One of the most common forms of business finance, a simple business loan can be arranged quickly and is easy to understand. From a few thousand pounds up to £500k depending on turnover and credit status, this option is often the first one a business will look to as it’s the fastest to arrange and often easiest to understand.
Similar to bank overdrafts, lines of credit can be agreed in advance and used as needed for working capital and expansion. Usually for businesses who are growing and need stock finance or to cover gaps in cash, if they are paid down quickly they can be cost efficient.
For loans that are either larger than the business can support via turnover, or the profile of the business is considered a higher credit risk, secured loans are an option. Using either commercial property, buy to lets or directors own assets as security, often for a short term and for a specific purpose that has a material benefit to the business.