Business loans in the North West: NPIF II managers, regional lenders and how to compare

The North West is home to several finance groups that lend across the UK. One example on our panel is Praetura, whose head office is in Blackburn and whose lending arms cover asset finance, commercial finance and invoice finance. Kingsway Finance, which Praetura lists as one of its group companies, is another panel lender. Being headquartered locally does not mean these lenders only fund North West businesses, and it does not mean they will automatically suit you. They are simply part of the market we compare.

For a large share of North West borrowing, the national market does the job faster than a regional fund:

• Unsecured term loans from online lenders suit amounts that need deciding in days rather than weeks, such as a stock order or a VAT bill.
• Revolving credit and overdrafts handle seasonal swings, which matter for tourism businesses in the Lakes and on the Fylde coast.
• Asset finance funds vans, plant and machinery against the equipment itself. See our asset finance guide.
• Commercial mortgages from banks and specialist lenders fund premises purchases, which regional growth funds are not set up for.

Regional funds are at their most useful when a bank has said no or offered only part of the money, or when the business is growing faster than its accounts can show.

The Greater Manchester Combined Authority has sector development plans for five frontier sectors: advanced materials and manufacturing, creative industries, digital, cyber and AI, health innovation and life sciences, and low carbon. Each borrows differently. A digital business with subscription income may be a candidate for revenue-based finance, which links repayments to sales rather than to fixed assets. A manufacturer can often unlock cash tied up in its customer invoices. A creative studio with project income may need working capital between projects more than a long-term loan.

Illustrative example only, not a quote. A Preston precision engineering company with steady profits wants £600,000 to take on a larger unit, hire six staff and buy a five-axis machining centre. The bank offers a commercial mortgage on the unit but not the rest. A sensible comparison might include:

1. Asset finance for the machining centre, secured on the machine.
2. NPIF II debt finance through FW Capital for the recruitment, fit-out and working capital, assessed on the growth plan.
3. A national unsecured or secured business loan if timing is tight and the regional assessment would take too long.

The aim is to match each part of the spend to the lender best suited to it, so that no single facility is stretched.

North West regional funds, like any lender, will want to understand the business quickly. It helps to have ready:

• your last two years of accounts and up-to-date management accounts
• six months of business bank statements
• a short plan for the money, including what it will deliver in sales, jobs or efficiency
• cash flow forecasts covering at least the first year of repayments
• details of any existing borrowing, including asset finance and director loans

Most loans to smaller companies will also need a personal guarantee from the directors.