Business Loans
If you decide that your business needs additional working capital there are many business loan products available to choose from. The advantages of a business loan over an overdraft is less interest may be paid over a specified period and at a set interest rate.
This can help spread the costs of business finance when a company is struggling to pay creditors or looking to meet its growth targets.
Taking on finance to grow your business is not something that should be taken lightly. A business loan should be used in a way that will be beneficial to your business in both the short and long term.
How much do you need to borrow and why?
These are key questions you need to ask yourself before arranging a business loan. Is the loan required to generate additional working capital or for property development, new machinery or equipment? Have you prepared a business plan matched to your loan requirements?
What type of Business Loan?
There are a variety of different types of loans. Interest can be capped, fixed or variable and the actual rate of interest may vary significantly between lenders. Loan terms can vary from 1 to 10 years, usually providing that the loan term doesn’t exceed the life of the asset and there are options available such as repayment holidays.
Find what you need
Types of Business Loan
Term Loan
- Key Features:
- Borrow a lump sum of money
- Fixed or variable interest rate
- Repay in regular instalments over a set term (e.g. 1 - 5 years)
Best For:
Businesses needing capital for expansion, renovations, or large purchases.
Established businesses with predictable revenue.
Asset Finance
- Key Features:
- Loan specifically for purchasing equipment, machinery or vehicles
- Equipment often serves as collateral
- Fixed payments over equipment's useful life
Best For:
Businesses with assets who are looking to buy machinery, vehicles, or technology.
Startups or small businesses needing to upgrade without draining cash flow. Or larger established businesses looking to expand or requiring new machinery
Invoice Finance/
Factoring
- Key Features:
- Borrow against outstanding invoices
- Immediate access to cash (instead of waiting 30 - 90 days)
- Lender collects payment from your customers
Best For:
Businesses waiting on debtor payments while requiring cash flow to complete ongoing projects.
B2B companies managing long payment cycles.
Merchant Cash Advance
(MCA)
- Key Features:
- Lump sum advance repaid through a percentrage of daily credit/debit card sales
- Quick approval, minimal paperwork
- Typically higher fees compared to traditional loans
Best For:
Retailers, restaurants, or service businesses with strong card sales.
Businesses needing fast, short-term funding.
Short Term Loan
- Key Features:
- Smaller amounts, quick approval
- Repayment within 3 - 18 months
- Higher interest rates
Best For:
Covering urgent cash flow needs.
Businesses with seasonal spikes or emergency expenses.
5 Steps for Business Loans
1
Get in touch
2
Meeting to assess your needs
3
Meet lender
4
In principal offer from lender
*7 days if all correct information is received
5
Accept offer
Speak to us about your requirements
Using a Business Loan (Term Loan) to grow the team and invest in some new equipment
- A manufacturing business based in North Yorkshire
- The business supplies direct to the Public and a small amount of business to business which it was paid for on delivery
- Turnover of the business is £600k
- They required a loan for £100k, to assist them with working capital and to enable them to take on further staff and to invest in some new equipment
- We were able to assist them in sourcing the loan, by assisting the directors with the relevant projections and paperwork required to complete the loan process
- £100k loan agreed over 5 years
FAQ
What if my credit isn't great?
Each lender has different credit criteria
Are there repayment penalties?
Usually there is no penatly for paying a loan back early. Sometimes you may save on the interest.