Why Shawbrook?
We provide Corporate Leverage Finance facilities designed to support owner managed and sponsor backed mid-market businesses across the UK. Our tailored debt solutions can support a variety of needs, including acquisition finance, strategic growth capital, or ownership transitions and our flexible structures meet the unique needs of each business:
What is Corporate Leverage Finance?
Corporate Leverage Finance can refer to a type of commercial loan that is provided based on a multiple of a company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation). This means that the loan amount is determined by multiplying the company's EBITDA by a certain factor, which reflects the company's ability to generate earnings and repay the loan. Also known as leveraged finance in the industry, this facility is one way for businesses to obtain funding for growth, acquisitions, or other corporate purposes by leveraging their future earnings potential.
Security may be required. Any property or asset used as security may be at risk if you do not repay any debt secured on it. Our leveraged finance is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.
Understanding Financial Leverage
Financial leverage refers to the use of borrowed capital to fund a company's operations and growth. Essentially, financial leverage allows a company to amplify its returns by using debt to increase its investment capacity.
Why is Financial Leverage important?
Financial leverage could be important because it allows businesses to amplify their potential returns by utilising borrowed capital to expedite strategic goals. By leveraging their earnings, companies can undertake larger projects, expand operations, and pursue growth opportunities that would otherwise be out of reach with their own resources alone. This strategic use of debt can enhance shareholder value and improve the company's competitive position in the market. Leverage loans offer businesses access to a larger quantum of debt, however the cost of repaying these loans can add significant overheads to a balance sheet so careful structuring is critical.
What can Corporate Leverage Finance be used for?
Corporate Leverage Finance can be used for a range of business purposes, including:
Mergers & Acquisitions
Corporate Leverage Finance is often used to fund mergers and acquisitions (M&A) in the form of acquisition finance. This type of financing allows companies to acquire part or all of other businesses, or their assets, by using debt to cover a significant portion of the purchase price. This enables the acquiring company to expand its market share, enter new markets, or acquire new technologies without having to use all of its own cash reserves.
Management Buyouts
Corporate Leverage Finance can also be used to facilitate management buyouts (MBOs). In an MBO, the existing management team of a company acquires the business from its current owners using a combination of debt and equity. This allows the management team to take control of the company and potentially benefit from its future growth and success
Debt Refinancing
Companies may use corporate leverage finance to refinance existing debt. This can involve taking out new loans at more favourable terms to pay off older, more expensive debt. Refinancing can help companies reduce their interest expenses, extend the maturity of their debt, and improve their overall financial stability or capital stack.
Working with your business
Working capital
Maintaining sufficient financial headroom is critical in ensuring that your business is resilient and capable of dealing with whatever the future might hold. We provide a range of solutions to help you manage your working capital, using either your assets or cashflow as security.
Event financing
Acquisitions, management buy-outs, employee ownership transitions, re-structuring, investing for growth. These are pivotal events for any business, and almost always dependent on access to funding.
Assets & equipment
Funding to support investments in assets and equipment. Whether it’s leasing or purchasing capital equipment or machinery, or funding significant investment in soft assets or intangible costs associated to CapEx.
Outstanding in your field
We work with most sectors across the UK. Here’s a spotlight on some of the sectors we work with.
Corporate Leverage Finance case studies
Find out more about the businesses we have supported with Corporate Leverage Finance.
Software business acquirer secures Corporate Leverage Finance loan for M&A growth
Shawbrook provided a commercial loan and committed acquisition facility for Software Circle to simplify its capital structure for further M&A activity
Kendra Energy Solutions introduces Employee Ownership scheme, with funding from Shawbrook
Leading provider of energy management systems, Kendra Energy Solutions transitions to an Employee Ownership Trust (EOT), with Leverage Finance from Shawbrook.
GRC International Group acquired by Bloom Equity Partners in deal backed by Shawbrook
Regulatory and compliance service provider, GRC International was acquired by private equity house Bloom Equity Partners, in deal backed by Shawbrook.
Adviser or Business Introducer?
We work with a range of corporate debt advisers, accountants, lawyers, and other knowledge based introducers to find solutions for their clients.
If your business is introducing clients to the right partners and we haven't spoken before, we understand that a conversation is just the start.
Explore our Business Lending Products
Asset Based Lending
For businesses with substantial value tied-up in the balance sheet, our Asset Based Lending proposition can unlock that value to provide both strategic capital and on-going financial headroom to support pivotal events.
Unsecured Business Loans
Finance for specialist needs including Professions Finance to support tax, VAT and membership fees, and CapEx Term Loans to support the acquisition of assets or intangible costs associated with capital expenditure purchases.
Supporting the businesses you support
Explore our funding solutions for Private Equity investors supporting UK mid-market SMEs.
Useful information
Useful links to more information in case you’ve not quite found what you’re looking for.
Help with our products
If you're an existing customer or you've got questions on how our products work, visit our help centre for support.
Business insights hub
We break down the latest data, insights and topics to help SMEs understand the key issues affecting their business.
News & case studies
Read our latest news and find out more about the businesses we have supported.
Our business
About Shawbrook
Shawbrook provides finance to a wide range of customers who value the premium experience, flexibility and certainty we deliver. We are a purpose-led organisation, with a focus on delivering long-term sustainable value for all our stakeholders.
Sustainability
Our sustainability strategy is designed to create value for our customers, colleagues, communities, suppliers and shareholders, while having a positive impact on society and the wider environment.
Sponsorship Programme
As official banking partner of Saracens Rugby Club and lead partner of London Mavericks netball, we are proud to champion inclusive elite sport and the opportunities it can bring for all participants, both on & off the field & court.