If you are a business with 0-49 employees you are classified as a small business, and if you need to purchase equipment or other assets, a small business loan is your most suitable avenue for raising finance; unlike an overdraft the bank cannot insist on full payment unless your loan conditions have been breached.
The majority of small businesses loans are provided by banks, although there are a small number of other companies offering finance to businesses; your local Business Link can be very helpful when it comes to researching a small business loan, and can provide details of lenders in your locality.
Before applying for the business loan, first decide whether you want a variable or fixed rate of interest during the loan term, as this is defined as part of your loan agreement; a variable rate fluctuates with the movements of the base rate, and a fixed rate remains at the same percentage for the duration of the loan. Some banks offer different terms from these as well as alternative currencies for repayment.
Adept Finance can also help with your application, giving you the best chance of success, generally a small business loan application needs backing up with a business plan, and this is where Adept Finance Ltd can be invaluable. If your loan application is declined, your Adept Finance advisor should be able to direct you on the next best course of action.
Small businesses frequently look for business loans when a business loan is not the correct type of commercial finance product they need and, more importantly, are not going to be given by the lender.
Before getting a business loan quote, it is best to ask yourself:
- Do I need more money to help with cash flow?
If the answer is yes, then factoring is an option that is probably better suited to your needs. Factoring allows you to get cash advances on your invoices allowing you to unlock the tied-up money your company processes.
- Do I need money to buy machinery, equipment or any other new company asset?
If yes then you might be better considering some form of asset finance such as leasing. There are various forms of asset finance - hire purchase is a form of consumer asset finance but you'll need a more tailored package.
- Can you offer property as security on the loan?
A mortgage may be a better option if the answer is yes - and it may be a lot cheaper. Current mortgage rates are favourable to borrowers an can provide a cheaper form of finance. Consider Adept Finance Ltd as an option to get a quote for commercial mortgage for your company. Adept Finance Ltd is the top rate commercial mortgage broker to get you tailored mortgage quotes.
Top of Page
