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Unsecured Small Business Loans

April 17, 2019  | Uncategorized
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At the moment it can be extremely difficult for small businesses such as hotels, bars, Unsecured business loans engineering companies and nursing homes to promote themselves without pumping lots of money into promotion this in turn put their company at risk. Nine times out of 10 the simple answer to this is a small load that will allow them to pump all that money into advertising and receive more custom while only having to make the monthly payments back to clear that debt this is one of the main methods that allot small businesses are currently.

There are a lot of lenders currently out there posting a 90% approval rate for small business finance a lot of lenders have very simple rules for example a majority of them require you to process smaller 3 ½ thousand pounds in credit or debit card sales whether that’s Republican mortar business or online these are classed as a merchant cash advance but this is selling will come into further down the line.

A lot of businesses are under the assumption that they can only borrow money if it’s in the hundred thousand pound mark this fortunately is incorrect businesses if they have been trailing two years and have a good credit history can borrow as much as a hundred thousand pounds but they can also borrow as little as 5000 it really depends on the circumstances of their business for example as a company if you’ve had a really rough two years and you’re struggling to get a few feet the chance of you being given £100,000 is of the very remote but that being said the chance of being lent 5000 with assurances of repayment is very high lots of lenders these days do understand that businesses can take a little while to get off the ground and get into the profit margins.

These days the mark is a lot more friendly for a borrower gone are the days where you have to go see your bank manager in a stuffy office pulling out your best suit and working on new charm to get a loan these days things are a lot more straightforward and rely more on the facts of your business rather than the aftershave you’re wearing that day. Companies will require some very basic facts about your business to work out whether your candidate for small unsecured business loan sum the basic facts most copies require a trading history, amounts owed as a business, staffing numbers and finally turnover with these key facts most lenders will be able to tell you if they can help you are not but not to fear should a lender from the bank not be able to help you there are other options still available to you are lots of private equity firms these days that lend to small businesses at very reasonable rates. A lot of these private equity firms even take it one step further should you be a business that really thrives in the summer and has really quiet winters they will even adjust your payment schedule to reflect so your monthly payments across the summer shall be a lot higher than they would be across the winter this falling in line with your business.

My Interest Rate Be Varied?

One of the most frequently asked questions that we receive is can they vary their interest rates depending on their busiest times of year. This is something that some lenders will facilitate but this very much depends on your business type should you be a cafe that are only open during the summer times they are more likely to do this but if you are engineering firm for example the trade throughout the year but just have peaks and troughs they are very unlikely to adjust your interest rate they are more likely however to allow you to pay more during your peak months which will in turn affect the amount of interest you pay on a monthly basis back to this is always something I suggest doing as this will clear the loan a lot quicker really help out those times and possibly you might be out to make a full payment but because you’re already ahead of your agreement you will not have to worry.

Can I Use My House As Collateral?

Lots of business owners feel that using their property to backup any type of loan for their business is their best idea and quickest way of getting the money. Certainly one of those points are true it is the quickest way to get the money as lenders are more likely to approve a loan with a good bit of collateral behind because they know should you default on the agreement that they can always recoup the money from the sale of your property personally I would never suggest a company director ever uses property as collateral get any loan is unfortunately never know what will happen to the business every business owner feels they have the best business in the world otherwise it would be doing it but unfortunately not every business will succeed should not succeed you will oppositely put your house at risk.

Will I Receive Regular Statements My Accountant Needs Them?

Yes most lenders will supply you with a monthly or quarterly statement during your payments interest received and amount outstanding on the loan more more lenders these days are also introducing online systems where you can manage your monthly payments on a daily basis if you wished they will allow you to increase your payments or decrease your payments as long as you don’t fall behind in the agreement.

How Do I Apply?

Applying today is extremely simple process filling the details on the box above and we will send of your application to the lenders that meet your criteria please make sure you state how much would like to borrow and what the personal loans for as this will obviously dictate what lenders are available for you.

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