If you’re looking for funding for your business, you can consider a business loan. These loans are available in different forms, including unsecured and secured loans. Government business loans are also available. You may also consider using a business loan broker. The broker will help you to secure the best possible rate for your loan.
Table of Contents
Unsecured business loans
Unsecured business loans are a great way to expand your business without having to put up collateral. They can be used to pay for new equipment, expand your product line, train new employees, and break into new markets. These loans are easy to get and offer great flexibility. They also tend to be quicker to obtain than other types of business loans.
Unsecured business loans are available to many different types of businesses in the UK, but eligibility requirements vary widely. Most lenders require that you are 18 or over, run a business in the UK, and have a decent credit history. Some lenders may also require a personal guarantee from the business owner.
Unsecured business loans are not as risky as secured business loans because they are not secured by assets. However, this does not mean they are risk free. Many unsecured business loan lenders are regulated by the Financial Conduct Authority (FCA), making them a safer choice for many businesses.
Line-of-credit loans
Whether you are in need of working capital or want to expand your business, a line-of-credit loan for business can help you meet your goals. These revolving lines of credit offer the flexibility of having access to additional funds whenever you need it. They are similar to short-term loans, but differ from them in a number of ways.
The requirements for a line of credit are generally easier to meet than those for a traditional business loan. You’ll typically need to provide basic information about yourself and your business. Lenders will also look at your current debt schedule, collateral, and general business information. However, a business line-of-credit loan will require less documentation than other types of business loans.
Interest rates for a business line-of-credit loan vary from lender to lender. Depending on the amount you borrow, the term and your credit score, you may pay anything from 4% to 60% APR. Generally, online lenders will offer lower interest rates than traditional lenders, though you may have to pay extra fees to obtain a lower interest rate.
Government business loans
Government business loans in the UK are a great way to get the money you need to start or expand your business. They do not require personal guarantee or collateral, and come with a low interest rate. Successful applicants will also receive free mentoring and application assistance. The government offers these loans to help new and small businesses start or expand their business.
The Small Business Guarantee Scheme is an excellent opportunity to start or expand a new business. The scheme helps to reduce the risk of lending to SMEs by guaranteeing the repayment of interest. It also offers free money for the first 12 months of interest and other lender fees. This scheme is aimed at helping businesses in the North West, Yorkshire and Humber, Tees Valley and North East, and is funded by the British Business Bank.
The Government offers many different types of business grants. Some grants are specifically designed for small businesses, while others are designed for growth. Some grant schemes were developed in response to the recent Covid-19 pandemic.
