Building A Business Takes Money.
Building A Business Takes Money.
Banks, credit unions and other financial institutions offer a variety of business loans and financing options to help you expand your company. If you are looking for a loan or line of credit, but don't know where to start the process, then it's time to learn more about what is available. Understanding the different types of business loans can help you determine which ones are best for your situation.
Business loans are provided by creditors/ banks and repaid by borrowers, with interest over a set period.
An example of creditors or banks are:
· Traditional banks like Barclays, HSBC, Lloyds, Metro Bank and
· Alternative challenger lenders like Funding Circle, Iwoka, Fleximize, and the like)
You can get an unsecured business loan, which means you won't have to put up your house/car/or other assets as collateral.
Business credit cards and bridging loans are also good options
1) Filled and unabbreviated full trading accounts (latest 2-year period)
2) Profit and Loss forecast where applicable
3) Bank statements (at latest last least 6 months)
4) Merchant Card Provider statements (where applicable at latest last least 6 - 12 months)
5) Existing loan/ credit information
6) Trading history
7) Payment history (e.g., CCJs, late payments)
· The loan amount is less than 25% of your annual turnover
· Your business is profitable - positive net profit and growing trend
· At least 1 year filled accounts (for most products)
· No outstanding CCJs or late payments (for most products - merchant cash advance may be an exception)
· Your business is based in the UK
Lenders typically won’t lend more than 20% of your annual turnover, and they’ll need to see enough revenue to show that you can afford it. If you’re not making much profit or making a loss, it can be difficult to get a loan, especially if you have little trading experience (less than 2 years).
Although it might seem like there aren’t any lenders left, we will be happy to show you that there still are many that can give you what you need.
Traditionally, guarantors need to be UK homeowners and demonstrate that they have a good personal net worth.
· Business loans are a broad category referring to several types of loans.
· Secured loans
· Unsecured loans
· Revolving credit facilities
· Merchant cash advances
· Structured debt
Are you looking to expand your business? Your business needs more capital, don't you agree? There are a lot of small business loans available to help you do that. Click here to apply now.