What is a Business Loan?
A business loan is a loan an individual or an entity take on for business purpose. There are many types and structures of business loans and it is very important to make sure the loan is a suitable one which will fulfil the objectives of taking the loan in the first place.
Some of the common business loans available these days are in fact provided by non bank lenders, which can leave your bank facility for you for other borrowing or better still, may not take your property as security.
It is wise to try and separate business and personal lives and the same applies to funding. Why risk your house if you don’t need to.
Just as important is to be able to budget for the cost of the new loan and make sure you are able to factor that cost into your business plan so you don’t end up out of pocket.
Ideally, a business loan should be a debt which you take on to be able to generate or increase the revenue of your business.
There are different business loan products in place, where some are secured and some are not. Some are floating and continuing and some are fixed terms.
Some examples of business loans are:
- Unsecured business overdraft
- Unsecured business loan
- Trade finance
- Stock and inventory loans
- Debtors finance
The first step in applying for a business loan is to gather the necessary documentation and fill in the application form to allow us to assess it for you before submitting to any lender. Remember, you do not wish to make multiple applications to lenders as each one will reduce your credit score.
Once We have found a loan that fits your needs, we can begin the application process on your behalf while you keep running your business.
