Business Loans

An introduction to Business Loans

A business Loan is an amount of money borrowed for a set period within an agreed repayment schedule. A business loan can provide your business with the injection of cash it needs, whether it’s to start your business, for expansion or investment, for equipment or premises or to market your business. Loans can also be a useful way to cover the day to day expenses when you are developing a product or service or simply to cover your running costs prior to your business generating enough cash.

Why choose a business loan?

Business Loans are a great way to finance more long term funding needs and they can help you grow your business quickly. Loans provide your business with the injection of cash that it needs to really turn your business ideas into reality and start turning a profit.

There are a variety of different business loans available and the cost and flexibility of these loans will vary. The repayment amount will depend on the size and duration of the loan and the rate of interest. The terms and price of loans will vary between lenders, and will reflect the risk and cost to the lender in providing the finance, so ensure that you shop around for the best deal.

Business loans are often larger than personal loans, which is one of the biggest benefits of a business loan. However these loans may require some security and an arrangement fee.

The key features of business loans are:

  • You decide the amount that your need
  • You choose the repayment term
  • Loan protection insurance is available
  • The application and approval process is usually quick and easy
  • You can spend the money on what you want

Business loans are most suited to:

  • Paying for assets like vehicles, and equipment
  • Start-up capital
  • Instances when the amount of money that you need is not going to change

The benefits of business loans

  • You can make the repayment over a number of years
  • You can use the loan for whatever you want
  • You can often choose whether the rate is fixed, variable or capped
  • You can pay interest monthly or quarterly
  • Lenders offer highly competitive rates

A business loan agreement can be a long and complex document. How a business owner agrees the terms of the loan will have a direct impact on the health of a business. Remember that almost everything will be up for negotiation. To discuss a potential case, please call us on 0800 597 4757 or