eCapital raises UK funding limit to GBP £10 million

eCapital has increased its funding capacity in the UK to £10 million for new and existing clients.

The move extends the lender's reach into larger mid-market deals above its previous range. The expanded limit is available immediately and targets businesses seeking growth capital at a time when many UK companies still struggle to secure finance through mainstream channels.

Company-cited data shows fewer than half of SME loan applications currently succeed, while confidence in obtaining finance from traditional lenders has weakened. That has widened the gap for businesses that need funding to invest, expand or refinance as they outgrow smaller facilities.

eCapital said the change broadens its addressable market rather than changes its core focus. Sixty per cent of its clients currently hold facilities of up to £500,000, and it will continue to concentrate on small and medium-sized companies even as it takes on larger transactions.

The lender provides invoice finance, asset-based lending and working capital products to businesses across the UK. It has more than 20 years of experience in the British market and operates from five regional offices across England, Scotland and Wales.

Broader reach

For mid-market companies, the higher ceiling is intended to provide an alternative for firms that have outgrown their existing provider but do not fit easily within major banks' lending processes. It should allow eCapital to support larger ambitions while keeping the same operating model it uses across its established client base.

The expansion also forms part of a wider growth plan for its UK business. Recent changes include the appointment of John Nelson as Managing Director, UK, and Camillia Woodrow as Head of HR as the company builds out its leadership team.

Nelson said the business had reached a point where it could no longer turn away larger clients seeking funding.

"We can no longer deny the opportunity for larger clients to work with us and enjoy our market-leading service. This isn't about becoming a different kind of funder - it's about doing what we already do well and reaching a little further. Our commitment to the smaller and mid-sized businesses that make up the majority of our client base is unchanged. What's changing is that we're now able to say yes to bigger ambitions too, and support them with the same speed, flexibility and service our clients have always relied on," he said.

UK lending gap

The announcement reflects continued strain in the UK funding market for small and medium-sized businesses. Borrowers have faced tighter credit conditions, and non-bank lenders have sought to fill gaps for companies with working capital needs, seasonal cash flow pressures or acquisition plans.

Invoice finance and asset-based lending have become more prominent in that environment because they allow businesses to borrow against receivables and other assets rather than rely solely on unsecured lending. For firms with growing order books but uneven cash conversion cycles, those structures can provide access to capital that may not be available through conventional bank loans.

Mid-market businesses often face a particular challenge as their funding needs increase. Companies requiring several million pounds may find themselves too large for some specialist providers yet still unable to meet the criteria or process requirements of high street lenders.

eCapital's revised ceiling positions it more directly in that segment while maintaining a client mix weighted toward smaller facilities. Its operating model is based on regional relationship managers with sector expertise in industries including food and beverage, recruitment, HR, transport and manufacturing.

Its UK business is part of eCapital Corp, which also serves customers in the United States and Canada. In Britain, the company focuses on receivables finance, asset-backed funding and other working capital arrangements for owner-managed and mid-sized companies.

The increase to £10 million signals a push to capture a larger share of a market where businesses are seeking more varied sources of capital as bank lending remains difficult to secure. Sixty per cent of the company's client base still holds facilities of up to £500,000.