Business loans in Yorkshire and the Humber: regional funds and lenders compared

Barnsley-based Finance Yorkshire lends only to businesses in Yorkshire and the Humber, or those relocating there. Its own site lists:

• Business loans of £25,000 to £250,000 over terms of up to five years, for SMEs paying business rates in the region.
• A Growth Fund offering loans and equity of up to £1.5 million for capital spending, productivity projects, new products and new markets.
• A Seedcorn Fund of up to £1.5 million for new or pre-revenue technology and knowledge-based companies.

Finance Yorkshire is one of the lenders on our panel, and its business loan is often a good fit for established firms whose bank has offered less than they need.

In March 2025 the South Yorkshire Pensions Authority launched two £20 million funds for businesses in Barnsley, Doncaster, Rotherham and Sheffield. The South Yorkshire Debt Fund is managed by FW Capital and lends £100,000 to £2 million over one to five years. FW Capital lists uses including acquisitions, buying or upgrading property, equipment, working capital, recruitment and net zero projects. A sister equity fund is run by Foresight Group.

Finance For Enterprise is based in Doncaster and began life in 1985 as Donbac, one of the first enterprise agencies in the area. It offers loans of £25,001 to £250,000 for extra capital, cash flow support where bank finance is not available, and gap funding for growth projects, including Enterprise Loans, Community ENABLE Funding and loans under the Growth Guarantee Scheme. Its focus is South Yorkshire, although it has funded businesses further afield. It is one of the lenders on our panel.

Regional funds are only part of the picture. Most Yorkshire businesses still borrow from national lenders, and for many needs they are the faster route:

• High street and challenger banks handle term loans, overdrafts and commercial mortgages, often with Growth Guarantee Scheme support where security is light.
• Online lenders can make decisions on unsecured loans quickly, which suits urgent stock purchases or tax bills.
• Invoice finance providers are widely used by the region's manufacturers, engineering firms and distributors, who often wait 60 days or more to be paid. Our invoice finance guide explains the options.
• Asset finance lenders fund machinery, vehicles and plant, keeping regional loan money free for growth spending.

In October 2025 the West Yorkshire Combined Authority launched an economic plan targeting six sectors where it says the area has particular strengths: advanced manufacturing, financial and professional services, healthtech, digital and technology, creative industries and the green economy. Lenders that know these sectors well can be easier to deal with. A machinery-heavy business may suit specialist manufacturing finance, while a software or creative company with recurring revenue may look at growth or revenue-based lending.

Illustrative example only, not a quote. A Wakefield food distributor with four years of accounts wants £180,000: £120,000 for a second chilled warehouse unit fit-out and £60,000 for extra working capital. Its bank offers £80,000. Options we might compare:

1. NPIF II debt finance through Mercia for the full amount, with a fuller assessment of the growth plan.
2. A Finance Yorkshire business loan for part of the gap, alongside the bank's offer.
3. Asset finance for the refrigeration equipment, plus a smaller working capital loan or invoice finance facility.

The right answer depends on timing, security and how much paperwork the owners are prepared to provide. Splitting the need across products is often cheaper overall and keeps future borrowing capacity open.

• Your trading address: regional funds will check it is inside their area.
• Recent accounts, management figures and business bank statements.
• A clear plan for the money, with forecasts showing how repayments are covered.
• Director credit history and, for most smaller company loans, a personal guarantee.
• For growth funds, the jobs or productivity gains the funding will create.