfront and manage the application process on your behalf.

Keep in mind that some brokers charge for their services, either as a fixed fee or a percentage of the amount borrowed, so it’s important to check the costs before proceeding.

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FSE Group business loan review: Interest rates, eligibility, and the application process