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Banks are the obvious place to start looking for a business loan, and banks will loan money to businesses on the basis of an adequate return for their investment, this will also reflect the risks of defaulting and administrative costs.

If you have already established a relationship with your bank, they should have a good understanding of your business which will help them advise you on the best options available for your financial needs.

Call in the professionals

Due to the range of finance options available, working out what is best for your business and its current needs can be confusing and daunting. So it may well be worth getting some advice from an independent commercial finance professional, who will be able to advise you on the most suitable finance options and introduce you to the right lenders. They may also be able to suggest solutions that you were unfamiliar with, that could be perfect for your situation.

How to find the best deal

Finding the best deal doesn’t necessarily mean finding a loan with the lowest rates, you should also consider the service the provider is offering and the other clauses on the loan such as other charges, fees and penalties, such as for faster repayment of the loan.

The rates and amounts for business loans differ depending on several factors such as whether you have:

  • A clear and rational business plan, which shows projected and realistic cash flow
  • Personal and business assets which can be offered as collateral
  • A good credit rating
  • A profitable business and you can demonstrate your trading history
  • Invested a stake in your own business
  • Fully understood your market

Consider all your options

Before you commit to a business loan, it may be worth reviewing the other finance options available to you, which include:

  • Factoring
  • Invoice Discounting
  • Asset Finance
  • Commercial Mortgage
  • Business over draft
  • Credit protection

Whilst a loan may seem like the right solution for your business needs, alternative finance options such as Invoice Discounting or Factoring may offer more benefits than a loan, so check out all the options available and the benefits and disadvantages of each before you make you decision.

For further information about business loans please contact our advice team on 0800 597 4757 or apply online using the form opposite.