Business Loans – Funding when you need it
Business Loans are a relatively convenient way of accessing funding over the short to medium term.
The loan is for a fixed term during which repayments are normally made monthly or quarterly. Terms are generally up to 6 years.
Depending on the amount, term and perceived risk of the borrower, the lender may require that a personal guarantee from a director.
Generally, a business loan can be used for any legitimate reason.
Business Loan Advantages
Business Loans can be useful to businesses of all ages and sizes, they are:
- Easy to set up
- Simple application
- Can be used for most business purposes
- Fixed repayments for period of loan
- Term up to 5/6 years
Business Loan Disadvantages
Although convenient, they may not be right for you:
- As not secured on an Asset, Director Guarantee may be required
- Can be slightly more expensive in some circumstances
- Not linked to useful life of Asset (if used for that purpose)
- Set amount, not easy to top up
As you can see, there are several advantages and disadvantages in using a Business Loan as a form of borrowing – it all comes down to what is best for you. We will be happy to discuss options with you, as it may be an Asset Finance Facility, an Invoice Finance Facility or a form of revolving credit may be better for you.
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