When it comes to your business, it’s something that’s important to you. It’s something you have invested a lot of time, money and sacrifice into and of course you want it to be a success. But sometimes you need a little help along the way especially when it comes to the financial side of things. The answer is often needing to borrow capital from a lender.

When it comes to company loans, there are so many different types, and these can vary according to the period allocated as well as interest rates and repayment terms. Short-term loans can offer up to around £30,000 for under a year to qualify as short-term. Otherwise if you’re looking for larger amounts, then you’ll have to consider long-term options where fixed payments are made over a number ofyears.

Lenders can either specialise in a particular sector such as small businesses while some solely focus on small business start-ups. You need to find the one best suited to your situation.

Benefits of getting a business loan

These loans (also called company loans) are useful in many different scenarios, from a quick injection of cash to expanding product lines.

When looking into start-up loans, it’s important to note that they are for when you first begin your business on your own, while small business loans can provide a vital escape from unforeseen scenarios such as employee demands and cash flow issues caused by outstanding invoices.

There is also the alternative option of “peer-to-peer” lenders where you can borrow from a person rather than a bank. In this situation, you would be presented with three options which include secured or unsecured loans or an asset finance loan.

Who can qualify for a business loan?

In reality, any company or business can apply for a loan, however not all will be approved due to the requirements from the bank or alternate lender. Therefore, it’s important to do your research before selecting which loan you will apply for.

There’s also the economic factor to take into consideration especially these days when it’s become so much harder to get approved for credit. Often you are required to present personal finance history, credit scores and business financials from previous years.