Compare Business Loans
There are many business funding options available. While it can be difficult to find the perfect deal, comparing the market and examining different options to find a competitive loan is necessary to help you find a business loan that suits your individual business needs.
We have a specialist business loan advisory team, who can help you calculate the business loan terms that you can comfortably afford.
What is a Business Loan?
Business loans are tailored specifically towards business use so while they are very similar to personal loans in their structure, you should find them much more suited to your business needs. They can be both secured and unsecured but typically they are not secured against any of your assets. These loans involve you borrowing a certain amount of money at a fixed or variable interest rate are normally repaid with monthly payments over the term. Depending on the size of your business, you can borrow both small and large amounts that can be repaid over shorter and longer time periods.
What Types of Business Loan are there?
Unsecured Business Loan – This type of loan does not use any of your assets as security and therefore, there isn’t the danger of losing your home, business or car if you cannot make repayments, the lender would find it very difficult to take possession of these. However, because the loan is not secured, you may find that your borrowing will be limited as bigger loans will often require some form of security. The limit is usually up to £25,000. To gain your loan, yours and your business’s credit history will be taken in to account and the amount you can borrow and the interest rate will be set accordingly.
Secured Business Loan – A secured business loan will use your assets as a guarantee for your loan. If you cannot make repayments then these items could be at risk. Due to this security you will be more likely to be able to borrow a much higher amount.
Peer-to-peer – This is a relatively new form of borrowing which involves borrowing from other people rather than banks on a controlled peer-to-peer platform. You will need a good credit history and will have to meet the requirements of the platform you’re interested in as they do vary. A business plan will be necessary. It’s becoming a popular way to borrow due to higher acceptance rates and good rates of interest.
How can I get a Business Loan?
By finding a provider to suit you. Compare the market using our tables for more options.
You can normally apply online for a business loan but will need to have a business plan in place. They will assess you based on your credit history and that of your company.
Advantages of a Business Loan
A business loan provides you with the flexibility to get started with your business before being financially ready. They can also allow businesses who need to expand or buy new equipment, the opportunity to do so.
Many business loans come with a fixed rate of interest meaning you can plan your monthly payments accurately and budget effectively.
Some business loans offer a repayment holiday meaning you can get started on your business plan without having to worry about paying anything during the holiday period.