For short-term cashflow situation, VAT payments, corporation tax, input loans etc. Longer terms & purposes available
Business Loans for Short to Medium Term Cashflow Help
A business loan may be a suitable alternative to other forms of finance such as asset finance depending on the reason for the finance.
We have an extensive panel of funders who provide Business Loans. The majority of these are for terms of up to one year although some lenders may consider a longer period of up to 5 years if they are happy with the credit proposition.
What Can I Use a Business Loan For?
Short term business loans can be used for:
- VAT payments
- Corporation tax payment
- Equipment purchase
- Stock purchase
- Most other short term requirements
As you can see, there are plenty of uses of loans for your business. The list above is a small selection.
How Do I Apply For a Business Loan?
Applying for a loan is generally a straightforward procedure. Most lenders will require the following as a minimum:
- Copy of business bank account statements (3 to 6 months)
- Company accounts (if available)
- Reason for loan
- Permission to perform a credit search
Business loans may be provided on either a secure or unsecured basis – as you would expect with an unsecured loan, the lender faces a potential higher risk and these tend to priced higher.
What Type of Companies Can Apply for a Business Loan?
Some examples of clients who’ve used loans to help their business.
A Ltd company who had only been trading for 11 months contacted us for a short term facility. They wanted to purchase £3,000 of media equipment. The company did not have the required accounts which most lenders would require. However their business bank accounts showed that they were trading well. The lender granted them a loan for a 10 month period which enabled them to make the purchase.
A client with a circa £5M turnover regularly uses a short term 3 month VAT loan. This enables them to repay the VAT amount (plus interest) over 3 months to the lender. They, in turn, ensure the borrowed amount is paid to HMRC on the due date. This client regularly uses the facility to smooth out cash flow irregularities their business faces.
We would be pleased to discuss the various business loan options with you and guide you through the application process.
How Can I Find Out More?
Are you interested to find out more about business loans? Contact us on 01554 562563 or fill in our form