A business loan sounds simple but can be quite a complex type of finance as it depends on numerous factors. There is no ‘one size fits all’ approach to acquiring a business loan; instead it’s crucial to take expert advice to help find the right loan for you and your business.
With a wide range of loans on the market and different products designed for different needs – such as emergency finance, short-term lending, long-term lending, growth projects, and start-up finance to name just a few – it can be hard to know where to start. In addition to this, there are hundreds of lenders out there offering business loans but with different caveats, rates, and terms. Some are high street banks, alternative lenders, online lenders, small independent brokers and so on – it can be a minefield which is where UK Business Finance can help. Our finance experts have full market access and specialise in helping firms find the lender that’s right for them.
Eligibility is key – and can depend on a number of factors. You can expect to be asked about the following when applying for a business loan:
- Profit / Turnover
- Loan amount vs turnover
- Bank statements
- Filed accounts
- Trading history
- Payments and credit history (e.g. late payments, defaults, CCJs)
A lender can build a picture of your business with this information which helps them to quantify the risk they would be taking in providing the finance. As a rule of thumb, most lenders are unlikely to lend more than 10-20% of your annual turnover. They’ll also want to see some healthy revenue figures to show that your business is strong. A short trading history (start-ups) or a patchy trading history can make it difficult to get the required funding.
However, many of the lenders we work with – including specialist lenders for businesses with a short trading history – prove to be much more flexible than traditional banks.
We can help you find the business loan you’re looking for – contact us today about starting your business loan application and one of our finance experts can immediately starting analysing the marketplace for the right options.