Top Tips for a Smooth CapEx Term Loan Application

• Samantha Hinton explains the funding needs supported by a CapEx Term Loan 
• Find out how to enable a smooth application process and fast decisions

With over 400 applications approved for CapEx Term Loan since its launch, this article will provide insight into the types of funding needs the product is designed to support, and some tips on how to enable a fast, first-time decision for your cases.

Samantha Hinton, Head of Internal Sales, Digital SME at Shawbrook, addresses some frequently asked questions to help brokers understand how best to ensure a smooth application journey.

Q: Can you remind us what a CapEx Term Loan is including the key features?

A: A CapEx Term Loan is an unsecured business loan tailored for specific capital expenditure investments. It’s ideal for businesses that need quick access to funds for key growth initiatives, such as acquiring tangible or intangible critical assets, or completing refurbishments and fit-outs.

We recently increased our maximum loan size, so we can now support deals between £25k and £250k. Additionally, we have extended our maximum term to offer greater flexibility on repayments, now offering terms between 1 and 5 years.

Brokers can expect fast auto-decisions and same-day payouts so long as all required information is received by 12pm.

Q: What type of customer characteristics make for a higher likelihood of approval?

A: Customers with the following traits have a higher likelihood of approval:

• Trading for more than 5 years
• At least one guarantor is a homeowner
• Plausible CapEx rationale with appropriate due diligence and evidence
• Little to no other unsecured loans taken out in a short space of time
• No directors with failed businesses in similar sectors within the last 5 years

Q: Are there any restrictions on who can access the product?

A: There are some clear exclusions in our policy which would warrant a decline in the application process. These are:

• Sole traders or partnerships
• Businesses trading for less than 3 years
• Sectors such as retail, scaffolding, pubs, bars, or clubs
• Working capital needs

Q: Do you have any tips to enable a fast decision?

A: To enable a frictionless, first-time decision for proposals that meet our criteria, brokers should submit the following details in the first instance:

• Group structure details if more than 2 companies
• Details of bank facilities including overdraft balance, invoice discounting facility limit, and current utilisation
• Evidence of CapEx expenditure

Submitting this information up front will eliminate unnecessary back and fourth, and speed up the process of getting a decision.

Q: How can brokers submit a case? 

A: Simply log into the Broker Portal to submit an application, or if brokers are new to the product and want more information, they can reach out to their Business Development Manager or submit an enquiry below.