Burnley have taken out a £12.5m loan amid concerns over the club's financial stability in recent weeks, according to a report.

The news comes after the club's accounts to 30 June 2021 were published in recent days, which revealed the significance of the club's leveraged buyout by ALK Capital in December 2020.

Following the release of those accounts, it has been reported that Burnley will have to pay a significant proportion of a £65m loan taken out to fund the takeover of the club, should they be relegated from the Premier League before 2026.

Many involved with the Clarets have become concerned as a result, although chairman Alan Pace insists that the controversial method of buying the Premier League side is sustainable, and does not threaten the club's financial stability.

However, LancsLive are reporting that a new £12.5m loan has been taken out by the Lancashire side in order to help with cash flow.

The loan is in relation to the sale of Chris Wood to Newcastle United in January, with the striker moving to the North East for £25m after the Magpies triggered a release clause in the striker's contract.

Eddie Howe's side were not due to pay the second instalment of £12.5m until February 2023 according to the report, so Burnley have instead borrowed that money up front from Australian firm Macquarie Bank.

Interest will be repaid on the loan, and although it aid's Burnley's immediate finances ahead of the summer transfer window, the borrowing adds further concern to the club's long-term financial model.