Traditionally, Business Loans were provided by banks, but this type of finance has become increasingly more difficult to secure. A variety of new lenders have joined the market and they can often provide easier applications and faster decisions. Whether you need to invest in growth, provide working capital or deal with a cashflow shortfall, a Business Loan can help you release the potential of your small business.
If you want to borrow a large sum of money, you will probably need a secured loan. The lender will require something as security in case you cannot pay the loan back. They’ll have the legal authority to take the asset if you can’t make the agreed repayments.
An unsecured loan may be suitable for smaller amounts. The lender will make the decision based on a number of factors, including the credit rating of your business. While nothing is required as collateral or security the lender will expect a Personal Guarantee from you and your partners and co-directors, which will mean that you would be required to make the repayments if your business could not. This is not unusual but protection of your assets through Personal Guarantee Insurance can provide reassurance for you and your family.