Creative Growth Finance (CGF) is a landmark fund from Creative UK, run in partnership with Triodos Bank since 2019. CGF’s mandate is to support ambitious creative sector companies with growth potential. We offer loans of £100,000 to £1 million to ambitious post-revenue companies who bring growth, innovation and new IP to the creative industries.
Creative Growth Finance Business Loan FAQs
What is the Creative Growth Finance Debt Fund?
We believe in the power of creative thinking and invest in businesses with widespread influence across sectors, film, TV, media, immersive and video games, advertising & marketing, digital & creative tech and creative software solutions, fashion, architecture, music and publishing.
Unlike traditional lenders who focus on where you have been, we are interested in where you are going, and consider your growth story when considering affordability. We are a trusted and credible source of finance with a very strong track record. We are a responsible lender and offer a fair, honest and transparent fee structure. Taking on debt allows creative businesses to grow without having to give away large parts of their business to equity funding.
What do we mean by the ‘Creative Industries?’
We mean businesses working in Film, TV, Media, Immersive and Video Games, Advertising & Marketing, Digital & Creative Tech, Creative Software Solutions, Fashion, Architecture, Music, Publishing.
What are the criteria?
To apply, companies must:
- be small and medium sized enterprises incorporated and registered in the United Kingdom
- operate within the creative sector as outlined above
- have a strong commercial proposition
- have been trading for at least two years, with identifiable revenues and customers as proof of traction
- have minimum annual revenues of £300,000
- have at least one year of accounts filed at Companies House
- pass our eligibility, due diligence and affordability test
How do I apply?
To apply, complete our quick and easy Eligibility Checker. If your business is eligible, you will be invited to book a call with our Investment Managers, who can help guide you through the rest of the application process.
How much is available?
Loans range from £100,000 to £1,000,000.
Are the loans secured through Personal Guarantee?
We may ask for partial personal guarantees in cases where we perceive a necessity for shared risk.
What are the rates of interest?
Interest rates range from 10% – 15% depending on your risk profile and the repayment term.
What are the repayment terms?
Repayment terms can be up to a maximum of 5 years, with monthly repayments.
What are the fees?
We ask every successful applicant to pay an arrangement fee of 5% of the loan value. This is charged to cover assessment, due diligence, legal, administration and monitoring costs.
What might the final deal look like?
In the same way each company within the creative sector is different, each loan agreement and deal through CGF is slightly different too. The final loan will include an agreed interest rate (assessed based on the level of risk the loan to your company poses), along with an agreed term of repayment. This is a secured loan, so we always take a first-priority debenture against the company to secure this debt against. As mentioned above, there is a standard 5% fee, invoiced to you after you have received the full loan payment. In some cases, we might also include some additional upsides or warrants within the loan terms. Again, these will be bespoke to each company, but could be structured along these lines:
Redemption Premium: Where you may be asked to pay a redemption premium when the loan is fully paid, or a specific milestone is reached, to reflect the interest rate offered and risk profile of your company.
Equity Warrant: Where you will issue us a certificate which will give us a right to subscribe for shares at a stipulated strike price and at a specific time or event.
Is match required?
Match is not required as standard. We are able to act as the sole lender. However, CGF financing can also be accessed in the context of a wider equity round, where there is clear visibility of co-investment partners and shared due diligence.
How are companies assessed and will due diligence be carried out?
A due diligence process is conducted on every investment. This will include company searches and may require personal searches on company directors.
We review each application with the following points and questions in mind:
KYC/Customer Due Diligence – We find out about each company’s trading and credit history, and carry out background checks, including press, anti-money laundering and insolvency searches
Management and Governance Review – We assess if there is a proven management team, board and/or advisors and whether suitable governance mechanisms are in place.
Commercial review – How does the business make money? Can it demonstrate a clear and robust pipeline? Who are its competitors?
Financial review – Is this a viable and profitable business? Does it have a good track record and demonstrate affordability? What is the company’s ability to meet its liabilities and how solvent is the company? Can the applicant afford to repay the debt?
Will I need to prepare anything to apply?
We will be asking you to provide the following information as part of the application process:
- 2 year monthly integrated financial forecast (Inc. profit and loss, cash flow, balance sheet forecasts and assumptions summary)
- A copy of your up-to-date company management accounts. This needs to include company performance, employment changes, cash summaries, P & L and Balance sheet position
- At least 1 year of company filed accounts at Companies House
- Where available, an IP & Asset Register
- Company Capitalisation Table
- Any other information requested on a case-by-case basis
What is the decision process?
After completing the initial Eligibility Checker, you will be directed to book a call with us and complete an Expression of Interest (EOI), where we ask what it is your looking for from the debt fund and for some top line financial information. The Investment team will review this and aim to provide an initial decision within 3-5 business days of receiving an EOI. If suitable, we will invite you to submit a full application.
Once you have submitted your application, we will undertake a due diligence review, working with internal and external experts to take a position on the suitability for investment. All final investment decisions are reviewed by an independent Credit Committee.
How long does the process take?
The typical timeline for an investment offer (a term sheet) is 6-8 weeks from submission of an Expression of Interest. This depends on the quality and timeliness of application materials supplied. We look to contract and draw down investments within 4 weeks of providing an investment offer.
