Getting a Business Loan
Businesses of all sizes and in all industries need to be able to access finance. Business loans are the most common approach to obtaining this necessary cash injection and there are various types of specialist business loan available depending on your needs and circumstances.
Why businesses need loans?
Some finance needs are driven by opportunity and others by circumstances that require a rapid reaction. Examples include:
– Finance to develop a new product or service and take it to market
– Business loans to invest in new software, training systems or physical assets that support the company’s growth plan
– Finance that enables the launch of a comprehensive marketing and advertising campaign
– A business loan to cover the cost of a new e-commerce website
– A business loan to cover an unexpected tax bill
– Finance to cover the cost of hiring a specialist or new staff member for a specific project.
– Business loans to tide over the difficult period in a new business where the model is sound but cash flow will take some time.
– Finance to take a newer start-up through to a scale-up business, or to allow an SME to become a larger trading entity.
What types of business loan are available?
Loans for smaller businesses
These are available to smaller businesses with a turnover of between £120k and £500k a year.
Loans for larger businesses
There are more suited for businesses which need to borrow at least £100k.
These larger loans are available to substantial businesses with a turnover of at least £1m annually.
Instant loans for businesses
These are available to business customers who need a same day decision on their application and the funds in their account on the same or next working day.
Cheap commercial loans
Where businesses have a strong management record and solid accounts which reflect excellent financial management and a sound foundation for the business, loans with low interest rates are available. This allows those businesses to invest in their future for the lowest possible finance cost.
Fast loans for businesses
All businesses have instances where they need rapid access to cash. Fast business loans are designed to provide instant cash flow. For example, an unexpected bill may have arisen or a new opportunity to service an account or meet a customer need. In these instances, businesses need to access cash quickly but may not have the reserves that they require to meet the whole cost.
Quick Business Loans
These are similar to Fast Business loan products, but typically used for smaller injections of immediate cashflow for all of those unforeseen situations that can occur when you run a business. This type of loan is particularly popular with our smaller businesses and those which are newer and getting to grips with their annual cost planning and projections. Often, a quick injection of cash can make all the difference in building a healthy and sustainable business for the longer term.
What are the benefits of financing?
There are various benefits to taking out a specialist business loan. For example:
- Business loan products allow the business to meet its objective – whether to prevent a cost-related issue or to invest in growth and opportunity for long-term success
- Loan interest is often tax deductible as a business expense
- Business loans inject liquidity into the business – which is extremely useful during times of seasonal fluctuation or when the business is going through a period of change.
- Business loans do not give away portions of the business to an investor – as with investor finance. The business owners retain full control.
- Business loan products often have attractive interest rates and flexible repayment periods to help the business.
- Business finance products are provided by experienced lenders that can assess the client’s business and make recommendations on their financial needs according to their circumstances.
Which industries need business loans?
The answer is – they all do! Different industries of course need a loan for different reasons but some examples are:
- Cash Flow
- Working Capital
- One off Business Expense
- Finance a New Project or Contract
- Take on New Staff
- Pay a VAT or Corporation Tax Bill
- Open Anther Site or Office
- Refurbishment of Trading Premises
Find out more
Whatever your business need, the right kind of flexible finance is available to you. We’ll carry out a needs assessment based on your requirements and circumstances and advise on the loan products we can offer you. Our team are experienced, helpful, friendly- and they don’t speak in jargon!
Get in touch for a no obligation chat today and secure the business finance that you need.