The small business loans section has in-depth advice articles and guides on how and where start-up companies and SMEs can get a UK business loan, whether from established commercial finance providers, online providers or even family and friends. SmallBusiness.co.uk are working in partnership with Funding Options to help you find the right finance for your business.
A business loan can be sought for many reasons but is typically used to either: start a new enterprise, fund expansion, fund major capital expenditures, or to cover operational costs that a company may otherwise be unable to afford (i.e. for cash flow reasons).
There are two key categories of loan – secured or unsecured – and both types can be made available over short, medium or long-term periods. There are a wide variety of lenders servicing the many different niches and almost all will usually approve business loans based upon the financial strength of the borrowing business and its perceived ability to earn a profit.
Borrowing money is a major step for a company and almost inevitably introduces a raised level risk. However, taking on debt in the form of a loan is also one of the commonest forms of financing small business operations. Our experts write about business loans from the perspective of the UK SME community and our aim is to help readers understand how small business loans work, the many options available, and how to compare and choose between them.
Ultimately, though, a business loan may not always be the best finance option, so we also encourage readers to look at other routes such as grants and the ever expanding alternative finance channels.
There is no reason in principle you cannot finance the purchase of an overseas business in the UK. The Business Banking Code says that before a bank lends you any money, they will assess whether they feel that you will be able to repay it.