How to Borrow More as Your UK Business Grows
George Wilks
Commercial Lead · Jan 8, 2027 · 7 min read
Growing businesses often find that the finance facilities they arranged at an earlier stage cannot keep pace with their expanding capital needs. Understanding how to systematically increase your borrowing capacity as your business grows - through improved financial metrics, additional security, and expanded lender relationships - is one of the most important skills in business finance management. This guide explains how UK businesses can access progressively more capital at each growth stage.
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How borrowing capacity grows with the business
Borrowing capacity for UK businesses is driven primarily by three factors: EBITDA (which determines how much debt can be serviced), asset values (which determine security cover), and lender relationships (which determine who is willing to lend and on what terms). All three increase as a business grows, but they do so at different rates, and understanding which is the binding constraint at each stage helps you focus your efforts.
For most growing UK businesses, EBITDA is the primary driver. As EBITDA increases from £100,000 to £500,000 to £2M, the quantum of debt that can be supported multiplies. At £100,000 EBITDA, a business might support £300,000-£400,000 of total debt. At £2M EBITDA, the same leverage multiple supports £6M-£8M of debt.
Building lender relationships for future capacity
The lender relationships you build today determine your financing options tomorrow. UK businesses that maintain open, proactive communication with their lenders - sharing management accounts, notifying of material events, and meeting reporting obligations consistently - build a trust record that lenders value when larger facilities are requested.
As your business grows, you will naturally outgrow some lenders and become attractive to others. A lender who only does deals up to £500,000 will be replaced by lenders who specialise in £1M-£5M facilities. Understanding this lender lifecycle and proactively establishing relationships with the next tier of lender before you need them smooths each transition.
"Borrowing capacity grows with your business if you manage it proactively. The businesses that access the most capital fastest are those that prepare for each growth stage before they reach it."
- George Wilks, Commercial Lead
Additional security to unlock more capacity
As a business grows, it accumulates assets that can serve as additional security. Property acquired, equipment financed, a growing debtor book, and stock all represent security that lenders can take charges over. Each asset added to the security package potentially unlocks additional lending capacity.
Understanding how your security package looks to lenders, and structuring it deliberately rather than allowing it to evolve ad hoc, gives you the maximum benefit from your asset base. A growing business that has accumulated significant assets but has never formally offered them as security may be sitting on unused borrowing capacity.
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Frequently Asked Questions
When should I approach a new lender as my business grows?
When your facility needs are approaching the upper limit of what your current lender can provide, or when your financial profile suggests you can access better terms from a different lender tier.
Can I access more finance without additional security?
Yes. EBITDA growth alone increases unsecured borrowing capacity. Improved profitability and track record often allow businesses to access more capital on unsecured terms as they mature.
How do I demonstrate to lenders that my business is growing?
Current management accounts showing revenue and EBITDA growth, bank statements showing increasing cash flows, and new customer contracts or order books all demonstrate growth trajectory to lenders.
The bottom line
Borrowing more as your business grows is a process, not an event. It requires consistent financial management, proactive lender relationships, and a clear understanding of how your credit profile evolves with growth. Spark Finance helps UK businesses at every stage assess their current borrowing capacity and build towards the next level.
Check your eligibilityAbout the author
George Wilks
Commercial Lead
George leads commercial relationships at Spark Finance, specialising in property-backed finance including bridging loans, development finance, and commercial mortgages. He works with investors, developers, and owner-occupiers to structure short and long-term property finance.
