Supporting business growth

Loans ranging from £150k up to £1m

Whether you want to expand your premises, restructure your management team, fund an MBO or are just ready to ‘cash-out’, Mercia can help you.

We’re open to new applications from ambitious SMEs seeking flexible business loans.Paul Taberner, MD – Mercia Debt Funds

We make complex transactions straightfoward

Our debt team, led by Paul Taberner, has a wealth of knowledge and experience with regional SMEs and are always available to share their expertise and guidance throughout the whole experience, making sure SMEs can take full advantage of the funding they need to grow.

Mercia invests debt finance into ambitious small and medium-sized companies. Our expertise is broad, crossing a range of business activities from complex cutting-edge manufacturing to more traditional service businesses.

What can the funds be used for?

  • Acquisitions
  • Help with working capital
  • Management Buy Outs
  • To fund restructures
  • Asset purchases

What criteria should my business meet?

  • Ambitious management team
  • Three years trading
  • Turnover of at least £500k
  • Profitable

Flexible loans tailored to the specific requirements of each business

Personal touch
Technology might streamline the process, but we like the personal touch so we’re always available for a coffee and chat

Sustained relationships
We will always offer you our best rate based on your business circumstances. We appreciate long-term relationships.

Track record
We have a history of helping ambitious entrepreneurs who want to grow their business.

Loans are on a fixed interest basis, we are happy to be subordinated to a principal lender.

Andy Heaton, Investment Manager, Mercia

How we support business growth

View our handy downloadable guide to our SME loans that gives you all the detail you need on our loans, what they can be used for, what we look for and what we can offer.

Mercia has a history of helping companies grow and we are proud to be associated with the great organisations in our portfolio, so you’ll find some of our latest case studies in this guide too.

Views from a debt advisor

Richard Mason - Ludgate Finance

What sort of clients do you represent?

“We represent SME clients.  We have a highly specialised approach focused on debt advisory.  Our average client size is up £10 million turnover and Ludgate has been in existence since 2007.   I was a former banker myself and started at NatWest in 1988 and I’ve also worked at HSBC and ABN Amro.”

How long have you worked with Mercia and your investment contact?

“We first spoke with Andy Heaton in 2019 as he’d been recommended by someone we know and trust as a potential funder. We then met Andy shortly after that. It was quickly clear to me that there was something different about the Mercia offering and we liked that. We currently have three deals in discussion, and we completed our first deal in March 2020 just before Lockdown hit.”

Describe Mercia an investment partner?

“The deal we took to Mercia was a fairly complicated MBO and it actually took quite a bit of work getting it across the line. We managed to complete the transaction, a £425k loan, in 20 weeks which, given, the complexity of the deal was a good result.

Most other lenders would have just looked at it and turned it away, but Andy and the Mercia team knew that whilst the company structure might be complicated, there was a great business there which would thrive from the SME Loans fund.

The approach to the transaction was good; we had an onsite meeting in January and the deal came together well from there. In fact, it was because Andy was able to think around the deal, not just be formulaic, that the transaction was successful.

As debt advisors, what we look for in a funder is that they are prepared to work with the lender, a willingness to think outside the box, and Mercia did just that.

I should also add that Mercia rejected a deal which we have introduced and whilst that’s disappointing it certainly hasn’t damaged our relationship with the team. We know that Andy considered the deal carefully and provided clear communication throughout. Perhaps most importantly too, he gave us an early ‘no’ – they didn’t drag the process out and we appreciated the way that they handled it. This is important in a relationship – you need clear and responsive communication and Mercia does this well.

There is a skill and an art in lending. Too many lenders these days lend based on algorithms, but it’s all about relationships and a willingness to think outside the box – in my view this is something Mercia is great at and we’ll continue referring deals to them.”