Business Loans & Turnaround Finance for Businesses Under Pressure
When the bank says no, or the loans you already have are draining the business, the answer is rarely just more borrowing. K2 helps directors of viable businesses work out what finance the business can support, restructure what it already owes, and can invest alongside them as a partner.
Turnaround finance, not just a loan
A lot of small companies are paying staff, suppliers and tax out of borrowed money, and borrowing again next month to do the same. A new loan buys time, but it does not change whether the business makes money. That is why we start with the business, not the loan: is it viable at its current size and structure, what has to change, and how much debt can it carry once it has changed?
Once that is clear, the finance usually follows. In rough order, we look at the money the business does not have to borrow (HMRC Time to Pay, supplier terms, restructured loans), then finance secured on assets (asset-based lending and invoice finance), then secondary lenders, and finally equity, including our own. K2 invests its time and expertise for a minority stake or a success fee, and any cash we put in is always as a loan.
Business loans and turnaround finance by city
Each city page covers the public business finance available in that region, the area's live insolvency data and the nearest of our five offices.
London
The South East
The East of England
The South West
The West Midlands
The East Midlands
Yorkshire and the Humber
The North West
The North East
Northern Ireland
Frequently asked questions
Can a struggling business get a loan?
Yes, but rarely from a high street bank. Businesses that are losing money or have arrears usually borrow from asset-based lenders, invoice finance providers or secondary lenders, who lend against specific assets or charge more for the risk. Lenders will want a cash flow forecast and a credible plan showing how the loan is repaid.
Is K2 a lender or a broker?
Neither. K2 Business Partners is a turnaround investor. We help directors work out how much finance the business can genuinely support, prepare the case lenders need to see and introduce specialist funders. Where we become partners in a business we may lend to it ourselves, always as a loan alongside our equity stake.
What is the cheapest turnaround finance?
Usually the money you do not have to borrow: a Time to Pay arrangement with HMRC, renegotiated supplier terms, or a longer term on existing loans. After that, asset-based lending secured on debtors, stock or property is generally the cheapest new finance where the assets exist.
What if our business loans have become unaffordable?
Talk to the lender before you miss a payment, with a forecast and a proposal such as a capital holiday, a longer term or interest-only for a period. If several creditors are owed, a wider restructuring, for example a company voluntary arrangement, may be needed to deal with all of them at once.
Find out what finance your business can really support
A free, confidential conversation with a K2 partner, anywhere in the UK.
Not a lender · Not a broker · Turnaround investors since 2001