Frequently Asked Questions
Is A Business Loan The Best Option For My Business?
The most suitable product for your business will depend on a number of factors. During your initial conversation with one of our advisers, they will ask a number of questions and direct you toward the most suitable option.
The key factors in deciding which product is the most suitable for your business will include:
- The type of business
- How quickly the funds are needed
- How payment is received (including how long it takes to get paid)
- The asset base of the business
- The purpose of the funds
- The cash flow position (currently and the projected future position)
- Whether the building is owned or rented
What Other Sources Of SME Funding Are There?
The SME funding market is growing and lenders are starting to innovate, in an attempt to better serve borrowers. Small businesses should consider the following products, as well as business loans:
- Invoice finance
- Bridging loans
- Asset finance
- Revolving credit facilities
- Merchant cash advances
- Commercial mortgages
- Second charge loans
How Much Can You Borrow With A Small Business Loan?
Business loans are usually available for any amount between £500-£500,000. The amount you can borrow will depend on your business, yourself and whether the proposed repayments would be affordable.
Larger loans are available and will be considered on merit for established, profitable businesses, often without additional security.
Is A Personal Guarantee Always Required?
Personal guarantees (PG) are needed for almost every loan to a Ltd company or LLP. The lender will usually insist on a PG as a tool to protect themselves in the event of the business failing to keep up repayments.
A personal guarantee is an agreement to repay the loan in the event of the business failing to keep up repayments. Before signing a personal guarantee, you should consider the benefits and drawbacks of doing so.
What Can A Business Loan Be Used For?
Business loans can be used for almost any purpose, with common uses including:
- Providing a cash injection to the business
- Purchasing stock
- Buying equipment
- Providing money for marketing purposes
- Funding an expensive period caused by taking on a new contract
- Refinancing existing debt
- Expanding the business
No matter what your reason for taking out a business loan, the lender will make a common-sense judgement on the application. If the loan meets the lender’s criteria and the logic in taking it out makes sense, then your application should be accepted.
Will My Business Loan Be Approved?
There are a number of factors that need to be considered before answering this question. We would need to know the reason for the loan, the financial position of the business, current cash flow as well as other criteria before giving you an indication. This can usually be covered during the initial call with an adviser.
Once you’ve spoken with an adviser, they will usually be able to secure an initial acceptance from a lender quickly. We can often issue written terms within two hours of your initial enquiry.
Do You Have Any Geographical Restrictions On Lending?
We lend throughout the UK, with no geographical restrictions towards certain regions. We do not currently offer business loans to companies outside the UK.
Do You Charge Applications Fees?
We never charge upfront application fees for submitting a business loan application for a client. In addition, we do not charge any other broker fees on completion, meaning there are no fees to pay for using our service.