Santander Working Capital Loans
You could get an approved limit of up to £100,000 in minutes. There’s no obligation and you won’t pay any interest until you choose to access your funds and take out a loan. What’s more, Santander don’t charge a fee to make an early repayment. You then choose to borrow from £500 up to your approved limit as often as once a day and the funds will be with you within 24 hours. You’ll repay each loan over 6 months. Santander may increase or reduce your approved limit from time to time as part of ongoing reviews of your account. Interest charges range between 6%-26% over a 6 month loan term.
NatWest Small Business Loan
Borrow from £1,000 up to £35,000 at a fixed rate. You know how much you'll pay each month, allowing you to manage your cash flow in line with your plans. Terms ranging from one year, up to ten years. Suitable for most types of small to medium sized businesses - from sole traders to partnerships and limited companies.
Clydesdale Bank Business Loan
Clydesdale can offer loans of £25,001 to £10,000,000. An arrangement fee may apply. Option of fixed or variable interest rates or a mix of both. If taking a fixed rate option, a fixed rate early repayment charge may arise in the event of early repayment during the term of the fixed rate. Up to 15 year term on variable rate, and 5 year term on fixed rate.
What type of business loan is right for me?
There are many occasions as a business owner that lead to you needing to borrow money. A loan could help with the initial costs of setting up a business or help to expand your business to different locations, target markets and product lines.
Choosing the right business loan will make it easier to manage and cheaper to pay back, so it’s important to gain a full understanding of the different types available.
There are two main types of business loan: unsecured loans and secured loans. With unsecured loans, you borrow the money and pay it back over the agreed term. They are less risky as you don’t use your business assets as part of your application. You can use the money that you borrow from an unsecured loan for almost any business-related purpose you choose, such as expanding operations, purchasing stock or taking on new staff.
On the other hand, secured loans use your business assets as security on your loan. Usually, this would be something of considerable monetary value such as property, stock or machinery. This method is much riskier for you but less of a risk to the lender as it allows them to sell your asset if you can’t pay back your loan. If you can’t pay back your loan, the lender will also register the default on your businesses’ credit record which will make it more difficult to get financial backing in the future.
FAQs about business loans
What is a loan?
A loan is a specified sum of money borrowed for an agreed period of time. The borrower is required to pay back the loan, including the interest charged.
Why might I need a business loan?
There are many different reasons why you might decide to take out a loan. Some of the most common reasons include purchasing stock, taking on new staff, moving premises, buying new equipment or expanding your business operations.
Can I get a business loan if I have a bad credit history?
Before being accepted for a loan, the provider will check your credit history. A bad credit score may reduce the options available to you.
How much can I borrow?
The amount you can borrow depends on the limits each loan company offers. You should only borrow what you need to avoid paying more interest rate than necessary.
Can my small business get a loan?
Yes, you can get a loan for your small business, but the type of loan you’re eligible for may depend on the size and turnover of the business.
Do I need a business account for a business loan?
Some banks may require you to have a business current account with them before offering you a loan.
What will happen if I can’t pay back the loan?
If you miss a payment, the lender will likely charge you a fee and the interest will end up being higher because you owe money for longer. The lender may also register the default on your businesses credit record which will make it more difficult to get financial backing in the future.
Could I lose my home if my business defaults?
Depending on the type of loan you choose, your personal assets could be in jeopardy. Always check the terms and conditions carefully before taking out a business loan.