Frequently asked questions

Unfortunately, there’s no single answer to this as many factors determine how long the process will take. It can depend on the type of finance you are applying for, the lender’s policies and procedures, and whether it’s secured or unsecured. If you apply for a business loan from a bank you already use, this might speed things up. Another way to make the process as smooth and quick as possible is to make sure you have all your supporting documents to hand.

Having poor credit doesn’t make it impossible to be accepted for business financing. However, it might significantly reduce your options as credit checks are standard for all types of funding.

Again, the answer to this will depend on the lender you choose, the amount you need to borrow and the type of funding you opt for. Some lenders will process your application within minutes and provide funds on the same day, whereas others may take a few days to get back to you. Secured loans can take several weeks or months to arrange as valuers and lawyers complete their administration to get the facility in place. Please also remember that you will need to budget for these professional costs

Yes, in most cases you can pay your loan off early. There are a few benefits to doing this, including reducing your interest repayments and removing the debt from your balance sheet (meaning you’re more likely to be accepted for future funding). However, some lenders might make you pay a penalty when you choose to pay off your loan early. Make sure you check the terms and conditions within your finance agreement for details.

For the most part, your loan application should be ‘no obligation’, meaning just because you’ve been accepted it, doesn’t mean you have to proceed. However, this might not be the case for all lenders, and it’s worth checking beforehand.

Any financing you have arranged will need to be repaid in line with the terms and conditions of your agreement. So, it’s important to make sure you can afford any proposed repayments. If you struggle with your finance payments, it’s best to let your finance provider know. Lenders will appreciate you getting in touch before you start missing repayments. However, if you’ve already missed a payment, getting in contact could mean fewer charges and, importantly, less stress.

Your lender can also offer advice about how to deal with the payments. Potential options could be:

• Restructuring your debt to make it more affordable
• A short repayment holiday
• Reduced payments.

Independent organisations such as Citizens Advice can also be approached for free debt advice.