How to Secure a Loan that Fits Your Business Needs

04/05/2022 07:15 By #Marketing

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.


What is a business loan and how does it work?

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)


Some lenders will charge you an early repayment fee if you pay off your loan before the end of it, so always be sure to read the terms and conditions of your loan.

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


What does it take to get a business loan?

Applications for business loans are made easier with the variety of lenders on the market today along with improvements to technology. If you have a need for more capital, alternative lenders are an option. Government loan schemes are also available.

How eligible and what criteria do I need to meet to take out a business loan?

Because there are so many different business lending options on the market, you will likely have to fill out some paperwork if you’re hoping to obtain a loan. The type of paperwork you have to fill out will depend upon the exact loan provider you’re working with, but there are a few standard items that may need to be sent in.

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)

When you submit a business loan application to a lender, there are no hard-and-fast rules that they must follow. However, most businesses get approved because their businesses meet certain basic criteria that most lenders consider when reviewing loan applications.

Here are a few rules of thumb to bear in mind before you apply for a loan:

·  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.


A lender might accept commercial property, plant and machinery, vehicles, and stock as security for a secured business loan. To get this type of loan you must provide assets that the lender will be willing to accept.

Traditionally, guarantors need to be UK homeowners and demonstrate that they have a good personal net worth.


Business Loan Types

·  Business loans are a broad category referring to several types of loans.

·  Secured loans

·  Unsecured loans

·  Revolving credit facilities

·  Merchant cash advances

·  Structured debt

Whether you are an experienced business owner who wants to grow, or a small business start-up with great potential, it is important to get the funding your business needs to succeed. Getting the right business loan can help your business succeed. It gives you the opportunity to invest in your business and achieve your goals. You can use a loan to expand into new markets, open a second store or purchase additional equipment.

Our goal is to provide you, our customer with the best funding options to fulfil your business funding needs:


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.