Business Loans
Are you looking for a straightforward business loan (sometimes called a commercial loan)? We can help you find what you need without having to worry that you might not meet the criteria. Let us guide you through the process.
A commercial loan is for a fixed sum repaid over a fixed period (called the "term" of the loan).
We have specialist partners that can help you access the best interest rates, from lenders that will take a flexible approach and be sympathetic to difficult circumstances.
For help, call Sean on 03330 113622.
How Much Can You Borrow?
You may want to know how much you can borrow using a business loan. We will be able to tell you the maximum amount that you can borrow based on some simple details about your business.
Below we have set out the amounts you may be able to raise are as follows:
Unsecured Loans
- Up to £200,000.
- A guarantee from your company director(s) may be required.
Secured Loans
- Between £150,000 and £1,000,000.
- A charge over all company assets or property (typically a second or subsequent charge) may be taken.
Property loans, for property development and investment, up to £10 million.
What Is The Term Of A Commercial Loan?
This is the normal term of a commercial loan, the period over which the loan is repaid. This can range between 3 months and 10 years.
What Can The Money Be Used For?
You can use the money for almost any purpose. These are a few examples of possible uses:
- Paying tax or VAT.
- Financing management buyouts (MBO), buy-ins, acquisitions and business purchases.
- Purchasing stock or equipment.
- Improving your working capital and cash flow position.
- Expanding your business.
- Refurbishing property.
- Bridging loans for short periods.
How Do Business Loans Work?
A business loan tends to be a straightforward product that is widely understood. It works as follows:
- The lender agrees to lend you a fixed sum of money (the principal sum).
- An interest rate is set for the loan as is the term over which the loan (and the interest) and any other charges specified.
- The lender sends you the principal sum (normally transferred to your bank account).
- You then make regular repayments according to an agreed payment schedule (often called periodic payments or instalments).
- At the end of the term, your payments will have cleared both the principal sum, the interest and any charges.
Cash Flow Loans
If you already have an invoice finance facility (or are seeking one) you may be eligible for a cash flow loan to top up the amount of funding that you receive. This is a fixed sum, in addition to your normal factoring or invoice discounting funding levels, with the fixed sum repaid over a fixed period, called the term. Several of our invoice finance partners offer cash flow loans.
Other Information
Further information about loans:
- Blog post - How To Get A Business Loan
- Article - How Business Loans Compare Between Lenders
- Post - Bridging Loan Pricing Example
