Most businesses need to borrow some extra money from time to time, whether it’s to start a business, for expansion or investment or simply to help with cash flow.
In the start up phase you may need finance to cover the day-to-day expenses when you are spending the cash that you do have on developing a new product or service, or on equipment and premises or when marketing your business.
If you are wondering if a business loan is right for you, or you are interested in hearing more about the benefits of business loans, UK banks and other lenders will be able to provide you with plenty of advice and offers. It is worth remembering to shop around, as banks are only able to offer you the products which they offer, whereas independent commercial finance brokers will be able to offer a wider range of options to suit your needs.
Before speaking to banks, brokers and lenders it is worth answering the following questions:
- How much money do you need?
- How flexible do you want the repayment terms to be?
- Would you like a fixed, variable or capped interest rate?
- Would you be willing to or are you able to have the loan secured on property?
- What will you do if the business cannot repay the loan?
The answer to these questions will help determine which finance option will be most suitable for you. You should also think about what benefits your business hopes to achieve from a loan. This will also help you determine which finance option is really the best one for you.
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
Business Loans UK Finance Options:
As well as loans, business loan UK organisations can also offer other finance options that can really deliver, the options include:
- Invoice Factoring
- Invoice Discounting
- Asset Finance
- Credit Protection
Invoice discounting releases cash tied up in your unpaid invoices, often within 24 hours of raising the invoice, therefore improving your cash flow.
One of the benefits of invoice discounting is that the more you invoice the more you can borrow.
For further information regarding business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.
- Business Loans – home
- Exploring and understanding your options
- Understanding and arranging a business loan
- Ways to find business loans
- Guide to arranging a small business loan
- Starting a business loan
- Short term business loan
- Long term business loan
- Business loans UK – finding finance that delivers
- Sourcing the right commercial business loan
- Secured business loans
- Fixed rate business loan
- Business Finance Loans
- Medium term business loans
- Getting a new business startup loan
- Do you need a business startup loan?
- An alternative to small business loans
- Finding small business loans UK
- Flexible business loan boost your working capital
- Long term business loans
- Business variable rate loan
- Business fixed rate loan
- Business loan UK
- Business IT Loans
- Business development loans
- Do you need a medium term business loan?
- Reason for a new business loan
- Bad credit business loans
- Variable rate business loan
- Business secured loans
- Short term business loans