February 8, 2023


Business/Industrial Goods and Services

Compare 50 Uk Small Business Loans small business loans

Start Up Loans are government-backed and charge a fixed interest rate of 6% per year. You’ll get free support and guidance to help write your business plan, and successful applicants get up to 12 months of free mentoring. While you may not envisage any difficulties in paying the loan, you cannot predict the future. You must ensure securing your asset against the finance arrangement is a risk you are willing to take. Here are some key disadvantages to consider when taking out a small business loan. Regardless of your credit history, we can find the right product for you, even if you have a less than perfect credit score.

There’s also information to help businesses engage with education. The fund can match accredited investment partners up to a maximum of 50% of the total funding package on a commercial basis. It can provide from £10,000 up to £1.5 million, as part of a total deal size ranging from £20,000 up to £10 million. The programme aims to create globally successful products and world-firsts by taking great ideas to the market. Grant support is higher than regional and national funding programmes, usually at one of two levels, 70% and 100%.

To this end, we’ve put together a health check tool you can use if you’d like to look into your business’ health further. The Solent Grant is tailored to support SME’s to grow quickly through delivering new processes / products / services, and / or developing new markets. For existing businesses, the fund can provide up to 20% of your total project costs, up to a maximum funding of £75,000. For start-up businesses that can demonstrate credible high growth potential the fund can provide up to 40% of your total project costs, up to a maximum funding of £75,000.

A sudden influx of cash can be exciting and overwhelming, so it’s important to stick to your business strategy and loan plans and spend the money wisely. One of the main advantages of using revolving credit is that you only pay interest when you use the money, rather than for the whole time you are using the facility. Unlike a loan, interest is only charged on the amount withdrawn as it is outstanding, so you are only paying for what you use. If you’re looking to apply for a small business loan with SME Loans, follow the steps below. If your small business is doing well, you might find yourself needing to move to a bigger premise, expand your workforce – or both.

This will depend on a number of factors such as the size of your business and the type and size of the loan you need. Small business loans available with huge variety of terms. Overdrafts, business credit cards, and commercial mortgages also available.

How Long Does It Take To Get A Small Business Loan With Us?

You can now also check the rates you’re likely to pay for lending up to £50,000. Apply now for a Small Business Loan using our simple online application form. You are able to switch your Business Current Account to another provider while retaining your business loan with us. A director, partner or member’s guarantee is a personal guarantee that confirms that you will be liable for the company’s debt. If you cannot meet the debt, we might seek additional security to settle that debt. Optimise your cashflow with bespoke asset finance – provided by our partner Propel12.

  • A business loan is a straightforward way to finance your business.
  • Open to UK registered charities where the work or project is UK based.
  • You have a choice of a base rate or fixed rate loan depending on your business needs.
  • Secured business loans are generally easier to obtain, particularly if you are deemed as a risk by the lender.
  • It is not designed for start-up or very early-stage enterprises.

Unlike a start-up loan, small business loan eligibility doesn’t necessarily depend on how long a company has been trading. The company does have to be “small” however, and exactly how small varies from lender to lender. Small business loans can be secured or unsecured, and more often than not charge interest at a fixed rate over terms up to around 60 months . Some business loans are short term and others are more long term. Short term loans are usually repaid within 3 to 12 months.

If a business opportunity presents itself, but you need substantial funding to take it up, we’re ready to help you explore if it’s right for your business. The Improvement Grant scheme provides financial assistance to owners or tenants of business properties that have become rundown and have deteriorated over time. The grant scheme is open to both landlords and leaseholders of commercial and retail properties located within the Caerphilly county borough. Shops may qualify for grant support towards a range of improvements. The maximum total grants that each shop can apply for over a rolling three year period is £10,000.

Other Funding Options

It’s not unusual for lenders to ask for a personal guarantee – meaning an individual will be personally responsible for the loan. Security can also take the form of a company’s realisable assets, such as a property, vehicles or equipment. Where no assets are available, it may be necessary to secure the loan on a director’s own property. You might want to consider invoice discounting if your business sometimes has gaps in revenue due to outstanding accounts.

The point here is, the government is willing to invest in its most important economic resource, its human capital; a nation is only as good as its people. Of the over 5.5 million businesses in the UK, over 99% of them are considered to be small or medium sized businesses characterised by having between 0 and 249 employees. An even more staggering fact is that 5.3 of the 5.5 million businesses were considered to be micro businesses, having 0 to 9 employees. Use our “Rate change calculator” to work out how a change in Bank Rate could affect your loan repayments. There is always the possibility that interest rates may go down, leaving a fixed rate loan at a higher level compared to a variable rate loan.