Capital Engine | Process for Borrowers
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PROCESS FOR BORROWERS

Capital Engine provides term loans to UK businesses to finance growth and strategic events such as acquisitions and shareholder buyouts.

Overview
  • Borrowers can obtain loans between £500,000 and £15m at fixed competitive rates from 1-year to 10 years.
  • We can arrange both amortising and interest only loans. PIK loans (interest roll ups) may be possible
  • Funds have come from a network of alternative lenders and our own resources.
  • Typical fees and interest are 2-4% upfront and 9-12% per annum on principal. Borrowers also need to pay legal and valuation fees.
  • Fast access to funds is achievable (within 5 weeks from initial meeting).
  • All loans are secured. This can include a fixed and floating charge on the business, property, invoices, and equipment.
  • Our approach is flexible with no requirement in terms of years of operation, credit record or otherwise, so long as there is a well-understood and viable repayment plan
Due Diligence Process

Our focus is on first understanding and then articulating to lenders why it is likely that loan principal will be repaid and interest paid as it falls due. We work to understand the sources and reliability of the business’ predicted cash flows and the directors’ capacity to manage their delivery.

We also seek to understand the true realisable values of underlying security.

Placement Process
  • Engagement between Capital Engine & Borrower agreed
  • Due diligence process completed
  • Information package (including business plan and valuations) prepared by Capital Engine and Borrower then reviewed by lender
  • Lender issues term sheet
  • Legal agreements based on standard terms drawn up then signed and security taken (can be as fast as 5 days from signing of agreement).
  • Our fees are payable only on success.
  • Borrowers are responsible for any legal costs and valuation costs which may arise
Post Drawdown

Borrowers will provide quarterly updates and compliance certificates. If non-compliance is expected, we will work with the Borrower on an amendment process.