Funding is available earlier and in larger amounts than traditional bank loans, and these loans do not require personal guarantees – so if you have an innovative company that is expanding rapidly but needs investment to secure its next stage of growth, venture debt could be ideal for you.įast-growing young businesses with a limited trading history and little or no track record of profitability usually struggle to borrow money from conventional sources, even when their futures are bright. These types of loans are particularly effective for SMEs that are yet to achieve profitability but have an established business model and clear prospects for growth. Venture debt is funding aimed at high-growth scale-ups, provided by specialist lenders. Resources BOOST&Co’s guide to venture debt: what it is and how it could work for you We explain why this type of fast, flexible funding is ideal for businesses that struggle to gain funding from banks Ria HopkinsonĪt BOOST&Co, we’ve specialised in providing venture debt to UK-based SMEs since 2011, but one of the questions we’re frequently asked is “what does ‘venture debt’ mean?” It’s a form of fast, flexible funding that proved more important than ever amid the coronavirus pandemic, so here, we aim to demystify the topic, giving you all the facts in case venture debt could work for you.īOOST&Co offers venture debt in the form of term loans – but what exactly are we talking about here? So, what is venture debt?