February 2, 2023


Business/Industrial Goods and Services

Recovery Loan Scheme small business loans

Find out how to get a loan if you work for yourself, including which lenders offer business loans for sole traders. Here, you sell your invoices to a third-party for a percentage of the invoiced amount. You don’t get the full value of your invoices – this is the more expensive of the two options explained here – but you won’t have to worry about credit control (chasing-up repayments). Don’t forget that with this option, the factoring company will have contact with your clients, so you’ll need to be OK with that. You can also use a business card to increase your company’s spending power, better manage your expenses, and even earn business-focused rewards.

  • Let us demystify the process and show you some of the best small business loans around.
  • You might want to consider invoice discounting if your business sometimes has gaps in revenue due to outstanding accounts.
  • When you make major financial decisions, consider getting independent financial advice.
  • If you or your business has limited or poor credit history, it may be hard to find a lender willing to offer you finance.
  • Read the full Royal Bank of Scotland business loans and finance review.

In order for Northern Ireland organisations to be eligible to apply, they must have an income of less than £1 million in the previous 12 months. The funding is available to organisations keen to do more of the good work they do – whether it’s buying equipment, hiring new talent, or progressing with business development plans. Unfortunately you will need to be at least 18 years of age in order to apply for grants and funding programmes. Unfortunately only UK citizens or holders of ILR can apply for grants and funding programmes.

Short Term Vs Long Term Business Loans

This means the average monthly or weekly repayment will be higher than if the repayments were spread out over several years. A long term loan will usually be repaid within 5 or 6 years, but big banks often allow longer agreements of 10, 15, or even 25 years. This spreads out the repayments and can make borrowing more affordable for the business. Lenders will usually state either a fixed interest rate that applies to all loans or the rate will depend on your business’ individual circumstances and credit history.

Long-term loans generally take longer to get approved, but suit companies that need a longer amount of time to pay the money back. The scheme allows businesses to opt for term loans, asset finance, overdrafts, and invoice financing. To learn more about how the recovery loan scheme works, you can check out our comprehensive recovery loan scheme page which provides further details on the product. At present, no digital banking platform offer business loans, though Starling Bank have offered them in the past. Though these providers offer other services like foreign exchange or savings accounts, you’ll have to sit tight for more packages.

Its aim is to provide timely, life-enhancing support to people in need; short-term involvement for long-term impact. The Transform Foundation is a registered charity and provides grants to help UK-registered organisations that are clearly for public benefit and the creation of social value. Awards gives NFP’s a chance to apply for a grant for projects that aim to help improve local communities and the lives of people most in need. You can apply to Awards if you are a not for profit / voluntary or community group, social enterprise, community council, school or statutory body.

How Long The Loan Is For

If your business needs to purchase an expensive piece of equipment, such as a vehicle, machinery or computer system, you may want to consider asset finance. Instead of having to cover the cost upfront, you can pay it off in smaller instalments. Unlike a regular business loan, asset finance is secured against the cost of the asset itself.

Your business applies for a specific amount to pay for something up front and then repays the amount plus interest over a specific period. Some are secured on your business’ assets, some require a personal guarantee meaning it’s secured on your own property. Some are due to be repaid within a few months while others can be repaid over several years. Whether you should or shouldn’t take out small business loans is a matter of your personal attitude towards debt. On a more practical level, it’s useful if business owners have a robust idea of the health of their business before looking into finance options like small business loans.