Mercia Business Loans: products, terms and eligibility

Mercia Business Loans is a UK provider of unsecured business loans. The legal entity named on its site is Mercia Business Loans Limited. It is part of Mercia Asset Management PLC.

Mercia Business Loans Limited is a subsidiary of Mercia Asset Management PLC, which its site shows is AIM-listed and registered in England and Wales. Its group also includes Mercia Fund Management, Mercia Regional Ventures and Frontier Development Capital, and it says its subsidiaries are authorised and regulated by the FCA. Mercia says it aims to be the first-choice provider of capital for businesses that typically seek up to £10 million. Its debt finance covers Yorkshire and the Humber (NPIF II) and the Midlands (via Frontier Development Capital).

In its own words on scale:

• Says it targets businesses seeking up to £10 million of capital (statement on its site in October 2026).

Everything on this page comes from what Mercia Business Loans publishes itself. We show the date we last checked it, and we do not rate or rank lenders.

Mercia Business Loans publishes 3 products for UK businesses. The table above gives the amounts and terms as it states them.

NPIF II debt finance

Debt finance of £100,000 to £2 million exclusively for businesses operating in Yorkshire and the Humber, with capacity to co-invest alongside other funds. Mercia says it is sector-agnostic and welcomes applications from underrepresented networks such as female founders. Investment can support working capital, a change of premises, product development or new markets, and decisions are made in person by an investment manager.

Midlands business loans (via Frontier Development Capital)

Debt of up to £2 million for Midlands businesses, supported by the Midlands Engine Investment Fund II and managed through Frontier Development Capital. Mercia lists recruitment, product launches, marketing, equipment and working capital as uses.

Growth capital (via Frontier Development Capital)

Mercia says Frontier Development Capital offers growth capital of up to £8m. The pages read give no further structure.

Mercia Business Loans says its finance is used for:

• Working capital
• Recruitment
• Product launches and development
• Marketing
• Equipment
• Moving premises or entering new markets

Sectors and business types it says it funds:

• Sector-agnostic (NPIF II); examples cited include cyber security, agriculture, veterinary services, pet food manufacturing and engineering

What it says it does not fund:

• Businesses outside Yorkshire and the Humber (NPIF II) or the Midlands (Midlands fund)

Mercia Business Loans publishes these criteria. Meeting them does not mean an application will be accepted: every lender makes its own decision.

• SMEs located in Yorkshire and the Humber (NPIF II fund; wider North of England possible).
• Growing businesses that can demonstrate profitability and/or strong forward cashflows.
• At least two years of historic accounts.
• Management information and a 12-month cash flow forecast.
• Any sector considered.

Mercia Business Loans describes its process like this:

1. Complete the online application form or contact the team to discuss the business plan.
2. Provide historic accounts, a cash flow forecast and management information.
3. An investment manager assesses the case in person.

Information it says it asks for:

• At least two years of historic accounts
• 12-month cash flow forecast
• Management information

Every application is subject to status and the lender’s own criteria at the time.

An unsecured business loan is a fixed sum repaid in instalments over an agreed term, without a charge over a specific asset. Most lenders still ask the directors for a personal guarantee, which makes them personally liable if the company cannot repay.

Lenders price each loan on the business’s trading history, turnover and credit profile, so the offer you receive can differ from the published range. Compare the total cost in pounds and the repayment pattern, not only the headline rate: our guide on how to compare business loan lenders shows how.

Points Mercia Business Loans publishes that are worth knowing:

• Investment decisions are made in person by an investment manager.
• Mercia Business Loans is a trading name of investment funds managed by Mercia Business Loans Limited and Frontier Development Capital Limited.
• NPIF II is supported by Nations and Regions Investment Limited, a subsidiary of British Business Bank plc.
• Security and personal guarantee requirements are not published.

Security and guarantees

The pages read do not describe security, guarantees or early repayment terms.

Mercia Business Loans’s site states: “Mercia Asset Management PLC is registered in England and Wales: 09223445. Its subsidiaries, Mercia Fund Management Limited, Mercia Regional Ventures Limited, Mercia Business Loans Limited and Frontier Development Capital Limited are authorised and regulated by the Financial Conduct Authority.”

Protections differ by borrower type and loan size. Most lending to limited companies is not regulated consumer credit, so read the agreement and ask the lender what applies to you.

Other providers of unsecured business loans with profiles here include Momenta Finance, Playter and SimplyFunded. Each profile uses that lender’s own published terms.

The full list, grouped by product type, is in our directory of UK business lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders, so you can weigh this kind of facility against the alternatives. You can check your funding options with a soft search that does not affect your credit score. A full application to a lender may involve a hard search, and any offer is subject to status and lender criteria.