Short Term Loans
Short-term business loans are used to help cash flow, usually designed to bridge a gap while expected funds arrived. This type of business loan is generally repaid over a term of 1 month-2 years and will attract a higher monthly repayment as a result.
Most short-term business loans will pay out within 2 days, although it is possible to drawdown the funds the same day through some of the faster lenders. If you feel that a shorter term loan may have an adverse effect on affordability you should also consider a medium-term loan.
Medium To Long Term Loans
If you’re looking to borrow over a longer term or want to borrow more while keeping the monthly repayments low, you will need a medium to long-term business loan. Medium to long-term usually means between 2-10 years.
Medium-long term loans will usually be for £10,000 up to £1,000,000. Borrowing over a longer term will keep monthly repayments low, but will result in more interest being paid over the longer term. Our team of experienced advisors are on hand to discuss the best overall package for your business and will help you every step of the way.
Fast Business Loans
A fast business loan is exactly that, fast. There are lenders who are able to complete your application same day however you may pay a premium for this. Fast business loans can be crucial in paying an unexpected debt or funding an urgent purchase. Call us today for free, impartial advice.
We understand that you may need to borrow funds quickly, our experienced advisors are able to make immediate contact with lenders who specialise in fast business loans. When funds are needed in a hurry it is crucial you are placed with the most appropriate lender. A declined application also means a delay in funding.
No matter what the reason, if you need funds fast, our experienced advisors are able to guide you in the right direction. We will help manage your application to its fastest possible conclusion, freeing those funds that are urgently needed.
Small Business Loans
A small business loan usually means a loan amount ranging from £500 to around £10,000. If you’re a small business owner and are looking to take out finance, or even a start-up loan, our advisors are on hand to help. We offer jargon-free advice and have access to the lowest rates in the market. Loans for small businesses can be arranged quickly and easily for almost any purpose.
Take the hassle out of comparing your options by accessing the entire market with one phone call to ABC Finance Ltd.
Applying For A Business Loan
Our experienced team make the whole process straightforward. From taking your initial enquiry to the drawdown of funds, your dedicated advisor will manage the application through to a speedy conclusion. Once the application is submitted, there can still be a lot of work to do and we work with you to ensure you have the best chance of success.
Our advisors take control of the situation after finding you the best possible terms and manage the application through to completion in the quickest possible time.
How Much Can I Borrow?
Business loans are available for any amount from £500 all the way up to £1,000,000 and even more for the right application. Due-diligence regarding affordability will be undertaken to ensure any borrowing isn’t a strain on your business. To find out how much you could be eligible to borrow, talk to an advisor.
What Are Unsecured Business Loans?
An unsecured business loan is a loan that is not secured against an asset or a property. The profile of the business becomes very important when a lender is lending without security. This is because without a property or asset to fall back on, failure to keep up repayments puts the lender at a high risk of losing money.
Although assessment of your business is still required, the process tends to be quick as there is no need to wait for a surveyor to view the property or asset.
The lender will be keen to ensure the repayments are affordable. Assessments of the accounts will be very important to understand this, especially for small business loans, where the business isn’t as well established.
Although the loans are known as unsecured, the lender will look to take as much comfort from security as possible. Although there will be no charge against physical assets, the lender will most likely look to take out a debenture and/or personal guarantees. If you’re keen to avoid a certain type of security, it’s important to make this clear upfront, as different lenders will view this differently.
What Are Secured Business Loans?
Secured loans for businesses are designed for clients who have security available to reduce the lender’s risk in lending money. The advantage of reducing the lender’s risk is that you will most likely see a reduction in your interest rate.
To take out a secured business loan, you will need to have sufficient security in the form of property or assets. Even if you already have a commercial mortgage in place on your property, you may still be able to raise the money using a second charge.
Secured business loans often offer a higher maximum loan and may even allow you to borrow over a longer term. Some lenders will offer loans up to £1,000,000 on a secured basis, or even more if there is a good business reason for doing so.
When looking for secured funding, the lender will want to look at the asset in question and will also instruct a full valuation. The valuation will come at a cost, which of course, will have to be covered by you.
In addition to the valuation, which can take between 1-2 weeks to complete, the legal process also has to be considered. Waiting for the valuation, and then waiting again for consent for the second charge and legals can add significant time to the process.
What Are Peer To Peer Loans?
Despite being a relatively new product, peer to peer business loans have proved to be extremely popular. The concept is that banks are bypassed, with individuals pooling their funds together to lend to a business.
Peer to peer lending is often done through a ‘platform’. These platforms are run by companies who underwrite the loan and offer guideline rates. Investors are then offered the opportunity to commit the funds needed to fund a portion of the loan.
The loans often benefit both parties, with investors increasing their returns (albeit there is more risk involved than placing the money in instant access savings accounts). Borrowers benefit through the new peer to peer lenders entering the market, offering flexible business loans.
Which Business Loan Is Best For Me?
Good question! The vast amount scenarios to look at multiplied with the varying levels of lender criteria means that that question is almost impossible to answer without knowing more about you, your business and your chief aim.
Enquire Online Now
Don’t lose time applying to every lender. Make one simple enquiry online to ABC Finance, or call us on 01922 620008 now and we’ll do the hard work for you.
We pride ourselves on saving our clients money, so for impartial business loan advice without broker fees, enquire now and we’ll get in touch straight away.