A capital raise allows businesses to bring new funds into operations for growth, expansion, or cash flow management. It can take the form of secured loans, unsecured loans, or equity release from existing assets.
Capital raising involves obtaining new funding, either as debt or equity. Debt is repaid with interest, while equity contributions may share ownership or returns. Many SMEs access capital through secured or unsecured business loans.
For many businesses, using a capital raise is a more cost effective option compared with taking out an unsecured business loan. When the funding is structured against existing assets, lenders treat the deal like a standard asset loan. This usually delivers better pricing and more flexible terms because the loan is secured.
Unsecured business loans sit on the opposite side of the spectrum. With no asset attached, lenders carry more risk, which pushes rates higher. If the goal is to access working capital without taking on unnecessary cost, a capital raise can often be the more efficient way to unlock funds.
Can startups complete a capital raise?
Yes, though lenders may require director guarantees or additional security.
How fast can a capital raise be approved?
Unsecured options may be approved within 1–2 business days.
A capital raise enables businesses to secure funding for growth or cash flow stability. By selecting the right loan type, preparing documentation, and engaging a broker, businesses can obtain capital efficiently and responsibly. For tailored support, speak to one of our brokers today.
