Finance Yorkshire review: growth loans for Yorkshire businesses

Finance Yorkshire is a regional investment fund that provides loans and equity to growing small and medium-sized businesses across Yorkshire and the Humber. Its Business Loans fund offers £25,000 to £250,000 to firms with a proven idea and some commercial traction. Smart Funding Solutions is an independent broker, so we can help you judge whether a regional fund loan beats what banks and specialist lenders would offer.

01About Finance Yorkshire

Finance Yorkshire is based at Capitol Business Park in Dodworth, Barnsley. Its site explains that today's organisation brings together the legacies of two earlier regional programmes. Finance Yorkshire's JEREMIE and Extension Funds invested £113 million in more than 500 companies, and the South Yorkshire Investment Fund invested £57 million in more than 360 South Yorkshire companies.

The current fund says it will invest more than £50 million over five years. Day-to-day management of the Business Loans fund is handled by FSE Fund Managers Limited on Finance Yorkshire's behalf, so the people you deal with on a loan application will usually be from that team.

02Where Finance Yorkshire lends

Finance Yorkshire is strictly regional. Its Business Loans page asks that applicants pay business rates in the Yorkshire region or intend to relocate there. If you are in the region, our page on business loans in Yorkshire covers the wider choice of local funding.

03What Finance Yorkshire funds

Fund	What it is for	Typical size	Typical term
Business Loans	Scaling an established business: hiring, marketing, equipment, working capital	£25,000 to £250,000	Up to 5 years
Growth Fund	Transformational growth through a mix of loans and equity	Up to £1.5 million	Case by case
Seedcorn Fund	Innovative, technology-focused early-stage companies	Up to £1.5 million	Case by case

The Business Loans fund is Finance Yorkshire's main loan product. Its site lists a wide range of permitted uses:

• Sales and marketing
• Recruiting staff
• Product development
• Entering new markets, including exporting
• Buying equipment and other assets
• Working capital

This is growth finance rather than rescue money: the fund wants to see the loan helping a business get bigger.

04Who Finance Yorkshire suits (and who it may not)

Finance Yorkshire is a good fit for an established Yorkshire business with momentum: perhaps a manufacturer that has won new orders and needs extra staff, a software firm ready to expand its sales team, or a food producer adding a production line. The fund asks for a proven concept with some commercial traction and financial projections it can lend against.

It may not suit:

• Businesses outside Yorkshire and the Humber with no plans to relocate
• Pre-revenue start-ups, unless they are innovation-led and a case for the Seedcorn Fund
• Owners who need funds within days, since fund lenders assess cases in depth
• Firms needing more than £250,000 of straightforward debt without equity

05What Finance Yorkshire looks at

The application runs in three steps: an initial enquiry, a call from a fund manager, then a formal application. Based on its site and typical practice for regional funds, expect to provide:

• A business plan explaining what the money will achieve
• Financial projections showing how the loan will be repaid
• Recent accounts and management information
• Evidence of commercial traction, such as orders, contracts or customer growth
• Details of the management team and any existing borrowing

Finance Yorkshire says its pricing reflects risk, so the strength of your plan and track record directly shapes the offer. Directors' personal guarantees are common with fund loans of this kind.

06Pros and cons

Pros

• Dedicated to Yorkshire businesses, with a long regional track record
• Can lend where banks see a growth plan as too early or too risky
• Terms of up to five years keep repayments manageable
• Route to larger loan and equity funding through the Growth and Seedcorn funds

Cons

• Only available to businesses paying rates in the Yorkshire region or relocating there
• Needs a credible plan and projections, so it takes time to prepare
• Slower than online lenders
• Pricing is set by risk, so it is not always the cheapest option for strong businesses

The application runs in three steps: an initial enquiry, a call from a fund manager, then a formal application.

07Applying through a broker vs going direct

You can enquire with Finance Yorkshire directly through its Business Loans page. A broker helps when you do not yet know whether a regional fund, a bank, a government-backed loan or a specialist lender is the right home for your plan. Each has different appetite, speed and paperwork.

We search the market across 300+ lenders, help you present your plan and projections clearly and approach suitable lenders on your behalf. Smart Funding Solutions is an independent broker and is not part of Finance Yorkshire, which is one of the lenders on our panel. It is free to enquire; any broker fee is disclosed separately before you proceed. Try our instant quotes tool to compare lenders in minutes.

08Alternatives to Finance Yorkshire

• FW Capital: manages the South Yorkshire Debt Fund, a better fit if you need a larger loan from £100,000 up to £2 million.
• Finance For Enterprise: a Doncaster community lender offering Growth Guarantee Scheme loans, worth comparing if the bank has declined you.
• ThinCats: a national lender, often a better match for larger, established businesses that do not want to be tied to a region.

For a broader view of loans that do not need property security, see our guide to unsecured business loans.