Finance supplied by merchant banks and specialised commercial banks or venture capital companies, often to small to medium-sized firms, usually those too small to be quoted on the stock exchange. They usually provide funds to businesses with a proven track record to enable them to expand, prepare for a flotation on the stock exchange, buy out owners / partners or fund new product development. In return, they usually expect to take a minority shareholding in the business (between 15-40%) for a set period of time (between 3-7 years). They may also expect to appoint a non-executive director as part of the management team to take part in major decisions regarding the business, and provide general financial and managerial advice. Most venture capital companies are only interested in loans for £50,000 plus, and some only for £250,000 plus, as the administration costs aren’t worthwhile on smaller projects. A negotiation fee is charged for arranging the finance.