Most businesses will need an extra injection of cash at some point in their life.
This may be to resolve a cash flow issue, to make a large purchase or it could be time for your business to take that next step.
There are numerous banks and lenders out there, meaning that looking for a business loan can often be a daunting and overwhelming prospect.
That's why we've put together this easy-to-understand guide, detailing everything that we believe you need to know with regards to business loans.
A business loan is a loan that a business uses specifically for business related activities.
This may be for new inventory, operations, property or anything else that a business may need to thrive.
This is a fairly simple comparison.
Fixed rate loans will come with a fixed rate of repayment that will continue throughout the agreed repayment period.
A bonus of a fixed rate is that you're aware at all times as to what your monthly repayments will be.
A variable loan however will not and this will come with a rate that is subject to fluctuation, determined by market conditions.
Sometimes this will work in your favour and you will pay less than other fixed rate alternatives.
Sometimes it will not and you may pay more than if you were on a fixed rate.
Eligibility will depend on a range of factors.
Like any loan, credit history checks will be required but you may also be asked to show any business plans and/or accounts.
It is always best to make sure that all of your finances are in order and that you are as prepared as possible to increase the chances of approval for a business loan.
You may feel a loyalty to your current bank to take a business loan out with them, but always remember that it pays to shop around.
Every business is different and will require a different business loan to fulfil their unique needs.
It is essential that you choose the right business loan for your business.
It is best that you ask yourself a few questions when seeking out a loan seeing which criteria best suits you.
These questions may include:
Hopefully that's cleared up some questions that you may have regarding how a business loan can help your business.
Now the last one you most likely have, is "how can I get a business loan"? Well, the process couldn't be simpler; all you have to do is click the "Get Quote" button to start comparing prices in minutes.
This is an absolutely free service and there's no obligation to commit, so click the button, follow the prompts and get comparing now.